Overconfidence and trading volume

By Markus Glaser, Martin Weber. 2007

783 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance, General Decision Sciences

View Paper: https://www.semanticscholar.org/paper/3aac20fe408bc82f43b7dc70496457115a40150d

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Citations in the corpus

Investors’ trading activity: A behavioural perspective and empirical results (2011, background): “Glaser and Weber (2007) have concluded that “The higher the degree of overconfidence of an investor the higher her or his trading volume” (Glaser and Weber, 2007, 13).”
Institutional Investors, Past Performance, and Dynamic Loss Aversion (2009, result): “The risk reaction to gains is also consistent with an overconfidence explanation (Barber and Odean (2001), Glaser and Weber (2007)).”
Talk and Action: What Individual Investors Say and What They Do (2005, neutral): “Subsequent studies construct overconfidence measures from survey responses and relate them to the propensity to trade inferred from brokerage records (Glaser and Weber (2003)) or from a trading experiment (Biais et al. (2002)).”
Impact of herding behavior and overconfidence bias on investors’ decision-making in Pakistan (2019, neutral): “Glaser and Weber (2007) studied the impact of overconfidence on the trading volume by using questionnaire technique.”
Who Takes Risks When and Why: Determinants of Changes in Investor Risk Taking (2013, result): “This response rate is slightly lower but in the same ballpark as response rates in similar studies by Dorn and Huberman (2005) and Glaser and Weber (2007).”
True Overconfidence: The Inability of Rational Information Processing to Account for Apparent Overconfidence (2011, positive): “In the literature, it is related to excessive trading volume (Barber and Odean, 2000; Glaser and Weber, 2007; Odean, 1998), to the emergence of stock market bubbles (Scheinkman and Xiong, 2003; Shiller, 2002), to corporate investment decisions (Gervais, Heaton, and Odean, 2003; Malmendier and Tate,…”
Which Past Returns Affect Trading Volume (2009, positive): “Glaser and Weber (2007) measure various facets of overconfidence in a sample of online broker investors using a questionnaire.”
Who is the more overconfident trader? Individual vs. institutional investors (2011, result): “…overconfidence leads individual investors to trade too much and too speculatively is also empirically supported by several experimental studies (e.g., Von Holstein (1972), Biais, Hilton, Mazurier, and Pouget (2005), Glaser and Weber (2007), and Deaves, Lüders, and Luo (2009)). subsequent periods.”
Do investors exhibit behavioral biases in investment decision making? A systematic review (2018, methodology): “…multivariate regression is used by Demirer and Kutan (2006) to find the changes in returns in extreme market conditions in the Chinese stock market; Glaser and Weber (2007) used cross-sectional regression to show relation between trading volume measures and several explanatory variables like…”
Risk aversion vs. individualism: what drives risk taking in household finance? (2014, positive): “Glaser and Weber (2007) evidence that overconfident investors tend to believe that one has the skill to pick winning stocks with above-average returns. Pan and Statman (2009) maintain that highly overconfident people exhibit indeed more risk tolerance than less overconfident people.”
Psychology-based Models of Asset Prices and Trading Volume (2018, background): “Daniel 22See Glaser and Weber (2007) for additional evidence linking overconfidence to trading activity. et al. (1998, 2001) show that overconfidence also offers an explanation of some basic facts about asset prices.”