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Information, overconfidence and trading: Do the sources of information matter?

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  • Abreu, Margarida
  • Mendes, Victor
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    Abstract

    We investigate how the strength of the positive association between frequency of trading and information acquisition is dependent on the sources of information used by investors and on investors’ overconfidence. We add to the existing literature by investigating if the positive relationship between investment in information and intensity of trading in financial assets is sensitive to the sources of information used by investors, and if this influence is different for overconfident and non-overconfident investors.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0167487012000505
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Psychology.

    Volume (Year): 33 (2012)
    Issue (Month): 4 ()
    Pages: 868-881

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    Handle: RePEc:eee:joepsy:v:33:y:2012:i:4:p:868-881

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    Web page: http://www.elsevier.com/locate/joep

    Related research

    Keywords: Information; Overconfidence; Investor behavior; Trading; Sources of information;

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    References

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    Cited by:
    1. Humphreys, Brad & Paul, Rodney & Weinbach, Andrew, 2010. "Consumption Benefits and Gambling: Evidence From the NCAA Basketball Betting Market," Working Papers 2010-7, University of Alberta, Department of Economics.

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