Trading Behaviour of Finnish Households: Activity, Performance and Overconfidence

Tyynelä, Markku Tapani; Perttunen, Jukka

doi:10.2139/ssrn.302691

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Trading Behaviour of Finnish Households: Activity, Performance and Overconfidence

Working Paper Series

22 Pages Posted: 22 Mar 2002

See all articles by Markku Tapani Tyynelä

Jukka Perttunen

University of Oulu - Department of Accounting & Finance

Date Written: February 2002

Abstract

One of the questions in recent stock market research has been the analysis of trading activity, and its profitability effects. It is hypothesized that investors trade excessively in a sense that their strategies underperform the alternative "buy-and-hold" strategy. One of the reasons for worse performance of active traders is proposed to be overconfidence. We have analysed the trading activity and gross return portfolio performance of Finnish households from the end of June 1996 to the end of June 2000. Our data covers stock holdings and trades on a daily basis.

Keywords: trading activity, portfolio performance, overconfidence

JEL Classification: G14

Suggested Citation: Suggested Citation

Tyynelä, Markku Tapani and Perttunen, Jukka, Trading Behaviour of Finnish Households: Activity, Performance and Overconfidence (February 2002). Working Paper Series, Available at SSRN: https://ssrn.com/abstract=302691 or http://dx.doi.org/10.2139/ssrn.302691