Boys will be boys: Gender, overconfidence, and common stock investment, Quarterly

Boys will be boys: Gender, overconfidence, and common stock investment, Quarterly (2001)

by Brad M. Barber , Terrance Odean

Venue:	Journal of Economics
Citations:	70 - 9 self

Datum	Value	Source
TITLE	Boys will be boys: Gender, overconfidence, and common stock investment, Quarterly	INFERENCE
AUTHOR NAME	Brad M. Barber	SVM HeaderParse 0.2
AUTHOR NAME	Terrance Odean	SVM HeaderParse 0.2
ABSTRACT	Theoretical models predict that overcon�dent investors trade excessively. We test this prediction by partitioning investors on gender. Psychological research demonstrates that, in areas such as �nance, men are more overcon�dent than women. Thus, theory predicts that men will trade more excessively than women. Using account data for over 35,000 households from a large discount brokerage, we analyze the common stock investments of men and women from February 1991 through January 1997. We document that men trade 45 percent more than women. Trading reduces men’s net returns by 2.65 percentage points a year as opposed to 1.72 percentage points for women. It’s not what a man don’t know that makes him a fool, but what he does know that ain’t so. Josh Billings, nineteenth century American humorist It is dif�cult to reconcile the volume of trading observed in equity markets with the trading needs of rational investors. Rational investors make periodic contributions and withdrawals	SVM HeaderParse 0.2
YEAR	2001	INFERENCE
VENUE	Journal of Economics	INFERENCE
VENUE TYPE	JOURNAL	INFERENCE
PAGES	261--292	INFERENCE
CITATIONS	56 found	ParsCit 1.0