Impact of herding behavior and overconfidence bias on investors’ decision-making in Pakistan
Investors’ decision-making are influenced by certain biases as reported in literature. Fundamental analysis is based on the assumption that investors think rationally, but in practice, things may be different. This study captures the impact of herding behavior and overconfidence biases on the invest...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Growing Science
2019-04-01
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| Series: | Accounting |
| Subjects: | |
| Online Access: | http://www.growingscience.com/ac/Vol5/ac_2018_10.pdf |
| _version_ | 1818946917551308800 |
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| author | Muhammad Qasim Rana Yassir Hussain Intkhab Mehboob Muhammad Arshad |
| author_facet | Muhammad Qasim Rana Yassir Hussain Intkhab Mehboob Muhammad Arshad |
| author_sort | Muhammad Qasim |
| collection | DOAJ |
| description | Investors’ decision-making are influenced by certain biases as reported in literature. Fundamental analysis is based on the assumption that investors think rationally, but in practice, things may be different. This study captures the impact of herding behavior and overconfidence biases on the investors’ decision-making in Pakistan. The proposed study collects the necessary data through questionnaires distributed among 150 respondents who were active in stock market and manage to process 100 completed ones. The relationships between investors’ decision-making and herding behavior as well as overconfidence biases were empirically tested using Ordinary Least Square (OLS) method. The results show that Pakistani investors’ decisions were significantly influenced by both herding behavior and overconfidence biases. |
| first_indexed | 2024-12-20T08:22:38Z |
| format | Article |
| id | doaj.art-a2305c6166454015886c6d2eead08a93 |
| institution | Directory Open Access Journal |
| issn | 2369-7393 2369-7407 |
| language | English |
| last_indexed | 2024-12-20T08:22:38Z |
| publishDate | 2019-04-01 |
| publisher | Growing Science |
| record_format | Article |
| series | Accounting |
| spelling | doaj.art-a2305c6166454015886c6d2eead08a932022-12-21T19:46:56ZengGrowing ScienceAccounting2369-73932369-74072019-04-0152819010.5267/j.ac.2018.7.001Impact of herding behavior and overconfidence bias on investors’ decision-making in PakistanMuhammad QasimRana Yassir HussainIntkhab MehboobMuhammad ArshadInvestors’ decision-making are influenced by certain biases as reported in literature. Fundamental analysis is based on the assumption that investors think rationally, but in practice, things may be different. This study captures the impact of herding behavior and overconfidence biases on the investors’ decision-making in Pakistan. The proposed study collects the necessary data through questionnaires distributed among 150 respondents who were active in stock market and manage to process 100 completed ones. The relationships between investors’ decision-making and herding behavior as well as overconfidence biases were empirically tested using Ordinary Least Square (OLS) method. The results show that Pakistani investors’ decisions were significantly influenced by both herding behavior and overconfidence biases.http://www.growingscience.com/ac/Vol5/ac_2018_10.pdfHerding BehaviorOverconfidence BiasDecision makingOLS |
| spellingShingle | Muhammad Qasim Rana Yassir Hussain Intkhab Mehboob Muhammad Arshad Impact of herding behavior and overconfidence bias on investors’ decision-making in Pakistan Accounting Herding Behavior Overconfidence Bias Decision making OLS |
| title | Impact of herding behavior and overconfidence bias on investors’ decision-making in Pakistan |
| title_full | Impact of herding behavior and overconfidence bias on investors’ decision-making in Pakistan |
| title_fullStr | Impact of herding behavior and overconfidence bias on investors’ decision-making in Pakistan |
| title_full_unstemmed | Impact of herding behavior and overconfidence bias on investors’ decision-making in Pakistan |
| title_short | Impact of herding behavior and overconfidence bias on investors’ decision-making in Pakistan |
| title_sort | impact of herding behavior and overconfidence bias on investors decision making in pakistan |
| topic | Herding Behavior Overconfidence Bias Decision making OLS |
| url | http://www.growingscience.com/ac/Vol5/ac_2018_10.pdf |
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