Do Limit Orders Alter Inferences about Investor Performance and Behavior?

@inproceedings{LINNAINMAA2010DoLO,
  title={Do Limit Orders Alter Inferences about Investor Performance and Behavior?},
  author={JUHANI T. LINNAINMAA and Michael Brennan and John Campbell and John Cochrane and Andrea Frazzini and Josh Rauh and Gideon Saar and Andrei Simonov and Dick Thaler and Tuomo Vuolteenaho and Ning Zhu},
  year={2010}
}
  • JUHANI T. LINNAINMAA, Michael Brennan, +8 authors Ning Zhu
  • Published 2010
Individual investors lose money around earnings announcements, experience poor posttrade returns, exhibit the disposition effect, and make contrarian trades. Using simulations and trading records of all individual investors in Finland, I find that these trading patterns can be explained in large part by investors’ use of limit orders. These patterns arise… CONTINUE READING