JOURNAL OF ACCOUNTING AND FINANCE
Overconfidence and Trading Volume: The Case of the Tunisian Stock Market
Author(s): Faouzi Boujedra, Fatma Ismaliia
Citation: Faouzi Boujedra, Fatma Ismaliia, (2019) "Overconfidence and Trading Volume: The Case of the Tunisian Stock Market", Journal of Accounting and Finance, Vol. 19, ss. 2, pp. 11-16
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper aims to present an attempt to explain exchange incentives on the Tunis Stock Market from a
behavioural point of view. We think that the elucidation of these anomalies cannot be done without circumspect description of the psychological aspects of investors. The excessive confidence has been given the predominant explanation of these phenomena. Indeed, when investors store increments, they become more confident of the precision of their private information and their exchange activities become more aggressive on the subsequent periods. The objective of this work is to identify whether the trading volume observed on the Tunisian Stock Market from the excessive exchange of overconfident investors. Results obtained through a set of tests, over the period which extends from 04/01/1999 to 07/10/2016. Results reveal that the hypothesis of overconfidence is not check on the Tunisia Stock Market over the study period.