Inter Relationship Between High Returns, Over Confidence and Trading Volume

Published in Journal

Journal of Advances and Scholarly Researches in Allied Education [JASRAE] (Vol:3/ Issue: 5) DOI: 10.29070/JASRAE
Authors: Vijay Agrawal,
Subjects: Multidisciplinary Academic Research

Year: Jan, 2012
Volume: 3 / Issue: 5
Pages: 0 - 0 (0)
Publisher: Ignited Minds Journals
Source:
E-ISSN: 2230-7540
DOI:
Published URL: http://ignited.in/a/973
Published On: Jan, 2012

Article Details

Inter Relationship Between High Returns, Over Confidence and Trading Volume |

Vijay Agrawal, in Journal of Advances and Scholarly Researches in Allied Education | Multidisciplinary Academic Research

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ABSTRACT:

It has been a challenge for financialeconomists to explain some stylized facts observed in securities markets, amongthem, high levels of trading volume. The most prominent explanation of excessvolume is overconfidence. High marketreturns make investors overconfident and as a consequence, these investors trade more subsequently and make some transactions more aggressively.The aim of our paper is to study the impact of the phenomenon of overconfidenceon the trading volume and its role in the formation of the excess volume on thestock market.