Factors affecting Vietnamese investors' overconfidence
Abstract
This study focuses on the psychological aspect of the Vietnamese investors
and its effect on their investment decision. In particular, we study the
overconfidence phenomenon and its possible determinants through a survey
methodology. These determinants include age, experience, academic
qualifications, financial knowledge, opinions of financial advisors, past
performance of the stock and the amount of information disclosed to
investors. Our sample consists of 127 randomly selected investors. The
results show that Vietnamese investors are overconfident of their trading
skills and investment decisions. A stepwise analysis shows that experience is
the only factor that significantly increases overconfidence.