A Study of Existence of Overconfidence Biases among Investors and Its Impact on Investment Decision
Bhoomika Trehan (Author), Dr Amit Kumar Sinha (Other)
In current scenario, behavioral finance plays an important role in investment decision making. Investment decision has become a complex decision with the availability of investment choices, accessibility of information and increased size of the market. There are various options or choices available for the investors in the market while taking investment decisions. Decision making means final selection of the best alternatives which are available for the investors in the market; some investment decision are easy and other investment decision are the complex overconfidence bias among the investors of Lucknow. Overconfidence variables were identified with extensive literature review as selfattribution, optimism, better than average effect, miscalibration, illusion of control, trading frequency and trading experience. To identify the influence of these variables in investor's decision making, structured questionnaire based on 5 point Likert Scale was used. With relevant statistical tools, it was found that investors are overconfident about their investment decisions, skills, knowledge, ability to choose stocks, control of portfolio, future investment plans and views about the stock market. and require the multiple approach
eBook, English, 2018
SSRN, [S.l.], 2018