MARC Record from Library of Congress

LEADER: 02123cam a22003377a 4500
001 2005618398
003 DLC
005 20050711125328.0
007 cr |||||||||||
008 050711s2005 mau sb 000 0 eng
010 $a 2005618398
040 $aDLC$cDLC
050 00 $aHB1
100 1 $aGraham, John R.
245 10 $aInvestor competence, trading frequency, and home bias$h[electronic resource] /$cJohn R. Graham, Campbell R. Harvey, Hai Huang.
260 $aCambridge, MA :$bNational Bureau of Economic Research,$cc2005.
490 1 $aNBER working paper series ;$vworking paper 11426
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 7/11/2005.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"People are more willing to bet on their own judgments when they feel skillful or knowledgeable (Heath and Tversky (1991)). We investigate whether this "competence effect" influences trading frequency and home bias. We find that investors who feel competent trade more often and have a more internationally diversified portfolio. We also find that male investors, and investors with higher income or more education, are more likely to perceive themselves as competent investors than are female investors, and investors with lower income or less education. Our results are unlikely to be explained by other hypotheses, such as overconfidence or information advantage. Finally, we separately establish a link between optimism towards the home market and international portfolio diversification"--National Bureau of Economic Research web site.
650 0 $aInvestments$xPsychological aspects.
650 0 $aInvestments$xDecision making.
650 0 $aPortfolio management.
650 0 $aInternational finance.
700 1 $aHarvey, Campbell R.
710 2 $aNational Bureau of Economic Research.
830 0 $aWorking paper series (National Bureau of Economic Research : Online) ;$vworking paper no. 11426.
856 40 $uhttp://papers.nber.org/papers/w11426