Investigation of investors' overconfidence, familiarity and socialization

Accounting and Finance

Volumn 45, Issue 2, 2005, Pages 283-300

  Tourani Rad, Alireza ^a   Kirkby, Stephen ^a  

^a AUCKLAND UNIVERSITY OF TECHNOLOGY   (New Zealand)

Author keywords

Behavioural finance; Familiarity effects; Overconfidence; Socialization

Indexed keywords

EID: 27944439349     PISSN: 08105391     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.1467-629x.2004.00131.x     Document Type: Article

References (29)

1. A'Court, S., 2001, 2001 Household savings survey, Household Economics Division of Statistics New Zealand, Wellington, New Zealand, 1-4.
2. Asch, S., 1956, Studies of independence and conformity: a minority of one against an unanimous majority, Psychological Monographs 70, 416.
3. Barber, B., and T. Odean, 1999, The courage of misguided convictions, Financial Analysts Journal 55, 41-55.
4. Barber, B., and T. Odean, 2000, Trading is hazardous to your wealth: the common stock investment performance of individual investors, Journal of Finance 55, 773-806.
5. Barber, B., and T. Odean, 2001, Boys will be boys: gender, overconfidence, and common stock investment, The Quarterly Journal of Economics 116, 261-292.
6. Beyer, S., 1990, Gender differences in the accuracy of self-evaluations of performance, Journal of Personality and Social Psychology 59, 960-970.
7. Coval, J. D., and T. J. Moskowitz, 1997, The geography of investment: are there gains to investing locally? Working paper (UCLA, Los Angeles, CA).
8. Coval, J. D., and T. J. Moskowitz, 1999, Home bias at home: local equity preference in domestic portfolios, Journal of Finance 54, 1-39.
9. De Bondt, W. F. M., 1998, A portrait of the individual investor, European Economic Review 42, 831-844.
10. De Bondt, W. F. M., and R. Thaler, 1995, Financial decision-making in markets and firms: a behavioural perspective, in: A. Robert Jarrow, V. Maksimovic and W. T. Ziemba, eds, Handbook of Operations Research and Management Science, vol. 9, 385-410.
11. DiFonzo, N., and P. Bordia, 1997, Rumor and prediction: making sense (but losing dollars) in the stock market, Organisational Behavior and Human Decision Processes, 329-353.
12. Driscoll, K., M. Malcolm, M. Sirull, and P. Slotter, 1995, 1995 Gallop Survey of Defined Contribution Plan Participants, John Hancock Financial Services, November.
13. Fischhoff, B., S. Lichteinstein, P. Slovic, S. C. Derby, and R. L. Keeney, 1981, Acceptable Risk (Cambridge University Press, Cambridge).
14. Fischhoff, B., P. Slovic, and S. Lichtenstein, 1977, Knowing with certainty: the appropriateness of extreme confidence, Journal of Experimental Psychology, Human Precision and Performance 4, 552-564.
15. Gervais, S., and T. Odean, 2001, Learning to be overconfident, Review of Financial Studies 14, 1-27.
16. Heath, C., and A. Tversky, 1991, Preference and belief: ambiguity and competence in choice under uncertainty, Journal of Risk and Uncertainty 4, 5-28.
17. Hirshleifer, D., 1993, The blind leading the blind: social influence, fads, and informational cascades, Working paper 24-93 (Anderson School at UCLA, Los Angeles, CA).
18. Huberman, G., 2001, Familiarity breeds investment, The Review of Financial Studies 14, 659-680.
19. Kahneman, D., and A. Tversky, 1979, Prospect theory: an analysis of decision under risk, Econometrica 47, 263-291.
20. Kilka, M., and M. Weber, 1997, Home bias in international stock return expectations, Working paper (Universität Mannheim, Mannheim, Germany).
21. Lally, M., and A. Marsden, 2002, Historical market risk premium in New Zealand: 1931-2000, Working paper (Victoria University of Wellington, New Zealand).
22. Langevoort, D. C., 2001, Taming the animal spirits of the stock markets: a behavioral approach to securities regulation, Northwestern University Law Review, in press.
23. Nofsinger, J. R., 2002, The Psychology of Investing (Prentice Hall, New Jersey).
24. Odean, T., 1998a, Are investors reluctant to realise their losses? Journal of Finance 53, 1775-1798.
25. Odean, T., 1998b, Volume, volatility, price, and profit when all traders are above average, Journal of Finance 53, 1887-1934.
26. Rashes, M., 2001, Massively confused investors making conspicuously ignorant choices, Journal of Finance 56, 1911-1927.
27. Schiller, R. J., 2000, Conversation, information and herd behavior, American Economic Review 85, 181-185.
28. Strong, N., and X. Xu, 1999, Understanding the home equity bias: evidence from survey data, Working paper (University of Manchester, Manchester, UK).
29. Tourani-Rad, A., E. Vos, and P. Webber, 1999, Test of the Diversification Benefits of Multinational Companies in a New Zealand Based Portfolio, Advances in Pacific Basin Financial Markets, vol. 5 (JAI Press Inc, Stamford, CT).