This paper studies daily returns of Internet stocks before and after the Internet Crash of March 27, 2000. We find evidence of a bubble before the Crash. We argue that this bubble was propelled by overconfident investors suffering from biased self-attribution. Our analysis of subgroups of Internet firms finds the stocks that were perhaps the most salient in investors' minds drove the death spiral of Internet stocks and, although the evidence is at best marginal, the entire U.S. market.
|Journal||Journal of Behavioral Finance|
|Publication status||Published - 2004|