The Impact of Information Overload on Investment Decisions under the Information Disclosure System of STAR Market

Abstract

Due to the rise of the STAR Market, the information disclosure system has become a crucial component of registration, while a growing information overload issue has also emerged. This paper uses an experimental economics approach to investigate how information overload will affect investors in the STAR Market. And besides, this paper introduces investor experience as a moderating variable to analyse whether investor experience has an impact on the mechanism of action between information overload and investor decision making. The results show that in a stock market formed by real data, as the rate of effective information disclosure decreases, investors' returns decline and investors tend to make more rational decisions, with investor experience having less impacts on the moderating effect between the two. In response to this conclusion, this essay provides investors and policymakers with some options for fostering the growth of the STAR Market.