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Overconfidence Bias across Countries: Evidence from South Asian Stock Market |
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| รหัสดีโอไอ | |
| Creator | Sami Uddin, Faid Gul, Fauzia Mubarik |
| Title | Overconfidence Bias across Countries: Evidence from South Asian Stock Market |
| Contributor | - |
| Publisher | TuEngr Group |
| Publication Year | 2564 |
| Journal Title | International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies |
| Journal Vol. | 12 |
| Journal No. | 7 |
| Page no. | 12A7U: 1-12 |
| Keyword | Anomaly, heuristics, Vector Autoregression, Granger causality test, Market reactions, Exogeneity Wald test Stock trading. |
| URL Website | http://TuEngr.com/Vol12_7.html |
| Website title | ITJEMAST V12(7) 2021 @ TuEngr.com |
| ISSN | 2228-9860 |
| Abstract | Overconfidence in investors is generally associated with stock valuations and stock trading. High trading volumes represent biased self-attribution and self-overconfidence. Moreover, biased self-attribution leads to varying levels of overconfidence as compared to previous market returns. We test this proposition in the south Asian stock markets (Karachi stock exchange (Pakistan), Dhaka stock exchange (Bangladesh), and Bombay stock exchange (India)) in contrast to the U.S stock market (the Dow Jones Industrial average). The sample comprises corresponding index values from 2009-2018. Using Vector Auto Regression (VAR) and Granger causality tests for our analysis, this study confirms that previous returns significantly cause excessive stock trading in Pakistani, Bangladeshi, and U.S stock markets when returns dispersion and returns volatility are controlled. |
