Investor Overconfidence, Turnover, Volatility and the Disposition Effect: A Study Based on Price Target Updates

摘要: This paper analyzes the interaction between investor overconfidence, share turnover, return volatility and disposition effect. I create a measure for overconfidence using posted price target updates retrieved from Yahoo!Finance online message boards. find that posters are slow to adjust targets changes in underlying stock prices. These updating patterns appear be suboptimal when contrasted with realized sell-side analyst benchmarks. further exhibited by is strongly associated volatility, magnitude of The results this add our understanding link behavioral biases stock-level anomalies financial markets.