[1] Hersh Shefrin and Meir Statman identified and named the effect in their 1985 paper, which found that people dislike losing significantly more than they enjoy winning.
"[2] In 1979, Daniel Kahneman and Amos Tversky traced the cause of the disposition effect to the so-called "prospect theory".
[4] Nicholas Barberis and Wei Xiong have depicted the disposition impact as the trade of individual investors are one of the most important realities.
The influence, they note, has been recorded in all the broad individual investor trading activity databases available and has been linked to significant pricing phenomena such as post-earnings announcement drift and momentum at the stock level.
[6] Dacey and Zielonka showed that the greater the level of stock prices volatility, the more prone the investor was to sell a loser, contrary to the disposition effect.
John R. Nofsinger has called this sort of investment behavior as a product of the desire to avoid regret and seek pride.
[8] Researchers have traced the cause of the disposition effect to so-called "prospect theory", which was first identified and named by Daniel Kahneman and Amos Tversky in 1979.
[3] Kahneman and Tversky stated that losses generate more emotional feelings which affect individual than the effects of an equivalent amount of gains.
[5] This phenomenon is called the “asymmetric value function," which means, in short, the pain of loss outweighs the equivalent level of gain.