PL EN


2009 | 1(41) | 69-81
Article title

BEHAVIOUR AND PREFERENCES OF INDIVIDUAL INVESTORS ON THE STOCK MARKET (Zachowania i preferencje inwestorów indywidualnych na rynku akcji)

Authors
Selected contents from this journal
Title variants
Languages of publication
PL
Abstracts
EN
This article presents the results of researches concerning individual investors' performance, behaviour and preferences on the stock market. The results show that individual investors' net returns (i.e. after accounting for transaction costs) underperform relevant benchmarks. There is also a relationship: the higher investor's turnover ratio, the lower net return. These results are consistent with the behavioral finance models in which investors overestimate the value of information they possess. Their overconfidence leads to excessive trading which hurts their performance. Thus, the majority of individual investors could improve their performance if they limited the number of transactions. Individual investors hold underdiversified portfolios (compounded on average of 4 stocks). In contrast to institutional investors, they prefer small stocks and stocks which do not pay dividends.
Year
Issue
Pages
69-81
Physical description
Document type
ARTICLE
Contributors
  • Piotr Kowalczuk, Uniwersytet w Bialymstoku, Wydzial Ekonomii i Zarzadzania, ul. Warszawska 63, 15-062 Bialystok, Poland
References
Document Type
Publication order reference
Identifiers
CEJSH db identifier
09PLAAAA066220
YADDA identifier
bwmeta1.element.110f3241-b204-36f4-b229-d397edc7d9d6
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.