An empirical evaluation of the overconfidence hypothesis

Chuang, Wen-I; Lee, Bongsoo

doi:10.1016/j.jbankfin.2005.08.007

Cited by 203 publications

(204 citation statements)

References 96 publications

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“…They suggested that students motivated by their parents and their society to consider themselves better than others. Chuang and Lee (2006) provided some evidence on the existence of overconfidence in capital markets. They showed that overconfident investors react to private information.…”

Section: Literature Reviewmentioning

confidence: 99%

Narcissism in Iranian auditing profession

Banimahd¹,

Dilami²,

Javanmard³

2013

10.5267/j.msl

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This study investigates the level of Narcissism among 185 Iranian auditors groups and narcissism has been used to describe people behavior in people groups. The present study uses a questionnaire to measure Narcissism and to examine the hypotheses of the paper analysis of variance and T-test are used. The results of testing hypotheses show that the level of narcissism was significantly different in auditors groups in private sector. However, in public sector, the difference between narcissistic personality in auditors' groups is not significant. Results of the study also indicated that, in private sector, narcissistic personality in young generation of auditors was higher than audit old generation. These results confirm previous studies on narcissism indicating that narcissistic behavior was high among young generation. We suggest the Iranian association of certified public accountants (IACPA) to review the ethical training needs for auditors. In addition, audit firms can provide a system to increase interaction among old generations of auditors with young generation of auditors.

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Section: Literature Reviewmentioning

confidence: 99%

Narcissism in Iranian auditing profession

Banimahd¹,

Dilami²,

Javanmard³

2013

10.5267/j.msl

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“…The excessive trading volume of overconfident investors contributes to excessive volatility. Chuang and Lee [15] provided an empirical structure to identify if excessive volatility is caused by overconfidence of investors.…”

Section: Introductionmentioning

confidence: 99%

“…Their theoretical models stipulate that if investors are overconfident, they take more risky positions than they were rational. Chuang and Lee [15] found that if investors are overconfident they exchange in more risky securities following market gain.…”

Section: Introductionmentioning

confidence: 99%

An Experimental Analysis of Over-Confidence

Jemaiel¹,

Chokri²,

Seddiki³

2013

AJIBM

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The purpose of this paper is to experimentally demonstrate the existence of the bias of over-confidence as a human psychological bias. This bias was measured by three methods: the estimation interval, the frequency estimation method and the method of question with two answer choices. The estimation interval method finds a very wide bias compared to the other two methods, but overconfidence persists in the other two methods at lower levels. In the first experiment, monetary incentives have exacerbated the over-confidence because of the given compensation. This system has demonstrated that there is a strong link between over-confidence and risk taking. The second experiment that used the method of question with two answer choices was given a different pay system and it was expected that overconfidence will be reduced by monetary incentives but the results show that the bias is not significantly reduced by these new monetary incentives. Similarly, the iteration that was made during the first experiment did not significantly reduce the bias.

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“…In …nance, papers include Barber and Odean (2001), Bernardo and Welch (2001), Chuang and Lee (2006), Daniel, Hirshleifer and Subrahmanyam (2001), Kyle and Wang (1997), Malmendier and Tate (2005), Peng and Xiong (2006), and Wang (2001). See Benoît and Dubra (2008) for a discussion of some of the literature.…”

Section: Introductionmentioning

confidence: 99%