GUTMANN CENTER FOR PORTFOLIO MANAGEMENT
at the University of Vienna - http//:www.gutmann-center.at
invites to the following
PUBLIC LECTURE:
(Apologies for any cross-listings!):
Date: December 5th, 2005 - 4.00 p.m.
Location: Bank Gutmann AG, Schwarzenbergplatz 16, 1010 Wien
Speaker: Prof. Dr. Terrance ODEAN (
www.odean.org)
Haas School of Business at the University of California, Berkeley
Title: "INVESTOR BEHAVIOR AND MARKET EFFICIENCY"
Abstract:
Professor Terrance Odean will present his research on how psychological
biases and decision heuristics affect the trading of individual
investors and the impact of this trading on investor welfare and market
efficiency. Analyzing the trading records of hundreds of thousands of
individual and institutional investors, Professor Odean finds that
individual investors tend to trade too frequently, hold onto their
losing investments, and buy stocks that are in the news. Psychological
motivations for these behaviors are overconfidence, a desire to avoid
feeling regret, and the limits of human attention. Investors, especially
those who have experienced recent success, are likely to be
overconfident about their abilities. Overconfidence leads to excessive
trading and lower returns. The stocks that individual investors buy tend
to subsequently under-perform those they sell. Active investors tend to
under-perform buy-and-hold investors. Men, who tend to be more
overconfident than women, trade 45% more actively than women thereby
hurting their net returns. And investors who switch to online trading
tend to trade more actively, more speculatively, and less successfully
after going online. And investors tend to buy stocks that are in the
news, irrespective of whether the news is good or bad. These trading
behaviors lead to substantial reductions in portfolio returns for
individual investors. Furthermore, the trading of individual investors
forecasts future asset returns.
About Terrance Odean:
Terrance Odean (
www.odean.org) is Professor of Finance at the Haas
School of Business, University of California, Berkeley. He is director
of UC Berkeley’s Experimental Social Science Laboratory, associate
editor of The Review of Financial Studies, and a member of the Russell
Sage Behavioral Economics Roundtable.
Professor Odean is an internationally highly respected scholar in the
field of behavioral finance. His research focuses on the implications of
overconfidence on investment behavior. It has been cited in The Wall
Street Journal, The New York Times, The L.A. Times, The Washington Post,
The International Herald Tribune, Time, Newsweek, U.S. News and World
Report, Barron's, Forbes, Business Week, Smart Money, Bloomberg
Personal, Worth, Kipplinger's Personal Finance, and several other
publications.
Professor Odean earned a B.A. in Statistics at the University of
California, Berkeley in 1990 and a Ph.D. in Finance from the Haas School
of Business in 1997. He held a position at the Graduate School of
Management, University of California Davies and returned to the Haas
School in 2001.
Please REGISTER:
Mail: gutmann.bwl(a)univie.ac.at
Phone: +43-1-4277-38186 - Fax: +43-1-4277-38074
Contact and further information:
Gutmann Center for Portfolio Management
University of Vienna - Mag. Dorothea GRIMM
Bruenner Str. 72 - A-1210 Wien
phone: +43-1-4277-38186 - fax: +43-1-4277-38074
mail: gutmann.bwl(a)univie.ac.at - web:
www.gutmann-center.at