Overconfidence and risk preference among professional and non-professional investors. A study of the phenomena with the trial to find the relationship between them.
DOI:
https://doi.org/10.14659/PJOEP.2013.04.02Keywords:
inwestor profesjonalny, doświadczenie, nadmierna pewność siebie, miskalibracja, stosunek do ryzykaAbstract
The aim of this experimental study was to determine the extent of experiencing excessive self-confidence and the attitude towards risk, based on the knowledge and experience of operating on the capital market, as well as the influence of selfconfidence on investors’ attitude towards risk. Attention was focused on one type of overconfidence – miscalibration. The results do not confirm that investors with more knowledge and experience in financial markets have a stronger tendency toward over-precision. However, these investors show a higher disposition towards risk. Another observation is that higher self-estimation of skills has a positive impact on the willingness to take risk. Nevertheless, there is no evidence of a clear positive correlation between the tendency to take risks and overconfidence.
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