Overconfidence, Representativeness and Hearding Bias among German Investors: how demographic and other Variables Influence Their Decision

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F23%3A97831" target="_blank" >RIV/60460709:41110/23:97831 - isvavai.cz</a>

Result on the web

<a href="https://www.magnanimitas.cz/" target="_blank" >https://www.magnanimitas.cz/</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.33543/j.1302.285294" target="_blank" >10.33543/j.1302.285294</a>

Result language

čeština

Original language name

Overconfidence, Representativeness and Hearding Bias among German Investors: how demographic and other Variables Influence Their Decision

Original language description

The study assesses based on the responses from the survey of 342 persons how behavioural biases affect German investors' investment decisions. Three behavioural biases were examined: overconfidence, representativeness, and herding behavior. It was determined that demographic factors affecting German investors, such as gender, age, experience, education, and frequency of investment, influence this choice. Male German investors are more susceptible to all three biases than females. Young investors (<35 years) are more at risk for the overconfidence bias and the representativeness bias, while older investors (>35 years) are more at risk for the herding bias. Investors with a lower experience (<5 years) on the stock market have a higher tendency for the three biases than German investors with a higher experience (> five years). Investors with a high (i.e. university) education are more susceptible to the three biases than those with a low education. Investors with a high investing frequency (> three months) scored higher for all three biases than investors with a low investing frequency (<3 months).

Czech name

Overconfidence, Representativeness and Hearding Bias among German Investors: how demographic and other Variables Influence Their Decision

Czech description

The study assesses based on the responses from the survey of 342 persons how behavioural biases affect German investors' investment decisions. Three behavioural biases were examined: overconfidence, representativeness, and herding behavior. It was determined that demographic factors affecting German investors, such as gender, age, experience, education, and frequency of investment, influence this choice. Male German investors are more susceptible to all three biases than females. Young investors (<35 years) are more at risk for the overconfidence bias and the representativeness bias, while older investors (>35 years) are more at risk for the herding bias. Investors with a lower experience (<5 years) on the stock market have a higher tendency for the three biases than German investors with a higher experience (> five years). Investors with a high (i.e. university) education are more susceptible to the three biases than those with a low education. Investors with a high investing frequency (> three months) scored higher for all three biases than investors with a low investing frequency (<3 months).

Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50201 - Economic Theory

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2023

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

AD ALTA-JOURNAL OF INTERDISCIPLINARY RESEARCH

ISSN

1804-7890

e-ISSN

1804-7890

Volume of the periodical

13

Issue of the periodical within the volume

2

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

9

Pages from-to

285-294

UT code for WoS article

001143971400056

EID of the result in the Scopus database

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