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Are Amman Stock Exchange Investors Overconfident?

Author

Listed:
  • Abu Khalaf K. Bashar

    (School of Business, The University of Jordan, Jordan,)

  • Firas Y. Hammash

    (The University of Jordan, Amman, Jordan)

Abstract

This study highlights the factors that affect investors' overconfidence. Since the overconfidence is considered one of the major psychological traits that impact the investment decision in Amman stock exchange (ASE), the importance of this study emerge through the importance of the investment decision itself. Accordingly, this paper studies overconfidence and number of its originators through structured questionnaire. The six factors we focus on include experience, financial knowledge, academic qualifications, opinions of financial advisors, and past performance of the stock. We randomly manage to get 250 respondents' sample of ASE traders. The results indicate that the investor overconfident is significantly increased by experience and financial knowledge factors.

Suggested Citation

  • Abu Khalaf K. Bashar & Firas Y. Hammash, 2017. "Are Amman Stock Exchange Investors Overconfident?," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 7-10.
    • Handle: RePEc:eco:journ1:2017-02-02
    as

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    References listed on IDEAS

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    Cited by:

    1. Manda, Vijaya Kittu & Sana, Alekhya, 2021. "Impact Of Mental Health And Well-Being Of Indian Stock Market Traders," MPRA Paper 109941, University Library of Munich, Germany.

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    More about this item

    Keywords

    Overconfidence; Amman Stock Exchange; Behavioral Finance; Experience; Financial Knowledge;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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