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Overconfidence Among Professional Investors: Evidence from Mutual Fund Managers
16 references·16 citing·33 second hopsampled
Overconfidence Among Professional Investors: Evidence from Mutual Fund Managers (2011)Overconfidence Among Professional Investo…Who makes acquisitions? CEO overconfidence and the market's reaction☆ (2008)Who makes acquisitions? CEO o…Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches (2008)Estimating Standard Errors in…CEO Overconfidence and Corporate Investment (2005)CEO Overconfidence and Corpor…Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors (2000)Trading Is Hazardous to Your …Do Investors Trade Too Much? (1999)Do Investors Trade Too Much?Investor Psychology and Security Market Under‐ and Overreactions (1998)Investor Psychology and Secur…Costly Search and Mutual Fund Flows (1998)Costly Search and Mutual Fund…Risk Taking by Mutual Funds as a Response to Incentives (1997)Risk Taking by Mutual Funds a…On Persistence in Mutual Fund Performance (1997)On Persistence in Mutual Fund…The Limits of Arbitrage (1995)The Limits of ArbitrageCommon risk factors in the returns on stocks and bonds (1993)Common risk factors in the re…Self-serving biases in the attribution of causality: Fact or fiction? (1975)Self-serving biases in the at…Risk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…Victims of Groupthink (1972)Victims of GroupthinkTHE PERFORMANCE OF MUTUAL FUNDS IN THE PERIOD 1945–1964 (1968)THE PERFORMANCE OF MUTUAL FUN…A model of investor sentiment /A model of investor sentiment…Outcome bias in self-evaluations: Quasi-experimental field evidence from Swiss driving license exams (2022)Outcome bias in self-evaluati…The exclamation mark of Cain: Risk salience and mutual fund flows (2021)The exclamation mark of Cain:…Institutional investor sentiment and the mean-variance relationship: Global evidence (2021)Institutional investor sentim…Herd behaviour & investor sentiment: Evidence from UK mutual funds (2020)Herd behaviour & investor sen…What Drives Risk Perception? A Global Survey with Financial Professionals and Lay People (2019)What Drives Risk Perception? …Surveying Business Uncertainty (2019)Surveying Business UncertaintyInformation Characteristics and Errors in Expectations: Experimental Evidence (2017)Information Characteristics a…The benefits of option use by mutual funds (2016)The benefits of option use by…Speed of Information Diffusion within Fund Families (2016)Speed of Information Diffusio…Irrational Mutual Fund Managers: Explaining Differences in Their Behavior (2016)Irrational Mutual Fund Manage…A review of behavioural and management effects in mutual fund performance (2016)A review of behavioural and m…Is Ethical Money Sensitive to Past Returns? The Case of Portfolio Constraints and Persistence in Islamic Funds (2015)Is Ethical Money Sensitive to…Information Characteristics and Errors in Expectations: Experimental Evidence (2014)Information Characteristics a…The impact of investor sentiment on the German stock market (2012)The impact of investor sentim…Financial Professionals' Overconfidence: Is It Experience, Function, or Attitude? (2011)Financial Professionals' Over…Overconfidence and delegated portfolio management (2010)Overconfidence and delegated …CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Cross-Section of Expected Stock Returns (1992)Illiquidity and stock returns: cross-section and time-series effects (2002)A five-factor asset pricing model (2014)The Behavior of Stock-Market Prices (1965)Investor Sentiment and the Cross‐Section of Stock Returns (2006)Market Liquidity and Funding Liquidity (2008)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)Continuous Auctions and Insider Trading (1985)Does the Stock Market Overreact? (1985)Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency (1993)A Unified Theory of Underreaction, Momentum Trading, and Overreaction in Asset Markets (1999)Boys will be Boys: Gender, Overconfidence, and Common Stock Investment (2001)The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets (1965)EFFICIENT CAPITAL MARKETS: A REVIEW OF THEORY AND EMPIRICAL WORK* (1970)Noise Trader Risk in Financial Markets (1990)Efficient Capital Markets: II (1991)Judgment under Uncertainty: Heuristics and Biases (1975)In Search of Attention (2011)Integración de los mercados financieros Latinoamericanos por medio de MILA (2020)The Market for "Lemons": Quality Uncertainty and the Market Mechanism (1970)The Pricing of Options and Corporate Liabilities (1973)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)A review of tax research (2010)Depression Babies: Do Macroeconomic Experiences Affect Risk Taking?* (2011)Specification Tests in Econometrics (1978)Econometric Analysis of Cross Section and Panel Data (2001)Robust Standard Errors for Panel Regressions with Cross-Sectional Dependence (2007)Robust Inference With Multiway Clustering (2011)Policy Uncertainty and Corporate Investment (2015)Multifactor Explanations of Asset Pricing Anomalies (1996)Investor Psychology and Asset Pricing (2001)All That Glitters: The Effect of Attention and News on the Buying Behavior of Individual and Institutional Investors (2007)
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References

  • 1993Common risk factors in the returns on stocks and bonds26,615 cited
  • 1997On Persistence in Mutual Fund Performance17,267 cited
  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 2008Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches10,793 cited
  • 1998Investor Psychology and Security Market Under‐ and Overreactions5,711 cited
  • 1995The Limits of Arbitrage5,282 cited
  • 1968THE PERFORMANCE OF MUTUAL FUNDS IN THE PERIOD 1945–19644,330 cited
  • n.d.A model of investor sentiment /4,073 cited
  • 2000Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors3,953 cited
  • 2005CEO Overconfidence and Corporate Investment3,686 cited
  • 1998Costly Search and Mutual Fund Flows3,217 cited
  • 2008Who makes acquisitions? CEO overconfidence and the market's reaction☆2,763 cited
  • 1975Self-serving biases in the attribution of causality: Fact or fiction?2,563 cited
  • 1972Victims of Groupthink2,379 cited
  • 1997Risk Taking by Mutual Funds as a Response to Incentives2,295 cited
  • 1999

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Do Investors Trade Too Much?
2,245 cited

Cited by

  • 2012The impact of investor sentiment on the German stock market88 cited
  • 2020Herd behaviour & investor sentiment: Evidence from UK mutual funds71 cited
  • 2021The exclamation mark of Cain: Risk salience and mutual fund flows69 cited
  • 2016A review of behavioural and management effects in mutual fund performance64 cited
  • 2016The benefits of option use by mutual funds48 cited
  • 2010Overconfidence and delegated portfolio management36 cited
  • 2011Financial Professionals' Overconfidence: Is It Experience, Function, or Attitude?35 cited
  • 2015Is Ethical Money Sensitive to Past Returns? The Case of Portfolio Constraints and Persistence in Islamic Funds29 cited
  • 2016Speed of Information Diffusion within Fund Families28 cited
  • 2021Institutional investor sentiment and the mean-variance relationship: Global evidence27 cited
  • 2016Irrational Mutual Fund Managers: Explaining Differences in Their Behavior26 cited
  • 2019Surveying Business Uncertainty18 cited
  • 2022Outcome bias in self-evaluations: Quasi-experimental field evidence from Swiss driving license exams10 cited
  • 2017Information Characteristics and Errors in Expectations: Experimental Evidence10 cited
  • 2019What Drives Risk Perception? A Global Survey with Financial Professionals and Lay People7 cited
  • 2014Information Characteristics and Errors in Expectations: Experimental Evidence6 cited