The impact of behavioral pitfalls oil investors' decisions: The disposition effect in the Taiwanese warrant market

Investors in the Taiwanese warrant markets were investigated to examine the existence of the disposition effect to sell winners too early and hold losers too long. Empirical results indicate that: first, both the disposition effect and house money effect exist in the Taiwanese warrant market. Secondly, the issuance price of a warrant is the predominant reference for investors to make strategic decisions. Furthermore, subloser investors are more concerned with the new high more than with the new low when they make a strategic decision. In the end, warrants with different issuance prices, warrants with different returns, and war-rants with different market prices were found to exhibit the differentiated disposition behavior.