An Analysis on the Investor’s Decision-making at the Stock Market in Taiwan─A Case Study of Over-confidence

• Main Authors: Li-cheng Chin, 鄭麗卿
• Other Authors: Ming-jui Hsieh
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/66721888608796983237

碩士 === 佛光大學 === 經濟學系 === 98 === An Analysis on the Investor’s Decision-making at the Stock Market in Taiwan─A Case Study of Over-confidence Student: Li-cheng Chin Advisor: Ming-jui Hsieh Abstract In the economic society with seriously competition, investors must be adopt the proper investment tool in order to achieve the maximum profit subject to the limited income, however, the price changes on the stock market was influenced by those factors such as the politics, economy, psychology, policy…etc.,, therefore, though investors have a lot of tools for managing money matters, but the failing example of making investment is repeating and appearing constantly, because most of the investors do not make the reasonable policy according to the theory of utility maximization, but was influenced by those of unreasonable emotions such as the over confidence, optimism, attribution theory…etc., this essay pay attention to investors' over-confidence in this research, and to explain the irrational behavior of the investment decision, and the impact on investment decision. The feature of humans psychological decision making is gradually founded in the long-term process of evolution, so it is considerably stable and has not obvious difference in the longer time.Therefore,if investors want to conquer the market, they must overcome their cognitive bias and psychological obstacles. By discussing the theory of behavioral finance, we can understand investors deviant behavior. Investors can not only fix deviant decisions by that but reach the goal of acquiring long-term profit by making use of peoples deviant behaviors. Furthermore, after understanding investors bias of behavior ,we hope that it can help investors face what they encounter in the strategy of investment by rational attitude through related financial education. I believe that this is one of the main purposes of the development of behavioral finance to help investors understand themselves, others and the market. Facing the systematic bias revealed in what mentioned above, they can not only consciously avoid being misleaded by various psychological bias but previously obtain excessive profit by making use of many kinds of strategies of behavioral investment. On the other hand, it can provide an opportunity of obtaining excessive profit for investors who understand the markets bias. Key words : Over-confident Efficiency market Prospect theory Reference point