TY  - JOUR
TI  - Factors That Lead to Investor’s Overconfidence: Pakistan Stock Exchange Case
AB  - The argument of why some investors may theoretically outperform the market in efficient markets raises questions about market efficiency. Behavioral Finance is an emerging field in finance. According to the behavioral finance approach, the moods, behaviors, feelings and attitudes of the investors are very important. Followers of the inefficientmarket concept try to prove market inefficiency by conducting research on factors specific to market activities. In order to test this arguments, many studies are conducted to test market anomalies. The purpose of this research is to apply the study conducted in 2008, which investigates the relationship between investors' sense of happiness and excessive trust, in the Pakistani Equity Market.The purpose of the research is to review the results of study conducted in 2008 that claim to investigate the relationship of investors' happy sentiment and overconfidence effect. Cloud coverage, temperature and temperature change, former returns, and short term loan change rate are used as proxies for happy sentiment. Data from Pakistan Stock Exchange and Meteorological Department is collected to check the relation. Data from Pakistan Equity Market and Pakistan Meteorology Department between 2007-2016 were used in this study.The happy sentiment index is divided into two categories: "natural environment happiness" and "investment atmosphere happiness." The results suggest that short term loan rates, previous day turnover and previous day activities have significant low effect on investment overconfidence of investor so trading activities are affected. Natural environment factors have less impact while investment atmosphere happiness has moderately high effect on market activities of investors.
AU  - Ertuğrul, Murat
AU  - Qureshi, Fareeha Javed
DO  - 10.47644/TurkishStudies.42950
PY  - 2020
JO  - Turkish Studies - Economics, Finance, Politics 
VL  - 15
IS  - 3
SN  - 2667-5625
SP  - 1327
EP  - 1338
DB  - TRDizin
UR  - http://search/yayin/detay/418409
ER  -