Abstract
Over the decades financial market researchers come up with
resounding evidence about the influence of investors’ behavior on
investment decision making. In pursuit to be counted as pure science,
economists and conventional finance researchers ignored possible
effect of behavioral aspects on investment decision making. They
assumed investors as rational and thus financial markets as perfect.
But this line of thinking was unable to explain the events unfolded in
financial markets over 1980s-2000s. During the period behavioral
economics and finance got importance and acceptance around the
world. The field of behavioral finance is fairly new in Pakistan
therefore this study aims at analyzing the possible predictors of
investor overconfidence. Using data from a sample of 229 investors,
strong support is found for the model. All of the findings either support
the findings of historical studies or in accordance with the basic
theories in the area of behavioral finance.
Faid Gul, Naveed Akhtar. (2016) Predictors of Investor Overconfidence in Karachi Stock Exchange , Journal of Managerial Sciences, Volume 10, Issue 2.
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