Tarvo Vaarmets, for whom the research paper was also an important part of his PhD thesis, commented: “Half-jokingly it could be said that the investors at the Tallinn Stock Exchange have never soared so high in the scientific arena.” The fact that the article was picked out from the 4% of the papers submitted to the journal that are published in the first place, clearly shows its high quality.

In the research paper, the authors investigate the behavior of investors at the Tallinn Stock Exchange; more specifically, the presence of the disposition effect and its relationship with investor’s intelligence, education and learning abilities. The disposition effect is a widespread behavioral pattern, where investors tend to hold on too long to losing positions and sell winning positions too early.

Tõnn Talpsepp, who led the TalTech research group further explained: “We found that investors at the Tallinn Stock Exchange are also affected by this harmful phenomenon, although higher intelligence and education levels decrease the effect. Educated investors are also more capable of learning, and therefore can improve their investment outcomes.”

In addition, Liivamägi, Talpsepp and Vaarmets share the practical implications of their research and long-time experience in the field of finance in their recently published book “Rahaedu põhimõtted” (“Key principles to financial success”) which is directed to Estonian readers. The aim of the book is to help people make better financial decisions and thereby achieve financial success.