英文摘要 |
Investors are not entirely rational and therefore tend to have biased investment behavior of which the overconfidence is the most widely discussed one to date. And individual investors also tend to make wrong decisions due to their information set not as complete as institutional investors. As a result, firm performance and trading volume, which are easily available to individual investors, are the information commonly used in their investment decision. Therefore, this study select the data of Taiwan stock market from 2005 to 2016 as a sample to explore the impact of firm performance and margin transaction on overconfidence of individual investors. We find that (1) there does exist overconfidence in Taiwan stock market for individual investors; (2) worse performance of firms have more investors with significant overconfidence; (3) the higher the margin purchase ratio becomes, the higher the overconfidence is; (4) the effect of margin purchase on overconfidence is larger than the firm performance on overconfidence. |