Confidence, opinions of market efficiency, and investment behavior of finance professors
AbstractWe identify finance professors' opinions on the efficiency of the stock markets in the United States and assess whether their views on efficiency influence their investing behavior. Employing a survey distributed to over 4,000 professors, we obtain four main results. First, most professors believe the market is weak to semi-strong efficient. Second, twice as many professors passively invest than actively invest. Third, our respondents' perceptions regarding market efficiency are almost entirely unrelated to their trading behavior. Fourth, the investment objectives of professors are, instead, largely driven by the same behavioral factor as for amateur investors-one's confidence in his own abilities to beat the market, independent of his opinion of market efficiency.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Financial Markets.
Volume (Year): 13 (2010)
Issue (Month): 1 (February)
Contact details of provider:
Web page: http://www.elsevier.com/locate/finmar
Market efficiency Investor confidence Investment decisions Behavioral finance;
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- OpiniÃµes sobre eficiÃªncia de mercado e comportamento como investidor
by Roberto Ushisima in Empresas e Mercados on 2011-02-28 01:03:00
- Links (18-25/02)
by Roberto Ushisima in Empresas e Mercados on 2011-02-25 21:10:00
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