Sensation Seeking, Overconfidence, and Trading Activity

By Mark Grinblatt, Matti Keloharju. 2009

787 citations recorded by the source corpus.

Subfields: Clinical Psychology, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/d8997d4e2c824480d78009c392a63062769c368e

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Citations in the corpus

Speculative Retail Trading and Asset Prices (2013, neutral): “, Kumar (2009), Dorn and Huberman (2010)).”
Do Individual Investors Treat Trading as a Fun and Exciting Gambling Activity? Evidence from Repeated Natural Experiments (2015, positive): “Meanwhile, evidence is accumulating that psychological attributes such as gambling, sensationseeking, and entertainment can impact individual investors trading behavior in the United States, (e.g., Kumar 2009), in Finland (Grinblatt and Keloharju 2009), and in Germany (Dorn and Sengmueller 2009). at”
Why Don't We Agree? Evidence from a Social Network of Investors (2019, positive): “In particular, this literature has identified numerous behavioral rationales for overtrading, including entertainment, sensation seeking, gambling, and learning by doing (Dorn and Sengmueller, 2009; Grinblatt and Keloharju, 2009; Kumar, 2009; Linnainmaa, 2011).”
Investors’ trading activity: A behavioural perspective and empirical results (2011, background): “Deaves et al. (2003), and Grinblatt and Keloharju (2009) for example, have documented that overconfidence causes additional trading frequency.”
Do Portfolio Distortions Reflect Superior Information or Psychological Biases? (2013, positive): “Using Finnish data, Grinblatt and Keloharju (2009) show that overconfident and sensation-seeking investors trade more frequently.”
Effects of culture on firm risk-taking: a cross-country and cross-industry analysis (2012, neutral): “When individuals are too confident in their abilities, they tend to overestimate the accuracy of their predictions and to be excessively secure in their estimates of parameters, such as the future return of a stock (Van den Steen 2004; Grinblatt and Keloharju 2009).”
Are Retail Traders Compensated for Providing Liquidity (2016, neutral): “The data used in either Kaniel, Saar, and Titman (2008) or Kelley and Tetlock (2013) were not suited to answer this question, as those data sets do not make it possible to track individual orders.”
Which Past Returns Affect Trading Volume (2009, neutral): “Grinblatt and Keloharju (2006) analyze the logarithm of the number of trades and turnover.”
Behavioral Finance: Finance with Normal People (2014, background): “Grinblatt and Keloharju (2009) found that heavy traders in Finland also tend to be fast drivers, accumulating many speeding tickets.”