The research of the over-confidence effect in Taiwan stock market

• Main Authors: Chin-Hang Chu, 朱志航
• Other Authors: 任立中
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/09693485942749882036

碩士 === 國立臺灣大學 === 商學研究所 === 93 === This paper uses the account data for 2,000 households from a famous asset management company in Taiwan, developing the investment behavior structure of stock market investors. Specifically, we hope to test whether overconfidence can explain high trading levels and the resulting poor performance of individual investors. Empirical results show there’s no tendency for investors to be overconfident. However, people who have highest turnover rate earn less but those who trade less not earn more. In the stock-selecting analysis, the investors who have the abilities to select good stock may be a loser just because they trade too much. We also find the experience with investment in stock market not reduce the trading turnover.