Kufepaksi, Mahatma (2010) The Effect of the Quality of Information on Overconfident Decision: The Evidence of Self Deception in Indonesian Capital Market, a Case Study in an Experimental Setting. International Journal of Management and Innovation, 2 (1). pp. 51-65. ISSN 2070-8521

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Abstract

Psychological research demonstrates that overconfident behavior is inclined to emerge when people encounter uncertain situations. It is presumed that some investors practice overconfident behavior in the capital market. The purpose of this study is to investigate the role of the overconfident investors in predicting the value of the securities when they receive no market information, good news, and bad news. In this quasi experimental research, the participants were grouped into two categories based on the level of their overconfidence, namely the less and the more informed investors. The result shows that the less informed investors tend to overestimate the values of the securities that produce higher prediction errors than do those more informed investors in all experimental markets except that in the presence of good news. The phenomena reflect that the less informed investors practice self deceptive behavior.

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Fakultas Ekonomi dan Bisnis (FEB) > Prodi Manajemen
Depositing User:	MAHATMA KU
Date Deposited:	02 Jun 2017 04:02
Last Modified:	02 Jun 2017 04:02
URI:	http://repository.lppm.unila.ac.id/id/eprint/2958

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