Antecedents Analysis of Overconfidence among Domestic Individual Investors:Based on Personality Traits,Social Class and Cognitive Ability
On the basis of considering the high overconfidence of individual investors in China,this paper further analyzes the antecedents that influence the overconfidence of individual investors,this paper ex-plores the effects of personality traits,social class and cognitive ability on overconfidence of individual investors.The results show that the open personality has a significant positive effect on overconfidence,and the Open Value Dimension is the main reason.The higher the social class of the original family,the more likely the subjects are to be overconfident in investment.Cognitive ability has a significant negative effect on overconfidence.Subjects with high cognitive ability are less likely to be overconfident in investment.This law can help individual investors to have a deeper understanding of overconfidence behavior,and then help individual investors to make rational decisions,it will also help regulators bet-ter understand the underlying patterns of individual investors'irrational behaviour,leading to more ef-fective policies and healthier market development.
Big Five PersonalityFamily of Origin Social ClassOverconfidenceCognitive AbilityIn-dividual Investor
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