Keywords
Overconfidence Bias
Behavioural Finance
Investment Decisions
ANOVA
How to Cite
Abstract
This study analyses the impact of demographic profile on overconfidence bias of individual investment decision-making. Overconfidence is a behavioural trait biases where individuals overestimate their knowledge and forecasting the future, often leads to unexpectable financial outcomes. To examine this study, used primary data were collected through a well-structured questionnaire administered to a sample of 105 respondents in the Sivakasi region. The study utilized judgmental sampling techniques to ensure the inclusion of active investors capable of providing relevant insights into behavioural attention. Statistical analysis was performed using Analysis of Variance (ANOVA) and independent sample t-tests to evaluate the significance of demographic variables and test the formulated hypotheses. The empirical results reveal a statistically significant relationship between age and overconfidence bias, suggesting that an investor's stage of life or years of experience may notably impact their perceived competence and subsequent risk-taking behaviour. These findings contribute to the growing body of behavioural finance literature by highlighting how specific personal factors can deviate an investor from purely rational economic models.
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