Since 2014
Effect of False Confidence on Asset Allocation Decisions of Households
International Journal of Finance & Banking Studies
View Archive Info| Field | Value | |
| Title |
Effect of False Confidence on Asset Allocation Decisions of Households
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| Creator |
Chatterjee, Swarn; University of Georgia
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| Subject |
Finance, Financial Planning, Behavioral Economics
Wealth Accumulation, Asset Allocation, Financial Decision Making |
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| Description |
This paper investigates whether false confidence, as characterized by a high level of personal mastery and a low level of intelligence (IQ), results in frequent investor trading and subsequent investor wealth erosion across time. Using the National Longitudinal Survey (NLSY79), change in wealth and asset allocation across time is modeled as a function of various behavioral, socio-economic and demographic variables drawn from prior literature. Findings of this research reveal that false confidence is indeed a predictor of trading activity in individual investment assets, and it also has a negative impact on individual wealth creation across time.
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| Publisher |
SSBFNET
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| Contributor |
—
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| Date |
2014-01-28
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/237
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| Source |
International Journal of Finance & Banking Studies (ISSN: 2147- 4486); Vol 3, No 1 (2014): January; 1-11
2147-4486 |
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| Language |
eng
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| Relation |
http://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/237/324
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