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Existence of overconfidence bias among investors and its impact on investment decisions in Nepalese stock market / Nisha Bam
Title : Existence of overconfidence bias among investors and its impact on investment decisions in Nepalese stock market Material Type: printed text Authors: Nisha Bam, Author Publication Date: 2019 Pagination: 108p. Size: GRP/Thesis Accompanying material: 1st/Gmba Languages : English Abstract: This study evaluates the existence and extent of behavioural biases more precisely overconfidence that investors have to face at the time of decision making. Behavioural bias is defined as a pattern of variation in judgment that occurs in particular situations, which may sometimes lead to perceptual alteration, inaccurate judgment, illogical interpretation, or what is largely called irrationality. Similarly, overconfidence bias is a fundamental bias in behavioural finance which reflects the tendency to overestimate or exaggerate one’s ability to successfully perform a given task, and it is a trait that is common among people in all professions and areas.
This research used conclusive research design which uses quantitative data analysis to meet the objective. It studied about the relationship between different independent factors and investment decision of investors regarding existence of overconfidence bias among investors and its impact on investment decision. On the other part, it studied about the relationship between different demographic factors and investment decision. The sample size of 160 has been taken to carry out the research. The data analysis found that two independent variables i.e. Miscalibration and Trading experience from the quantitative session has impact on investment decision (dependent variable). Again, two demographic variables i.e. age and education has significant impact on investment decision.
Therefore, the study concludes that overconfidence exists in investors while taking investment decisions. It is evident that investors are overconfident about their knowledge, ability to pick stocks. Similarly, it also has been observed that investors generally rate themselves better than average. The investors assume that they have accurate information and are smarter than other. This research provides insight to the investors and financial advisors that help them to understand psyche behind the investment decisions. Investors can understand the variables of overconfidence that influence their investment decisions and where do they go wrong. Future research can be carried out by including other aspect of behavioural biases which is not included on this research for getting more reliable result of psychological biases and its impact on investment decision.
Existence of overconfidence bias among investors and its impact on investment decisions in Nepalese stock market [printed text] / Nisha Bam, Author . - 2019 . - 108p. ; GRP/Thesis + 1st/Gmba.
Languages : English
Abstract: This study evaluates the existence and extent of behavioural biases more precisely overconfidence that investors have to face at the time of decision making. Behavioural bias is defined as a pattern of variation in judgment that occurs in particular situations, which may sometimes lead to perceptual alteration, inaccurate judgment, illogical interpretation, or what is largely called irrationality. Similarly, overconfidence bias is a fundamental bias in behavioural finance which reflects the tendency to overestimate or exaggerate one’s ability to successfully perform a given task, and it is a trait that is common among people in all professions and areas.
This research used conclusive research design which uses quantitative data analysis to meet the objective. It studied about the relationship between different independent factors and investment decision of investors regarding existence of overconfidence bias among investors and its impact on investment decision. On the other part, it studied about the relationship between different demographic factors and investment decision. The sample size of 160 has been taken to carry out the research. The data analysis found that two independent variables i.e. Miscalibration and Trading experience from the quantitative session has impact on investment decision (dependent variable). Again, two demographic variables i.e. age and education has significant impact on investment decision.
Therefore, the study concludes that overconfidence exists in investors while taking investment decisions. It is evident that investors are overconfident about their knowledge, ability to pick stocks. Similarly, it also has been observed that investors generally rate themselves better than average. The investors assume that they have accurate information and are smarter than other. This research provides insight to the investors and financial advisors that help them to understand psyche behind the investment decisions. Investors can understand the variables of overconfidence that influence their investment decisions and where do they go wrong. Future research can be carried out by including other aspect of behavioural biases which is not included on this research for getting more reliable result of psychological biases and its impact on investment decision.
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Barcode Call number Media type Location Section Status 610/D NIS Thesis/Dissertation Uniglobe Library Philosophy & Psychology Available