ASSESSING THE IMPLICATIONS OF THE USAGE OF ROBO-ADVISORS IN INVESTMENT SERVICES ON INVESTORS’ DISPOSITION EFFECT
Prof. Dr. Valdonė Darškuvienė (ISM University of Management and Economic, Social Sciences, Economics – S 004) supervised the dissertation from 2019 to 2024.
The doctoral dissertation will be defended at the Scientific Council of Economics at ISM University of Management and Economics on March 19, 2025, at 11 A.M in ISM room 209.
Summary:
This dissertation aims to examine how the usage of robo-advisors in investment influences the disposition effect of individual investors. Based on choice architecture, dual-process and cognitive dissonance theories, a conceptual model is developed to explain how robo-advisors influence the disposition effect. The empirical study based on an experiment demonstrates that passive digital nudges are more effective than active ones in reducing the disposition effect. The dissertation contributes to cognitive dissonance theory in the context of robo-advisors and proposes a refined definition of robo-advisors. It suggests that financial literacy moderates the relationship between the usage of robo-advisors and the disposition effect through the mechanism of trust. The findings provide practical insights into how robo-advisors help to mitigate behavioral biases, support personalized financial advice, and enhance investor welfare through trust and education.
Defence council:
Assoc. Prof. Dr. Bogdan Stacescu (BI Norwegian Business School, Economics – S 004)
Prof. Dr. Jelena Stankevičienė (Vilnius University, Social Sciences, Economics – S 004)
Prof. Dr. Aras Zirgulis (ISM University of Management and Economics, Social Sciences, Economics – S 004)
