OVERCONFIDENCE BIAS EMPIRICAL EXAMINATION OF TRADING TURNOVER AND MARKET RETURNS

http://dx.doi.org/10.31703/gssr.2019(IV-II).50      10.31703/gssr.2019(IV-II).50      Published : Jun 2
Authored by : Syeda Faiza Urooj , Nosheen Zafar , Muzammal IlyasSindhu

50 Pages : 384-390

References

  • Abbes, M. B., Boujelbene, Y., Bouri, A. (2009). Overconfidence bias: Explanation of Market Anomalies French Market Case.Journal of Applied Economic Sciences, 4(1(7)), 12-25
  • Alicke, M. D., Debbie S. V., Matthew, H., & Olesya, G. (2001). The Better Than Myself Effect. Motivation and Emotion, 25(2001), 7-22.
  • Barber, B., & Odean, T. (2001). Boys will be Boys: Gender, Overconfidence and Common Stock Investment.Quarterly Journal of Economics, 116, 261-292.
  • Bem, D. J. (1965). An Experimental Analysis of Self-Persuasion. Journal of Experimental Social Psychology,1(3), 199-218
  • Benos, A. (1998). Aggressiveness and Survival of Overconfident Traders.Journal of Financial Markets, 1(3-4), 353- 383
  • Bessembinder, H., Chan, K., & Seguin, P.J. (1996). An Empirical Examination of Information, Differences of Opinion and Trading Activity. Journal of Financial Economics, 40(1), 105-134.
  • Cesarini, D., Sandewall, Ã. R., & Johannesson, M. (2006). Confidence Interval Estimation Tasks and the Economics of Overconfidence.Journal of Economic Behavior & Organization, 61, 453-470.
  • Chordia, T., Roll, R., & Subrahmanyam, A. (2000). Market Liquidity and Trading Activity.working paper, UCLA
  • Cremers, M., & Pareek, A. (2011). Can Overconfidence and Biased Self-Attribution Explain the Momentum, Reversal and Share Issuance Anomalies? Evidence from Short-Term Institutional Investors. Working Paper, October 2011
  • Daniel, K., David H., & Avanidhar, S. (1998). Investor Psychology and Security Market Under- and Overreactions. Journal of Finance, 53 (6), 1839-1885.
  • De Bondt, W., & Thaler, R. (1995). Financial Decision Making in Markets and Firms: A behavioral Perspective. Working Paper, No: 4777, The National Bureau of Economic Research, June 1994.
  • DeLong, J. B., Shleifer, A., Summers, L., & Waldman, R. (1990). Noise Trader Risk in Financial Markets.Journal of Political Econ, 98(4), 703-738
  • French, K. R., Schwert, G. W., & Stambaugh, R. F. (1987). Expected Stock Returns and Volatility. Journal of Financial Economics, 19, 3-29
  • Gervais, S., & Odean, T. (2001). Learning to be Overconfident.The Review of Financial Studies, 14 (1), 1-27
  • Hirshliefer, D. A. (2001). Investor Psychology and Asset Pricing.Journal of Finance, 56 (4), 1533-1597
  • Karpoff, J. M. (1987). The Relation between Price Changes and Trading Volume: A Survey. Journal of Financial and Quantitative Analysis, 22 (1), 109-126.
  • Kyle, A. S., Wang, F. A. (1997). Speculation Duopoly With Agreement to Disagree: Can Overconfidence Survive the Market Test?.Journal of Finance, 52 (5), 2073-2090.
  • Langer, E. J. (1975). The Illusion of Control. Journal of Personality and Social Psychology, 32(2), 311-328
  • Langer, E. J., & Roth, J. (1975). Heads I Win Tails it's Chance: The Illusion of Control as a Function of the Sequence of Outcomes in a Purely Chance Task. Journal of Personality and Social Psychology, 32 (6), 951-955.
  • Lee, C. M. C., & Swaminathan, C. (2000). Price Momentum and Trading Volume. The Journal of Finance, 55 (5), 2017-2069.
  • Liorente, G., Michaely, R., Saar, G., & Wang, J. (2002). Dynamic Volume-Return Relation of Individual Stocks. The Review of Financial Studies, 15 (4), 1005-1047
  • Lo, A., & Wang, J. (2000). Trading Volume: Definitions, Data Analysis, and Implications of Portfolio Theory. The Review of Financial Studies, 13 (2), 257-300.
  • Miller, D. T., & Ross, M. (1975). Self-Serving Biases in the Attribution of Causality: Fact or Fiction?.Psychological Bulletin, 82 (2), 213-225.
  • Odean, T. (1998). Volume, Volatility, Price, and Profit When All Traders are Above Average. Journal of Finance, 53(6), 1887-1934.
  • Soll, J. B., & Klayman, J. (2004). Overconfidence in Interval Estimates. Journal of Experimental Psychology: Learning, Memory, and Cognition, 30 (2), 299-314.
  • Statman, M., Thorley, S., & Vorkink, K. (2004). Investor Overconfidence and Trading Volume. Review of Financial Studies, 19(4), 1531 - 1565
  • Taylor, S., & Brown, J. (1988). Illusion and Well Being:A Social Psychological Perspective on Mental Health. Psychological Bulletin, 103, 193-210.
  • Wouters, T. (2006). Style Investing: Behavioral Explanations of Stock Market Anomalies. University Library Groning

References

  • Abbes, M. B., Boujelbene, Y., Bouri, A. (2009). Overconfidence bias: Explanation of Market Anomalies French Market Case.Journal of Applied Economic Sciences, 4(1(7)), 12-25
  • Alicke, M. D., Debbie S. V., Matthew, H., & Olesya, G. (2001). The Better Than Myself Effect. Motivation and Emotion, 25(2001), 7-22.
  • Barber, B., & Odean, T. (2001). Boys will be Boys: Gender, Overconfidence and Common Stock Investment.Quarterly Journal of Economics, 116, 261-292.
  • Bem, D. J. (1965). An Experimental Analysis of Self-Persuasion. Journal of Experimental Social Psychology,1(3), 199-218
  • Benos, A. (1998). Aggressiveness and Survival of Overconfident Traders.Journal of Financial Markets, 1(3-4), 353- 383
  • Bessembinder, H., Chan, K., & Seguin, P.J. (1996). An Empirical Examination of Information, Differences of Opinion and Trading Activity. Journal of Financial Economics, 40(1), 105-134.
  • Cesarini, D., Sandewall, Ã. R., & Johannesson, M. (2006). Confidence Interval Estimation Tasks and the Economics of Overconfidence.Journal of Economic Behavior & Organization, 61, 453-470.
  • Chordia, T., Roll, R., & Subrahmanyam, A. (2000). Market Liquidity and Trading Activity.working paper, UCLA
  • Cremers, M., & Pareek, A. (2011). Can Overconfidence and Biased Self-Attribution Explain the Momentum, Reversal and Share Issuance Anomalies? Evidence from Short-Term Institutional Investors. Working Paper, October 2011
  • Daniel, K., David H., & Avanidhar, S. (1998). Investor Psychology and Security Market Under- and Overreactions. Journal of Finance, 53 (6), 1839-1885.
  • De Bondt, W., & Thaler, R. (1995). Financial Decision Making in Markets and Firms: A behavioral Perspective. Working Paper, No: 4777, The National Bureau of Economic Research, June 1994.
  • DeLong, J. B., Shleifer, A., Summers, L., & Waldman, R. (1990). Noise Trader Risk in Financial Markets.Journal of Political Econ, 98(4), 703-738
  • French, K. R., Schwert, G. W., & Stambaugh, R. F. (1987). Expected Stock Returns and Volatility. Journal of Financial Economics, 19, 3-29
  • Gervais, S., & Odean, T. (2001). Learning to be Overconfident.The Review of Financial Studies, 14 (1), 1-27
  • Hirshliefer, D. A. (2001). Investor Psychology and Asset Pricing.Journal of Finance, 56 (4), 1533-1597
  • Karpoff, J. M. (1987). The Relation between Price Changes and Trading Volume: A Survey. Journal of Financial and Quantitative Analysis, 22 (1), 109-126.
  • Kyle, A. S., Wang, F. A. (1997). Speculation Duopoly With Agreement to Disagree: Can Overconfidence Survive the Market Test?.Journal of Finance, 52 (5), 2073-2090.
  • Langer, E. J. (1975). The Illusion of Control. Journal of Personality and Social Psychology, 32(2), 311-328
  • Langer, E. J., & Roth, J. (1975). Heads I Win Tails it's Chance: The Illusion of Control as a Function of the Sequence of Outcomes in a Purely Chance Task. Journal of Personality and Social Psychology, 32 (6), 951-955.
  • Lee, C. M. C., & Swaminathan, C. (2000). Price Momentum and Trading Volume. The Journal of Finance, 55 (5), 2017-2069.
  • Liorente, G., Michaely, R., Saar, G., & Wang, J. (2002). Dynamic Volume-Return Relation of Individual Stocks. The Review of Financial Studies, 15 (4), 1005-1047
  • Lo, A., & Wang, J. (2000). Trading Volume: Definitions, Data Analysis, and Implications of Portfolio Theory. The Review of Financial Studies, 13 (2), 257-300.
  • Miller, D. T., & Ross, M. (1975). Self-Serving Biases in the Attribution of Causality: Fact or Fiction?.Psychological Bulletin, 82 (2), 213-225.
  • Odean, T. (1998). Volume, Volatility, Price, and Profit When All Traders are Above Average. Journal of Finance, 53(6), 1887-1934.
  • Soll, J. B., & Klayman, J. (2004). Overconfidence in Interval Estimates. Journal of Experimental Psychology: Learning, Memory, and Cognition, 30 (2), 299-314.
  • Statman, M., Thorley, S., & Vorkink, K. (2004). Investor Overconfidence and Trading Volume. Review of Financial Studies, 19(4), 1531 - 1565
  • Taylor, S., & Brown, J. (1988). Illusion and Well Being:A Social Psychological Perspective on Mental Health. Psychological Bulletin, 103, 193-210.
  • Wouters, T. (2006). Style Investing: Behavioral Explanations of Stock Market Anomalies. University Library Groning

Cite this article

APA

    APA : Urooj, S. F., Zafar, N., & Sindhu, M. I. (2019). Overconfidence Bias: Empirical Examination of Trading Turnover and Market Returns. Global Social Sciences Review, IV(II), 384-390. https://doi.org/10.31703/gssr.2019(IV-II).50

CHICAGO

    CHICAGO : Urooj, Syeda Faiza, Nosheen Zafar, and Muzammal Ilyas Sindhu. 2019. "Overconfidence Bias: Empirical Examination of Trading Turnover and Market Returns." Global Social Sciences Review, IV (II): 384-390 doi: 10.31703/gssr.2019(IV-II).50

HARVARD

    HARVARD : UROOJ, S. F., ZAFAR, N. & SINDHU, M. I. 2019. Overconfidence Bias: Empirical Examination of Trading Turnover and Market Returns. Global Social Sciences Review, IV, 384-390.

MHRA

    MHRA : Urooj, Syeda Faiza, Nosheen Zafar, and Muzammal Ilyas Sindhu. 2019. "Overconfidence Bias: Empirical Examination of Trading Turnover and Market Returns." Global Social Sciences Review, IV: 384-390

MLA

    MLA : Urooj, Syeda Faiza, Nosheen Zafar, and Muzammal Ilyas Sindhu. "Overconfidence Bias: Empirical Examination of Trading Turnover and Market Returns." Global Social Sciences Review, IV.II (2019): 384-390 Print.

OXFORD

    OXFORD : Urooj, Syeda Faiza, Zafar, Nosheen, and Sindhu, Muzammal Ilyas (2019), "Overconfidence Bias: Empirical Examination of Trading Turnover and Market Returns", Global Social Sciences Review, IV (II), 384-390

TURABIAN

    TURABIAN : Urooj, Syeda Faiza, Nosheen Zafar, and Muzammal Ilyas Sindhu. "Overconfidence Bias: Empirical Examination of Trading Turnover and Market Returns." Global Social Sciences Review IV, no. II (2019): 384-390. https://doi.org/10.31703/gssr.2019(IV-II).50