The impact of the 2007 reforms on the level of information disclosure by the Chinese A-share market

Gong, Rong; Marsden, Alastair

doi:10.1016/j.chieco.2014.07.001

Cited by 7 publications

(1 citation statement)

References 35 publications

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“…Several studies on overconfidence among Chinese investors exist, but studies on the relationship between overconfidence and trading volume are relatively rare and are largely theoretical, with few empirical studies having been conducted. Gong and Marsden (2014) developed a VAR model and found that investors in the Chinese A‐share market overreact to private information and underreact to public information, thus suffering from overconfidence. Liikkanen and Aman (2015) theoretically demonstrated that when investors are overconfident, trade in the market is magnified, even if the information is symmetrical.…”

Section: Literature Reviewmentioning

confidence: 99%

Gauging the effect of investor overconfidence on trading volume from the perspective of the relationship between lagged stock returns and current trading volume

Huang

Wang

Fan

et al. 2022

International Finance

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Is investor overconfidence a major source of stock‐market trading volume? This study refers to the work of Grossman and Odean, introduces the assumption of investor overconfidence and empirically examines the influence of investor overconfidence on market trading volume in China's A‐share market through a vector autoregressive model estimation and Granger causality test. We find that overconfidence and self‐attribution exist in China's A‐share market. When the market is on an upswing, investors attribute large returns to the accuracy of their private information and the quality of their investment abilities; thus they trade more frequently, causing trading volume to increase more quickly. Conversely, when the market is on a downswing, investors attribute their investment losses to uncontrollable external factors; thus they become unwilling to trade, causing trading volume to shrink rapidly.

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Section: Literature Reviewmentioning

confidence: 99%