Left-digit biases: Individual and institutional investors

Activity: Talk or presentationPresentation at conference/workshop/seminar


The presented paper examines the left-digit biases of individual and institutional investors using a tick-by-tick dataset from a highly liquid index futures market. Both investor groups exhibit excess buying after the ask falls with a tens-digit decrement, whereas excess selling (buying) is observed only for institutions (individuals) after the bid rises with a tens-digit increment. Such excess buying is generally pronounced when price uncertainty is high, except for institutional excess selling, which is evident when the bidask spread is relatively narrow and on maturity days. Our findings imply that individuals and institutions focus on cognitive reference points but have heterogeneously driven biases.

2023 Joint International Conference on Finance is co-hosted by Korean Financial Management Association, Korean Association of Financial Engineering, and Korea America Finance Association. The on-site conference was located at HanKyong National University (Pyeongtaek, Republic of Korea).
Period26 May 2023
Event title2023 Joint International Conference on Finance
Event typeConference
LocationPyeongtaek, Korea, Republic ofShow on map