The Impact of Overconfidence on Investors' Decisions

Boubaker Adel, Talbi Mariem

Abstract


The purpose of this paper is to study the impact of the bias of overconfidence on the decisions of investors, specifically to evaluate the relationship between the bias, trading volume and volatility. The empirical study on a sample of 27companies listed on the stock exchange in Tunis, observed over the period, which runs from 2002 until 2010.
The results we have achieved, through the application of tests and VAR modeling ARMA-EGARCH indicate the importance of confidence bias in the analysis of characteristics of the Tunisian financial market.


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DOI: http://dx.doi.org/10.5296/ber.v3i2.4200

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