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Individual Investor Behavior: Evidence from the Clients of a Small Credit Cooperative Bank

International Journal of Behavioural Accounting and Finance, Vol. 2, Nos. 3/4, pp. 191-207, 2011

17 Pages Posted: 9 Feb 2012  

Enrico Maria Cervellati

University of Bologna - Department of Management

Pino Fattori

affiliation not provided to SSRN

Pierpaolo Pattitoni

University of Bologna - Department of Management; University of Bologna - Rimini Center for Economic Analysis (RCEA)

Date Written: January 1, 2011

Abstract

Individual characteristics are important in explaining investor trading behavior. The clients of a small cooperative bank are analyzed over the three-year period 2005-2007 to measure the effect that age, gender, income, job position and status of online trader has on the number of stock trades completed. A Negative Binomial regression is used since our dependent variable, the number of trades, can only assume non-negative discrete values. This paper shows that the number of transactions increases if the client is: man vs. women; self-employed vs. employee, retiree or housewife; online vs. traditional trader; higher vs. low income. Our findings are not clear cut with respect to age. In conclusion, individual characteristics are important in explaining an individual’s trading behavior since they affect an investor’s attitude towards risk and overconfidence.

Keywords: Behavioral Finance, Overconfidence, Overtrading, Individual Investor Characteristics, Credit Cooperative Banks

JEL Classification: D03, C25, G11

Suggested Citation

Cervellati, Enrico Maria and Fattori, Pino and Pattitoni, Pierpaolo, Individual Investor Behavior: Evidence from the Clients of a Small Credit Cooperative Bank (January 1, 2011). International Journal of Behavioural Accounting and Finance, Vol. 2, Nos. 3/4, pp. 191-207, 2011. Available at SSRN: https://ssrn.com/abstract=2000957

Enrico Maria Cervellati

University of Bologna - Department of Management ( email )

Via Capo di Lucca, 34
Bologna, 40126
Italy
0039(0)512098103 (Phone)
0039(0)51246411 (Fax)

HOME PAGE: http://www.sa.unibo.it

Pino Fattori

affiliation not provided to SSRN ( email )

Pierpaolo Pattitoni (Contact Author)

University of Bologna - Department of Management ( email )

Via Capo di Lucca, 34
Bologna, 40126
Italy

University of Bologna - Rimini Center for Economic Analysis (RCEA) ( email )

Via Patara, 3
Rimini (RN), RN 47900
Italy

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