The COVID-19 Pandemic and Overconfidence Bias: The Case of Cyclical and Defensive Sectors

被引：11

作者：

Azam, Md Qamar ^{[1
]}

Hashmi, Nazia Iqbal ^{[2
]}

Hawaldar, Iqbal Thonse ^{[3
]}

Alam, Md Shabbir ^{[4
]}

Baig, Mirza Allim ^{[1
]}

机构：

[1] Jamia Millia Islamia, Fac Social Sci, Dept Econ, New Delhi 110025, India

[2] Prince Sultan Univ, Coll Business Adm, Dept Finance, Riyadh 66833, Saudi Arabia

[3] Kingdom Univ, Coll Business Adm, Dept Accounting & Finance, Riffa 40434, Bahrain

[4] Univ Bahrain, Coll Business Adm, Dept Econ & Finance, Sakhir 32038, Bahrain

来源：

RISKS | 2022年 / 10卷 / 03期

关键词：

COVID-19; overconfidence bias; sectors; VAR; STOCK-MARKET; TRADING VOLUME; IMPACT; PRICE; PERFORMANCE;

D O I：

10.3390/risks10030056

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This research paper analyses the impact of COVID-19 to investigate the overconfidence bias in 12 cyclical and defensive sectors in pre- and during COVID-19 periods using daily data from 1 January 2015 to 31 December 2020. The results of VAR show that in the pre COVID-19 phase overconfidence bias is more prevalent in all the cyclical sectors; in particular, MEDIA, METAL and REALTY have highly significant coefficients . In the defensive sectors, the VAR outcomes are not as strong as we expected, except for SERVICES. During the COVID-19 period, the investor shifted their focus to COVID-19-related opportunities, leading to a surge in the IT and PHARMA sectors. In both phases, METAL, MEDIA and REALTY exhibit overconfidence-driven stock trading behaviour. ENERGY is the only sector in both the phases that does not witness overconfidence bias.

引用

页数：15

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