Abstract

http://ssrn.com/abstract=139415
 
 

References (62)



 
 

Citations (406)



 
 

Footnotes (38)



 


 



Boys will be Boys: Gender, Overconfidence, and Common Stock Investment


Brad M. Barber


University of California, Davis

Terrance Odean


University of California, Berkeley - Haas School of Business

November 1998


Abstract:     
Theoretical models of financial markets built on the assumption that some investors are overconfident yield one central prediction: overconfident investors will trade too much. We test this prediction by partitioning investors on the basis of a variable that provides a natural proxy for overconfidence--gender. Psychological research has established that men are more prone to overconfidence than women. Thus, models of investor overconfidence predict that men will trade more and perform worse than women. Using account data for over 35,000 households from a large discount brokerage firm, we analyze the common stock investments of men and women from February 1991 through January 1997. Consistent with the predictions of the overconfidence models, we document that men trade 45 percent more than women and earn annual risk-adjusted net returns that are 1.4 percent less than those earned by women. These differences are more pronounced between single men and single women; single men trade 67 percent more than single women and earn annual risk-adjusted net returns that are 2.3 percent less than those earned by single women.

Number of Pages in PDF File: 39

JEL Classification: G1

working papers series


Download This Paper

Date posted: November 12, 1998  

Suggested Citation

Barber, Brad M. and Odean, Terrance, Boys will be Boys: Gender, Overconfidence, and Common Stock Investment (November 1998). Available at SSRN: http://ssrn.com/abstract=139415 or http://dx.doi.org/10.2139/ssrn.139415

Contact Information

Brad M. Barber
University of California, Davis ( email )
Graduate School of Management
One Shields Avenue
Davis, CA 95616
United States
530-752-0512 (Phone)
530-752-2924 (Fax)
Terrance Odean (Contact Author)
University of California, Berkeley - Haas School of Business ( email )
545 Student Services Building
Berkeley, CA 94720
United States
510-642-6767 (Phone)
510-666-2561 (Fax)
HOME PAGE: http://www.haas.berkeley.edu/faculty/odean.html
Feedback to SSRN


Paper statistics
Abstract Views: 7,629
Downloads: 1,669
Download Rank: 4,777
References:  62
Citations:  406
Footnotes:  38

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.391 seconds