Inter Relationship Between High Returns, Over Confidence and Trading Volume

Examining the Influence of Overconfidence on Trading Volume and Excess in Stock Market

Authors

  • Vijay Agrawal Singhania University

Keywords:

high returns, overconfidence, trading volume, financial economists, stylized facts, securities markets, excess volume, high market returns, investors, transactions

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.

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Published

2012-01-01

How to Cite

[1]
“Inter Relationship Between High Returns, Over Confidence and Trading Volume: Examining the Influence of Overconfidence on Trading Volume and Excess in Stock Market”, JASRAE, vol. 3, no. 5, pp. 0–0, Jan. 2012, Accessed: Jun. 15, 2025. [Online]. Available: https://ignited.in/index.php/jasrae/article/view/4155

Issue

Vol. 3 No. 5 (2012): Journal of Advances and Scholarly Researches in Allied Education (JASRAE)

Section

Articles

How to Cite

[1]
“Inter Relationship Between High Returns, Over Confidence and Trading Volume: Examining the Influence of Overconfidence on Trading Volume and Excess in Stock Market”, JASRAE, vol. 3, no. 5, pp. 0–0, Jan. 2012, Accessed: Jun. 15, 2025. [Online]. Available: https://ignited.in/index.php/jasrae/article/view/4155