EMPIRICAL STUDY ON OVERCONFIDENCE BIAS ON EQUITY INVESTMENT IN CHENNAI

Abstract

The study focuses on investigating the overconfidence bias among equity investors in Chennai. The chosen research approach is descriptive in nature, with a specific focus on investors. To effectively carry out this study, a structured questionnaire was deemed appropriate. The questionnaire used in this research was adapted from the work of Samina Gilli, et. al., (2018). A total of 324 respondents participated in the study, selected through convenience sampling. The collected data was then subjected to various statistical analyses, including calculating the mean and standard deviation, as well as determining correlations and conducting regression analysis. The research reveals that the inclination to outperform others in selecting stocks and a willingness to engage in higher-risk investments for greater potential gains positively shape investment decisions. On the other hand, possessing an extensive understanding of the stock market appears to exert a negative influence on investment choices.

Keywords: Overconfidence, investment decisions, equity investors, Tamil Nādu