TY  - JOUR
AU  - Grinblatt,Mark
AU  - Keloharju,Matti
TI  - Sensation Seeking, Overconfidence, and Trading Activity
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12223
PY  - 2006
Y2  - May 2006
UR  - http://www.nber.org/papers/w12223
L1  - http://www.nber.org/papers/w12223.pdf
N1  - Author contact info:
Mark Grinblatt
UCLA
Anderson Graduate School of Management
110 Westwood Plaza, Box 951481
Los Angeles, CA  90095-1481
Tel: 310/825-1098
Fax: 310/206-5455
E-Mail: mark.grinblatt@anderson.ucla.edu

Matti Keloharju
Helsinki School of Economics
P.O. Box 1210
00101 Helsinki
Finland 
E-Mail: matti.keloharju@hse.fi
M2  - featured in NBER digest on 2006-05-15
AB  - This study analyzes the role that two psychological attributes%u2014sensation seeking and overconfidence%u2014play in the tendency of investors to trade stocks. Equity trading data are combined with data from an investor%u2019s tax filings, driving record, and psychological profile. We use the data to construct measures of overconfidence and sensation seeking tendencies. Controlling for a host of variables, including wealth, income, age, number of stocks owned, marital status, and occupation, we find that overconfident investors and those investors most prone to sensation seeking trade more frequently.
ER  -