COMFORTING INVESTMENTS ARE RARELY PROFITABLE IMPEDIMENTS IN INVESTOR DECISION MAKING

http://dx.doi.org/10.31703/gssr.2019(IV-II).07      10.31703/gssr.2019(IV-II).07      Published : Jun 2
Authored by : TaqadusBashir , FaisalMehmood , AltamashKhan

07 Pages : 51-59

References

  • Alloy, L. B. (1981). Induced Mood and the Illusion of Control. Journal of Psychology,41(6), 1129-1140.
  • Bain, R. (2009). Error and optimism bias in toll road traffic forecasts. Transportation, 36, 469-482.
  • Barber, B. M., & Odean, T. (2001). Boys Will be Boys: Gender, Overconfidence, and Common Stock Investment. The Quarterly Journal of Economics, 116(1), 261-292.
  • Barberis, N., Shleifer, A., & Vishny, R. (1998). A model of investor sentiment. Journal of financial economics, 307- 343.
  • Bashir, T., Jamil, S., Anwar A., Afzaal, N., & Tariq, A., (2016). Influence of Investor's Personality Traits and Demographics on Overconfidence Bias, Self-Attribution Bias and Availability Bias. International Research Journal of Finance & Economics, 146.
  • Bashir, T., Javed, A., Usman, A., Meer, U. I., & Naseem, M. M. (2013). Empirical Testing of Heuristics Interrupting the Investor's Rational Decision Making. European Scientific Journal, 9(28).
  • Durand, R. (2003). Predicting a Firm's Forecasting Ability. Wiley, 29( 9), 821-838.
  • Gallimore, P. (1996). Confirmation bias in the valuation process: a test for corroborating evidence. Journal of Property Research, 261-273.
  • Grinblatt, M., & Keloharju, M. (2009). Sensation Seeking, Overconfidence, and Trading Activity. The Journal of Finance, 64(2), 549-578
  • Hill, C., Memon, A., & McGeorge, P. (2008). The role of confirmation bias in suspect interviews: A systematic evaluation. Journal of The British Psychological Society, 13, 357-371.
  • Iqbal, N. (2015). Impact of Optimism Bias on Investment Decision: Evidence from Islamabad Stock Exchange, Pakistan. Research Journal of Finance and Accounting, 6(19).
  • Jonas, E., Hardt, S. S., Frey, D., & Thelen, N. (2001). Confirmation Bias in Sequential Information Search after Preliminary Decisions: An Expansion of Dissonance Theoretical Research on Selective Exposure to Information. Journal of Personality and Social Psychology, 80(4), 557-571.
  • Jonas, E., Hardt, S. S., Frey, D., & Thelen, N. (2001). Confirmation Bias in Sequential Information Search after Preliminary Decisions: An Expansion of Dissonance Theoretical Research on Selective Exposure to Information. Journal of Personality and Social Psychology, 80(4), 557-571.
  • Jorgensen, M., Teigen, K. H., & Molokken, K. (2004). Better sure than safe? Overconfidence in Judgment based software development effort prediction intervals. Journal of Systems and Software.
  • Kahneman, D., & Riepe, M. W. (1998). Aspects of Investor Psychology. Journal of portfolio management, 24(4).
  • Koch, C. W., Köhler, A. G., & Yankova, K. (2016). Professional Skepticism and Auditor Judgment: Does Trait Skepticism Mitigate the Recency Bias?
  • Langer, E. J. (1975). Illusion of control. Journal of personality and social psychology, 32(2), 311-328.
  • Lin, H.-W. (2011, March). Elucidating rational investment decisions and behavioral biases: Evidence from the Taiwanese stock market. African Journal of Business Management, 1630-1641.
  • Montier, J. (2006, Febrary 02). Behaving Badly. Social Science Research Network
  • Murphy, J., Hofacker, C., & Mizerski, R. (2006). Primacy and recency effects on clicking behavior. Journal of Computer-Mediated Communication, 11(2), 522-535
  • Park, J., Konana, P., Gu, B., Kumar, A., & Raghunathan, R. (2010, October). Confirmation Bias, Overconfidence, and Investment Performance: Evidence from Stock Message Boards. Social Science Research Network.
  • Park, J., Konana, P., Gu, B., Kumar, A., & Raghunathan, R. (2016, December ). Information Valuation and Confirmation Bias in Virtual Communities: Evidence from Stock Message Boards. Information Systems Research.
  • Pompian, M. L. (2006). Behvaioural finance and wealth management. John Wiley & Sons, Inc., Hoboken, New Jersey.
  • Rhee, H. S., Ryu, Y. U., & Kim, C. (2005). Optimistic Bias and Illusion of Control. ICIS. Proceedings of the International Conference on Information Systems, ICIS 2005, December 11-14, 2005, Las Vegas, NV, USA
  • Riaz, T., & Iqbal, H. (2015). Impact of Overconfidence, Illusion of control, Self Control and Optimism Bias on Investors Decision Making; Evidence from Developing Markets. Research Journal of Finance and Accounting, 6(11).
  • Rostami, M., & Dehaghani, D. Z. (2015). Impact of behavioral biases (overconfidence, ambiguity-aversion and lossaversion) on investment making decision in Tehran Stock Exchange. Journal of Scientific Research and Development, 2(4), 60-64.
  • Shefrin, H. (2000). Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing. Harvard Business School.
  • Shefrin, H. (2007). Behavioral Corporate Finance. Decisions that Create value. New York: McGraw- Hill.
  • Simon, H. A. (1959, June). Theories of Decision-Making in Economics and Behavioral Science. The American Economic Review, 49(3), 53-283.
  • Weinstein, N. D., Marcus, S. E., & Moser, R. P. (2005). Smokers' Unrealistic Optimism about Their Risk. Tobacco Control, 14(1), 55-59.

References

  • Alloy, L. B. (1981). Induced Mood and the Illusion of Control. Journal of Psychology,41(6), 1129-1140.
  • Bain, R. (2009). Error and optimism bias in toll road traffic forecasts. Transportation, 36, 469-482.
  • Barber, B. M., & Odean, T. (2001). Boys Will be Boys: Gender, Overconfidence, and Common Stock Investment. The Quarterly Journal of Economics, 116(1), 261-292.
  • Barberis, N., Shleifer, A., & Vishny, R. (1998). A model of investor sentiment. Journal of financial economics, 307- 343.
  • Bashir, T., Jamil, S., Anwar A., Afzaal, N., & Tariq, A., (2016). Influence of Investor's Personality Traits and Demographics on Overconfidence Bias, Self-Attribution Bias and Availability Bias. International Research Journal of Finance & Economics, 146.
  • Bashir, T., Javed, A., Usman, A., Meer, U. I., & Naseem, M. M. (2013). Empirical Testing of Heuristics Interrupting the Investor's Rational Decision Making. European Scientific Journal, 9(28).
  • Durand, R. (2003). Predicting a Firm's Forecasting Ability. Wiley, 29( 9), 821-838.
  • Gallimore, P. (1996). Confirmation bias in the valuation process: a test for corroborating evidence. Journal of Property Research, 261-273.
  • Grinblatt, M., & Keloharju, M. (2009). Sensation Seeking, Overconfidence, and Trading Activity. The Journal of Finance, 64(2), 549-578
  • Hill, C., Memon, A., & McGeorge, P. (2008). The role of confirmation bias in suspect interviews: A systematic evaluation. Journal of The British Psychological Society, 13, 357-371.
  • Iqbal, N. (2015). Impact of Optimism Bias on Investment Decision: Evidence from Islamabad Stock Exchange, Pakistan. Research Journal of Finance and Accounting, 6(19).
  • Jonas, E., Hardt, S. S., Frey, D., & Thelen, N. (2001). Confirmation Bias in Sequential Information Search after Preliminary Decisions: An Expansion of Dissonance Theoretical Research on Selective Exposure to Information. Journal of Personality and Social Psychology, 80(4), 557-571.
  • Jonas, E., Hardt, S. S., Frey, D., & Thelen, N. (2001). Confirmation Bias in Sequential Information Search after Preliminary Decisions: An Expansion of Dissonance Theoretical Research on Selective Exposure to Information. Journal of Personality and Social Psychology, 80(4), 557-571.
  • Jorgensen, M., Teigen, K. H., & Molokken, K. (2004). Better sure than safe? Overconfidence in Judgment based software development effort prediction intervals. Journal of Systems and Software.
  • Kahneman, D., & Riepe, M. W. (1998). Aspects of Investor Psychology. Journal of portfolio management, 24(4).
  • Koch, C. W., Köhler, A. G., & Yankova, K. (2016). Professional Skepticism and Auditor Judgment: Does Trait Skepticism Mitigate the Recency Bias?
  • Langer, E. J. (1975). Illusion of control. Journal of personality and social psychology, 32(2), 311-328.
  • Lin, H.-W. (2011, March). Elucidating rational investment decisions and behavioral biases: Evidence from the Taiwanese stock market. African Journal of Business Management, 1630-1641.
  • Montier, J. (2006, Febrary 02). Behaving Badly. Social Science Research Network
  • Murphy, J., Hofacker, C., & Mizerski, R. (2006). Primacy and recency effects on clicking behavior. Journal of Computer-Mediated Communication, 11(2), 522-535
  • Park, J., Konana, P., Gu, B., Kumar, A., & Raghunathan, R. (2010, October). Confirmation Bias, Overconfidence, and Investment Performance: Evidence from Stock Message Boards. Social Science Research Network.
  • Park, J., Konana, P., Gu, B., Kumar, A., & Raghunathan, R. (2016, December ). Information Valuation and Confirmation Bias in Virtual Communities: Evidence from Stock Message Boards. Information Systems Research.
  • Pompian, M. L. (2006). Behvaioural finance and wealth management. John Wiley & Sons, Inc., Hoboken, New Jersey.
  • Rhee, H. S., Ryu, Y. U., & Kim, C. (2005). Optimistic Bias and Illusion of Control. ICIS. Proceedings of the International Conference on Information Systems, ICIS 2005, December 11-14, 2005, Las Vegas, NV, USA
  • Riaz, T., & Iqbal, H. (2015). Impact of Overconfidence, Illusion of control, Self Control and Optimism Bias on Investors Decision Making; Evidence from Developing Markets. Research Journal of Finance and Accounting, 6(11).
  • Rostami, M., & Dehaghani, D. Z. (2015). Impact of behavioral biases (overconfidence, ambiguity-aversion and lossaversion) on investment making decision in Tehran Stock Exchange. Journal of Scientific Research and Development, 2(4), 60-64.
  • Shefrin, H. (2000). Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing. Harvard Business School.
  • Shefrin, H. (2007). Behavioral Corporate Finance. Decisions that Create value. New York: McGraw- Hill.
  • Simon, H. A. (1959, June). Theories of Decision-Making in Economics and Behavioral Science. The American Economic Review, 49(3), 53-283.
  • Weinstein, N. D., Marcus, S. E., & Moser, R. P. (2005). Smokers' Unrealistic Optimism about Their Risk. Tobacco Control, 14(1), 55-59.

Cite this article

APA

    APA : Bashir, T., Mehmood, F., & Khan, A. (2019). Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making. Global Social Sciences Review, IV(II), 51-59. https://doi.org/10.31703/gssr.2019(IV-II).07

CHICAGO

    CHICAGO : Bashir, Taqadus, Faisal Mehmood, and Altamash Khan. 2019. "Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making." Global Social Sciences Review, IV (II): 51-59 doi: 10.31703/gssr.2019(IV-II).07

HARVARD

    HARVARD : BASHIR, T., MEHMOOD, F. & KHAN, A. 2019. Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making. Global Social Sciences Review, IV, 51-59.

MHRA

    MHRA : Bashir, Taqadus, Faisal Mehmood, and Altamash Khan. 2019. "Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making." Global Social Sciences Review, IV: 51-59

MLA

    MLA : Bashir, Taqadus, Faisal Mehmood, and Altamash Khan. "Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making." Global Social Sciences Review, IV.II (2019): 51-59 Print.

OXFORD

    OXFORD : Bashir, Taqadus, Mehmood, Faisal, and Khan, Altamash (2019), "Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making", Global Social Sciences Review, IV (II), 51-59

TURABIAN

    TURABIAN : Bashir, Taqadus, Faisal Mehmood, and Altamash Khan. "Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making." Global Social Sciences Review IV, no. II (2019): 51-59. https://doi.org/10.31703/gssr.2019(IV-II).07