| Title | Just How Much Do Individual Investors Lose by Trading ? |
| Authors | Barber, Brad M. Lee, Yi-Tsung Liu, Yu-Jane Odean, Terrance |
| Affiliation | Univ Calif Berkeley, Haas Sch Business, Berkeley, CA 94720 USA. Univ Calif Berkeley, Grad Sch Management, Berkeley, CA 94720 USA. Natl Chengchi Univ, Taipei, Taiwan. Peking Univ, Guanghua Sch, Beijing, Peoples R China. |
| Keywords | MUTUAL FUND PERFORMANCE PROBABILITY JUDGMENT ACCURACY COMMON-STOCK INVESTMENT UNITED-STATES HEDGE FUNDS RETURNS PRICE TRADERS MARKET OVERCONFIDENCE |
| Issue Date | 2009 |
| Publisher | review of financial studies |
| Citation | REVIEW OF FINANCIAL STUDIES.2009,22,(2),609-632. |
| Abstract | Individual investor trading results in systematic and economically large losses. Using a complete trading history of all investors in Taiwan, we document that the aggregate portfolio of individuals suffers an annual performance penalty of 3.8 percentage points. Individual investor losses are equivalent to 2.2% of Taiwan's gross domestic product or 2.8% of the total personal income. Virtually all individual trading losses can be traced to their aggressive orders. In contrast, institutions enjoy an annual performance boost of 1.5 percentage points, and both the aggressive and passive trades of institutions are profitable. Foreign institutions garner nearly half of institutional profits. |
| URI | http://hdl.handle.net/20.500.11897/404625 |
| ISSN | 0893-9454 |
| DOI | 10.1093/rfs/hhn046 |
| Indexed | SSCI |
| Appears in Collections: | 光华管理学院 |
