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Please use this identifier to cite or link to this item: http://hdl.handle.net/10400.5/3785

Title: Information, overconfidence and trading : do the sources of information matter?
Authors: Abreu, Margarida
Mendes, Víctor
Keywords: Information
Overconfidence
Investor behaviour
Trading
Sources of information
Issue Date: 2011
Publisher: ISEG - Departamento de Economia
Citation: Abreu, Margarida e Victor Mendes. 2011. "Information, overconfidence and trading : Do the sources of information matter?". Instituto Superior de Economia e Gestão - DE working papers nº25/2011/DE/UECE
Series/Report no.: DE working papers;nº25/2011/DE/UECE
Abstract: We investigate how the strength of the positive association between frequency of trading and information acquisition is dependent on investors’ self‐confidence and on the sources of information used by investors. Our results confirm that the more frequently individual investors invest in information, the more they trade in financial products. Our results also confirm previous findings that overconfident investors, who show a better than average bias, trade more frequently. In this paper, we add to this literature by investigating if the strong and positive relationship between investment in information and intensity of trading in financial assets is sensitive to the sources of information used by investors, and if this influence is different for overconfident and non‐overconfident investors. We conclude that overconfident investors trade more frequently when they collect information directly using specialized sources and that nonoverconfident investors trade less frequently when they use professional advice from the bank/account manager.
URI: http://hdl.handle.net/10400.5/3785
ISSN: 0874-4548
Publisher version: https://aquila.iseg.utl.pt/aquila/getFile.do?method=getFile&fileId=241098&contentContextPath_PATH=/departamentos/ec/lateral/menu-working-papers/nova-serie/2011&_request_checksum_=40150f05137e2e23d0df7234c5495383b4804f7e
Appears in Collections:UECE - Documentos de Trabalho / UECE - Working Papers
DE - Documentos de trabalho / Working Papers

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