A STUDY OF THE INFLUENCE OF SOCIO-DEMOGRAPHIC CHARACTERISTICS AND OVERCONFIDENCE ON DECISIONS OF INVESTORS, ANALYSTS AND INVESTMENT PROFESSIONALS FROM THE BEHAVIORAL FINANCE POINT OF VIEW

  • Daiana Paula Pimenta Universidade Federal de Goiás (UFG)
  • Jaluza Maria Lima Silva Borsato Universidade Federal de Uberlândia (FAGEN/UFU)
  • Kárem Cristina de Sousa Ribeiro Universidade Federal de Uberlândia(FAGEN/UFU)
Keywords: Decision Making, Behavioral Finance, Overconfidence

Abstract

Behavioral Finance is a new field of study that counteracts the assumption of the rationality on the partof decision makers, which is adopted by modern finance. One of the aspects of studies in behavioral financeis to identify how emotions and cognitive failures may influence the decision making process ofindividuals. In  this context, this study aims to ascertain whether the decisions of investors, analysts andinvestment professionals are influenced by a bias of overconfidence and the socio-demographiccharacteristics of these individuals. As a methodology, it was decided to conduct a study with a descriptivequantitative and qualitative approach. Therefore a field survey was carried to out to collect data with anonline questionnaire. The method of sampling by judgment was applied, which is characterized by the nonprobabilistic collection of samples from individuals registered with the Association of Investment Analystsand Professionals of the Capital Market in Minas Gerais (APIMEC-MG), as well as individuals registeredwith TBC Investments. This group consisted of 810 individuals who provided 398 valid questionnaires. Datawas analyzed by using the estimation methods of Two-Stage Least Squares (2SLS) and Ordinary LeastSquares (OLS), with correction for finite population and the results were compared. They showed thatdi erences of opinion, style and perception of the reality, motivated by personal and investmentcharacteristics and the susceptibility to the bias of the overconfidence of the agents, exert a significantimpact on decision making.

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Author Biographies

Daiana Paula Pimenta, Universidade Federal de Goiás (UFG)

Professora da Universidade Federal de Goiás (UFG) – Goiânia-Goiás, BrasilDoutoranda em Administração na Universidade de Brasilia (UnB)

Especialista em Finanças e Controladoria pela Universidade Federal de Uberlândia

Mestre em Administração na linha de Gestão Financeira e Controladoria pela Faculdade de Administração e Negócios da Universidade Federal de Uberlândia (FAGEN-UFU)

Graduada em Administração com Habilitação em Finanças pela Faculdade Politécnica de Uberlândia

Jaluza Maria Lima Silva Borsato, Universidade Federal de Uberlândia (FAGEN/UFU)

Professora da Faculdade de Gestão e Negócios, da Universidade Federal de Uberlândia (FAGEN/UFU) – Uberlândia-MG, Brasil

Mestre em Administração na linha de Gestão Financeira e Controladoria pela FAGEN/UFU

Especialista em Gestão Empresarial pela Fundação Getúlio Vargas−RJ. Graduada em Administração pela Universidade Federal de Uberlândia

Kárem Cristina de Sousa Ribeiro, Universidade Federal de Uberlândia(FAGEN/UFU)

Professora da Faculdade de Gestão e Negócios, da Universidade Federal de Uberlândia(FAGEN/UFU) – Uberlândia-MG, Brasil

Mestre, Doutora e Pós-doutora em Administração, área de Finanças, pela Universidade de São Paulo/USP.

Graduada em Administração pela Universidade Federal de Uberlãndia (UFU)

How to Cite
Pimenta, D., Borsato, J., & Ribeiro, K. (1). A STUDY OF THE INFLUENCE OF SOCIO-DEMOGRAPHIC CHARACTERISTICS AND OVERCONFIDENCE ON DECISIONS OF INVESTORS, ANALYSTS AND INVESTMENT PROFESSIONALS FROM THE BEHAVIORAL FINANCE POINT OF VIEW. REGE Revista De Gestão, 19(2). https://doi.org/10.5700/issn.2177-8736.rege.2012.49881
Section
Finanças