Investor Overconfidence and Trading Activity in the Asia Pacific REIT Markets

Bao, Helen X. H.; Li, Steven Haotong

doi:10.3390/jrfm13100232

Cited by 8 publications

(5 citation statements)

References 50 publications

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“…However, the intricacies of overconfidence bias become more apparent within changing market contexts. Analysis by X. H. Bao & Li (2020) reveals that the effects of overconfidence bias tend to be more pronounced during market booms or in inefficient market conditions. this study also highlights that overconfidence bias can lead to excessive trading activity, potentially impacting market equilibrium significantly.…”

Section: Overconfidence Biasmentioning

confidence: 99%

A Literature Review on the Influence of Availability Bias and Overconfidence Bias on Investor Decisions

Rahmawati,

Santi

2023

EAJMR

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This research examines the impact of Availability Bias and Overconfidence Bias on investment decisions. Utilizing a literature review approach and VOSviewer analysis, this study explores how these biases affect investor decision-making processes and potential mitigation strategies. The objective is to highlight the significance of understanding and mitigating these biases in achieving more rational investment decisions. The findings underscore the potential negative effects of both biases, leading to overconfident and less rational investment decisions. Awareness of their interplay is crucial, as they reinforce each other's negative effects on investment decision-making. Overcoming these cognitive biases is essential for more effective investment decision-making. This research contributes insights into mitigating biases, aiding in a more balanced and rational approach to investment decision-making.

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Section: Overconfidence Biasmentioning

confidence: 99%

A Literature Review on the Influence of Availability Bias and Overconfidence Bias on Investor Decisions

Rahmawati,

Santi

2023

EAJMR

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“…Glaser and Weber (2009) show that excessive stock market trading volume results from overconfidence bias. Bao and Li (2020) showed evidence for the same in the real estate investment trusts (REITs) market of certain Asian countries, while Kudryavtsev (2017) and Bharandev and Rao (2021) contributed to this strand of literature by showing the impact of anchoring bias and disposition effect on trading volume. Behavioral biases also lead to excess volatility (Lam et al, 2010(Lam et al, , 2012Zhan, 2019).…”

Section: Behavioralmentioning

confidence: 99%

A bibliometric visualization of behavioral biases in investment decision-making

Dhingra,

Yadav,

Saini

et al. 2023

QRFM

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Purpose This study aims to conduct a bibliometric analysis to provide a comprehensive picture and identify future research directions to enrich the existing literature on behavioral biases. Design/methodology/approach The data set comprises 518 articles from the Web of Science database. Performance analysis is used to highlight the significant contributors (authors, institutions, countries and journals) and contributions (highly influential articles) in the field of behavioral biases. In addition, network analysis is used to delve into the conceptual and social structure of the research domain. Findings The current review has identified four major themes: “Influence of behavioral biases on investment decisions,” “Determinants of home bias,” “Impact of biases on stock market variables” and “Investors’ decision-making under uncertainty.” These themes reveal that a majority of studies have focused on equity markets, and research on other asset classes remains underexplored. Research limitations/implications This study extracted data from a single database (Web of Science) to ensure standardization of results. Consequently, future research could broaden the scope of the bibliometric review by incorporating multiple databases. Originality/value The novelty of this research is to provide valuable guidance by evaluating the existing literature and advancing the knowledge base on the conceptual and social structure of behavioral biases.

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“…According to Ady et al (2020), the characteristics of investors who are overconfident are generally young investors, have sufficient income, and have low literacy comprehension. If someone tends to have more confidence in the decisions they make, then that person will underestimate or not pay attention to the risks they face (Bao & Li, 2020;Salasiah et al, 2021).…”

Section: Literature Review Overconfidence Attitude and Investor Decisionmentioning

confidence: 99%

Examining the predictors of crypto investor decision

Syarkani

Tristanto

2022

IJRBS

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The rise in the cryptocurrency market has led many individuals to start their investment. However, individuals are affected by several factors in their decision-making process to invest. The objective of this study is to examine the factors that can predict the decision to invest in the cryptocurrency market, by utilizing the variables of overconfidence, financial literacy, and attitude. This study also explores the role of attitude in mediating the influence of overconfidence and financial literacy on investor decisions. The population of this study is individual student investors in three top universities in Indonesia. This study uses a non-probability sampling technique, with purposive sampling that includes several criteria to determine the number of samples. The data is collected by distributing questionnaires to the students using Google Forms. The total number of respondents in this study, who returned the questionnaire that has been filled is 297 students. The data obtained from respondents is analyzed using Structural Equation Modeling with Partial Least Square (SEM-PLS). Finally, the results of this study have proved that: (1) Overconfidence has a positive influence on attitude; (2) Financial literacy has a positive influence on attitude; (3) Overconfidence has a positive influence on investor decision; (4) Financial literacy has a positive influence on investor decision; (5) Attitude has a positive influence on investor decision; (6) Attitude mediates the influence of overconfidence on investor decision; and (7) Attitude mediates the influence of overconfidence on investor decision. The implications for scholars and crypto investors are also provided in this study.

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Investor Overconfidence and Trading Activity in the Asia Pacific REIT Markets

Cited by 8 publications

References 50 publications

A Literature Review on the Influence of Availability Bias and Overconfidence Bias on Investor Decisions

A Literature Review on the Influence of Availability Bias and Overconfidence Bias on Investor Decisions

A bibliometric visualization of behavioral biases in investment decision-making

Examining the predictors of crypto investor decision

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