arbiter
JournalsPricingAccount

Momentum and Disposition Effect in the Frontier Market in Sri Lanka

G. Dilini & N. Neelangie

International Journal of Accounting and Business Finance2025https://doi.org/10.4038/ijabf.v11i2.187article
ABDC C
Weight
0.50

What the paper says

This study aims to investigate whether the disposition effect leads to momentum in stock returns. The researcher identifies two sub-periods: from 2015 to 2018, before the economic crisis, and from 2019 to 2022, during the economic crisis. The results indicate that a higher capital gain overhang is associated with lower momentum returns both before and during the economic crisis. Therefore, the disposition effect was negatively related to momentum returns before the economic crisis (2015-2018), during the economic crisis (2019-2022), and throughout the entire period considered by the researcher (2015-2022), and this relationship was statistically significant. The study aims to provide investors with a framework to enhance their trading strategies and portfolio performance. Understanding this link empowers investors to capitalise on behavioural inefficiencies, potentially gaining an edge through timing mechanisms that anticipate momentum-driven movements.

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.4038/ijabf.v11i2.187

Or copy a formatted citation

@article{g.2025,
  title        = {{Momentum and Disposition Effect in the Frontier Market in Sri Lanka}},
  author       = {G. Dilini & N. Neelangie},
  journal      = {International Journal of Accounting and Business Finance},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.4038/ijabf.v11i2.187},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Momentum and Disposition Effect in the Frontier Market in Sri Lanka

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.