Investor Behavior Research Papers - Academia.edu (original) (raw)

2025, Scientific Research Journal of Investment Knowledge

This study investigates the effect of forward-looking information disclosure on stock price reactions in the context of external environmental uncertainty. Data were collected from 104 companies listed on the Tehran Stock Exchange and Iran Fara Bourse over the years 2012 to 2015. Using the Ohlson model and Wong test, results show that forward-looking disclosures do not significantly impact stock price reactions in general. However, under conditions of environmental uncertainty, these disclosures can have a positive and significant effect. The SWARA method was used to identify and weigh key forward-looking terms disclosed in narrative financial reports.

2025, Social Science Research Network

This paper contributes to the existing literature on media content and asset prices by analyzing the relationship between the adoption of media guidance and a person's propensity to buy stocks. We provide empirical evidence on this relationship while controlling for a broad range of individual characteristics and preferences. The approach is based on a recent study that suggests that investors are characterized by limited attention and use media as a heuristic when deciding which assets to buy. In line with this view, it turns out that the link between media guidance and the propensity of individuals to buy stocks is extremely robust. However, our results contradict previous findings insofar as this relationship is not moderated by a person's degree of attention allocation to investment aspects. As the literature shows stocks with media coverage to underperform those without coverage, we conclude that the adoption of this heuristic can be very costly to investors.

2025, Global Empirical Marketing Studies

Citing This Article APA Style: Pornpitakpan, C., & Wang, X. (2025). A study of the relationships between social media discussions and company stock prices via web mining. Global Empirical Marketing Studies, 1(1), Article e2025.02.25.... more

2025, Investment Management and Financial Innovations

Social media significantly influences investor behavior, particularly in emerging markets like the Egyptian stock market. This study examines its impact on trading frequency, herding behavior, and overconfidence among Egyptian investors. Data were collected through a structured survey of 300 active investors, distributed via two prominent Facebook pages: "The Popular Union of Investors in the Egyptian Stock Market" and "Investment in the Egyptian Stock Market. " The sample was determined using Cochran's formula for large, undefined populations, achieving a 78% response rate from the 385 recommended respondents. A descriptive quantitative approach was employed, utilizing correlation tests and regression analysis to assess relationships between social media engagement and investor behavior. Findings indicate that social media usage significantly increases trading frequency, as investors make more reactive decisions based on rapidly available information. Herding behavior is also positively associated with social media engagement, demonstrating that investors tend to follow market trends and decisions discussed in online communities. Additionally, social media exposure fosters overconfidence, leading to increased risk-taking behavior. These insights highlight the critical role of social media in shaping investor behavior, with practical implications for regulators, financial advisors, and individual investors. Regulators should promote investor education on the cognitive biases linked to social media engagement, while financial advisors must address its influence on client decision-making. Future research should explore platformspecific features, such as visual content and influencer-driven financial advice, to better understand their effects on investment strategies.

2025, International Journal for Novel Research in Economics

Abstract – This study investigates the dynamics of mutual fund performance in India, focusing on factors such as investor behavior, regulatory influences, technological advancements, and the growing popularity of Environmental, Social, and Governance (ESG) funds. It provides an in-depth analysis of the evolution of mutual funds, both globally and in the Indian context, examining key performance evaluation metrics, investor preferences, and the role of financial technology in enhancing mutual fund accessibility. Drawing from a wide range of domestic and international literature, this research aims to fill existing gaps in mutual fund performance studies, offering insights into the impact of recent regulatory changes, the growing influence of digital platforms, and the shift toward sustainable investing. The findings underscore the significance of investor education, cost efficiency, and the resilience of ESG funds during market downturns. This research also identifies areas for future exploration, such as the long-term effects of emerging technologies on mutual fund transparency and performance. Keywords – Mutual Funds, Performance Evaluation, Investor Behavior, Sharpe Ratio, Treynor Ratio, Jensen's Alpha

2024, Journal of Economic Psychology

We investigate how the strength of the positive association between frequency of trading and information acquisition is dependent on investors' self-confidence and on the sources of information used by investors. Our results confirm that the more frequently individual investors invest in information, the more they trade in financial products. Our results also confirm previous findings that overconfident investors, who show a better than average bias, trade more frequently. In this paper, we add to this literature by investigating if the strong and positive relationship between investment in information and intensity of trading in financial assets is sensitive to the sources of information used by investors, and if this influence is different for overconfident and non-overconfident investors. We conclude that overconfident investors trade more frequently when they collect information directly using specialized sources and that nonoverconfident investors trade less frequently when they use professional advice from the bank/account manager.

2024, TIJER - INTERNATIONAL RESEARCH JOURNALS

This study examines the behavior of the Indian stock market during financial crises and analyzes how such economic
downturns impact market performance and investor responses. Financial crises often trigger significant market volatility and
uncertainty, posing challenges for investors and financial institutions. By investigating stock price movements, trading volumes, and
the reactions of various investor groups—such as retail, institutional, and foreign investors—this research aims to provide a
comprehensive understanding of market dynamics during crises. The study also explores the role of investor risk profiles in shaping
their investment decisions in times of financial stress. Insights from this research can help policymakers, investors, and financial advisors
develop effective strategies to manage risks and make informed investment choices during periods of economic instability. The findings
contribute to a better understanding of how financial crises influence the Indian stock market, offering valuable guidance for navigating
future financial downturns.

2024

The study of investors' behavior towards derivative instruments has gained substantial attention in financial research due to the complexities and potential benefits associated with these financial tools. Derivatives, such as options, futures, swaps, and forwards, are financial instruments whose value is derived from underlying assets like stocks, bonds, commodities, or market indices. They are widely used for hedging risk, speculation, and arbitrage, making them integral to modern financial markets. The present study aim is to measure the investors awareness towards various derivatives instruments and their investment intention. For this purpose, the study adopted nonprobability sampling method and convenient sampling technique. The researcher administered a structured questionnaire (Google forms) to sample respondents through online mode (e-mail, WhatsApp) to 200 sample investors in Hyderabad city. Out of 200 sample questionnaires, 38 are excluded due to non-response and invalid (halffilled) responses. The final sample consists of 172 and analyzed by using frequency method, descriptive statistics, correlation, Anovaone way test. The Anovaone way test results indicates that demographic factors such as occupation, educational qualification, marital status, and annual income generally have significant effects on investment intentions and behaviors. Age, however, appears to have a limited impact, except on factors influencing investment decisions. The χ2 results shows that educational qualification and marital status are consistently significant factors affecting various aspects of investors' behavior, including awareness, confidence, and risk tolerance. Age shows a significant impact only on awareness of derivatives.

2024, Advances in Finance and Investment

Purpose: The general goal of this research is to provide a model to explain the behavior of real investors in the Iranian capital market with an emphasis on local indicators.Methodology: The research is done using applied and qualitative method based on grounded data theory technique. Data were collected through semi-structured interviews and theoretical sampling continued until the categories were saturated. Then, based on the theoretical systematic approach of Strauss and Corbin in the three main steps of open, central and selective coding, the paradigm model of investors' behavior was presented with emphasis on local indicators.Findings: The findings showed that the central category of the paradigm model and the causal conditions affecting the behavior of investors, in terms of background and involved factors, are placed in two main groups: behavioral-psychological and demographic factors, which are 19 categories of behavioral and psychological factors and demographic factors. 5 categories have the most importance on the behavior of investors.Originality / Value: In many studies, only the semi-conscious aspect of the mind and with medical equipment has been addressed. While in this study, the conscious and alert aspects of investors' minds have been analyzed.

2024, International Journal of Multidisciplinary Research and Development

Extreme unpredicted momentum in global indices and security prices associated with uncertainty and unexplained stock price movements have made life difficult for a rational investor who relies on market fundamentals to make investment decisions. This study attempted to determine the contribution of investor behavior in influencing investor portfolio performance at the Nairobi Securities Exchange using a sample of 385 individual stock investors. The relationship between investor behavior and portfolio performance was tested using multiple regression. The overall model was statistically significant indicating that investor behavior influences portfolio performance with herding and disposition effect having a positive effect on portfolio performance while overconfidence has a negative effect on performance. The findings provide an eye-opener and basis of appreciation of the effect of behavioral biases on the results of trading activities. Stock market players can use these findings to ...

2024, Corporate Social Responsibility and Environmental Management

This study analyzes the demand for conventional and socially responsible (SR) mutual funds using cash flow data from a large sample of U.S. equity funds. For both types of funds, previous results have a positive impact on inflows. However, redemptions' behavior differs. Outflows correlate negatively with past results in conventional portfolios, whereas this relationship is positive for SR funds: investors are more likely to redeem shares in the best‐performing funds while holding funds that performed poorly. This behavior is compatible with a disposition effect in SR funds. These results hold even after controlling for other variables driving mutual fund demand. Hence, inflows and outflows of conventional funds were found to be positively related to past idiosyncratic risk, expenses and turnover, but negatively related to size and age. For SR funds, these relationships are stronger for size and idiosyncratic risk, and take the opposite sign for age, expenses and turnover.

2024, John Wiley & Sons, Inc. eBooks

Stock market psychology Historical financial crises Note: This exhibit provides a chronological timeline of a sample of relevant books in financial history and investment theory from 1841 to 1978. These books cover a wide range of subject matter including: crowd psychology, group behavior, individual behavior panics, bubbles, crashes, speculative behavior, investor psychology, trader psychology, investment strategies and theories, financial mistrust, and investor personality.

2024, International Journal of Organizational Analysis

Purpose Although overall well-being is a well-studied phenomenon, financial well-being only recently has attracted scholars’ attention. Accordingly, this study aimed to understand the relationship between financial well-being, its predictors (financial status, financial behaviour, financial knowledge and financial attitudes) and overall well-being. Design/methodology/approach The authors collected data from 262 working adults. Findings The results showed that only financial status was positively related to financial well-being and the latter was positively related to overall well-being. It was also found that financial well-being mediated the relationship between financial status and overall well-being. In sum, these results showed a multidisciplinary concept of overall well-being and that individuals tend to prioritize financial security over the other components. Research limitations/implications The cross-sectional nature of the data is a limitation. Practical implications Practi...

2024, Jurnal Aplikasi Bisnis dan Manajemen

Decision making in the capital market is not always rational. It is due to the emotional involvement of investors, which is described through financial behavior. Investor decision making based on financial behavior is considered as a loss aversion contained in prospect theory. In this theory, the prospect of risk aversion behavior when the market is profitable, but this behavior becomes an obstacle for investors to get higher returns. This study aimed to analyze the risk avoidance behavior that limits investment decision making in Indonesian stock investors. Primary data were obtained from individual investor transactions on the IDX, and secondary data were in the form of daily stock data. Identification of risk aversion was carried out using a non-linear regression method. The measurement of psychological resistance was carried out through an independent sample t-test by measuring the difference between actual and expected returns. The results showed that Indonesia's capital market investors have a riskaverse behavior in the gain domain and risk-seeking in the loss domain. Risk-averse behavior could reduce investment productivity.

2024, Jurnal Informatika Ekonomi Bisnis

The role of Herding Behavior (HD) is very much needed in moderation to support Investment Decisions (IC) for novice investors. This study aims to measure the size of Financial Literacy (FL) in making the right decisions. The data processed in this study are 158 novice investor respondents who invest in stock-type securities in Indonesia. The sampling method was carried out randomly (probability sampling) which was collected through the Google form. The data analysis method used is to answer the truth of the hypothesis using the help of the Structural Equation Model (SEM). The results of hypothesis testing found that FL had a positive and significant effect on KI and HD. The magnitude of the influence value is less than 0.05. The same test model for HD also has a positive effect on KI with a value smaller than 0.05. The test value of this effect on HD is not a direct effect, with a coefficient value of-0.039 which is smaller than 0.05. The conclusion of this study is that HD does not moderate the relationship between FL and KI for novice investors who invest in stock-type securities in Indonesia. So that this research can be used as a reference in making decisions for novice investors.

2024, Jurnal Informatika Ekonomi Bisnis

The role of herding behavior (HD) is very much needed in moderation to support Investment Decisions (IC) for novice investors. This study aims to measure the size of Financial Literacy (FL) in making the right decisions. The data processed in this study are 158 novice investor respondents who invest in stock-type securities in Indonesia. The sampling method was carried out randomly (probability sampling) which was collected through the Google form. The data analysis method used is to answer the truth of the hypothesis using the help of the Structural Equation Model (SEM). The results of hypothesis testing found that FL had a positive and significant effect on KI and HD. The magnitude of the influence value is less than 0.05. The same test model for HD also has a positive effect on KI with a value smaller than 0.05. The test value of this effect on HD is not a direct effect, with a coefficient value of -0.039 which is smaller than 0.05. The conclusion of this study is that HD does no...

2024, IAEME PUBLICATION

Understanding market sentiment is crucial for making informed investment decisions and predicting market trends. Traditional sentiment analysis methods often struggle to capture the complexities of financial text data. This paper highlights the significance of market sentiment in investment decisions and introduces FinBERT, a domain-specific adaptation of the BERT model, as a solution to these challenges. It provides an overview of the methodology tailored for financial sentiment analysis, incorporating visualization techniques such as word clouds and entity analysis to enhance interpretability. Through empirical findings we showcase the effectiveness of FinBERT in extracting sentiment from financial news headlines and predicting market trends. Additionally, we discuss the broader implications of methodological insights derived from FinBERT sentiment analysis, including applications in algorithmic trading and risk management

2024

The multiattribute model of consumer decision making and prospect theory have been used in studies of consumer behavior to explain buyer behavior, using reference prices. Extending some of these concepts to decisions in the stock market is possible. This is complicated however, since, stock buyers are investors not 'users', and buyers are also sellers in the stock market. This paper extends some of the concepts and ideas, from the area of pricing in consumer behavior to the field of behavioral finance. Variables that the article focuses on are stock price uncertainty, differences in investor behavior dependent on differing price review practices, and differences in investor behavior depending on the importance that investors place on recent price changes.

2024

The multiattribute model of consumer decision making and prospect theory have been used in studies of consumer behavior to explain buyer behavior, using reference prices. Extending some of these concepts to decisions in the stock market is possible. This is complicated however, since, stock buyers are investors not ‘users’, and buyers are also sellers in the stock market. This paper extends some of the concepts and ideas, from the area of pricing in consumer behavior to the field of behavioral finance. Variables that the article focuses on are stock price uncertainty, differences in investor behavior dependent on differing price review practices, and differences in investor behavior depending on the importance that investors place on recent price changes.

2024, Social Science Research Network

Using market-wide data from the Brazilian stock lending market at the deal level, we find strong evidence of short-selling skill for institutions and individuals. Skilled short-sellers present out-of-sample performance persistence. Exploring the granularity of our dataset, we find that skilled short-sellers do not display the disposition effect, are more likely to pick value, liquid, high-volatility, and losing stocks, and to initiate a short position before earnings announcements and around sell recommendations.

2024, SSRN Electronic Journal

We provide a theoretical and empirical analysis of the link between advertising expenditures, brand capital, and asset returns in the cross-section of U.S. publicly traded firms. Interpreting advertising expenditures as firms' investment in brand capital, we document that: (i) firms with high brand capital investment rates underperform firms with low brand capital investment rates by 7% per annum; and (ii) brand capital intensive firms outperform low brand capital intensive firms by 4.1% per annum. Based on standard Q-theory of investment, we develop a structural dynamic investment-based model in which advertising expenditures and firm's risk are both jointly and endogenously determined. The model replicates the empirical asset pricing facts reasonably well. In addition, the model is consistent with the timeseries properties of brand capital and physical capital investment rates, as well as with the unusually high advertising expenditures during seasoned equity offerings. Taken together, our results suggest that standard Q-theory of investment provides a useful framework for understanding the dynamics of advertising expenditures by corporations.

2023, Journal of Behavioral Finance

2023, Ledizioni eBooks

Seven ways to knit your portfolio: Is the language of investor communication gender neutral?

2023, Social Science Research Network

" "I In nd di iv vi id du ua al l I In nv ve es st to or rs s R Re ep pu ur rc ch ha as si in ng g B Be eh ha av vi io or r: : P Pr re ef fe er re en nc ce e f fo or r S St to oc ck ks s P Pr re ev vi io ou us sl ly y O Ow wn ne ed d" " C Cr ri is st ti ia an na a C Ce er rq qu ue ei ir ra a L Le ea al l M Ma an nu ue el l J J.. R Ro oc ch ha a A Ar rm ma ad da a G Gi il lb be er rt to o L Lo ou ur re ei ir ro o

2023, International Journal of Ethno-Sciences and Education Research

Behavioral finance has an important role in finance, namely understanding human behavior, including investor behavior. The type of data used is secondary data, namely data that is not directly given to data collectors, this data is obtained from books, scientific articles and internet sites, materials related to behavioral finance. The data collection technique in this study is a literature study that is directly related to behavioral finance. The method used in this research is the Systematic Literature Review (SLR), where the results of this study try to map the trends that occur regarding behavioral finance, also try to predict where this research will go, so that later it is expected to provide new input and views for the world of behavioral finance, what what needs to be explored at this time, what contributions are needed at this time, and can be an attraction for other researchers to study behavioral finance.

2023, Zenodo (CERN European Organization for Nuclear Research)

After COVID-19there have been many changes in the society. It affects all the communities in the society. Now a days Investing has become more complicated. As savings and investment companies proliferate and offer multiple offerings, investment rules and regulations become more stringent. The motive of every investor is to earn income on their investment. There are many factors that influence the people behaviour on savings and investment. While doing investment the investor should think about safety, security and optimum return on investment. The foremost objective of the study is to analyze the people behaviour on savings and investments after pandemic situation. For this study we collected data thorough structured questionnaire from 120 respondents in Anantapur region. The conclusions were drawn by applying various statistical tools.

2023, Economic Growth eJournal

Structured investment funds showed an important growth in the mutual fund industry. We analyze this type of fund’s demand using the experimental methodology which gives us perfect control over the characteristics of the funds and the information provided to the investor. Different types of structured guaranteed funds, with fixed combinations of secured and additional benefits, are sequentially offered to university students who act as investors. Subjects also have the alternative possibility to buy bonds. Our results show that information available to investors, and particularly the order in which this information is presented, generates significant biases in their decision making which can have both positive and negative consequences on their financial behavior. In fact, when the investment alternatives are made easier to compare, too good to be true investment offers get more easily spotted, whereas funds whose performance shows an apparently positive trend result overvalued in co...

2023, Corporate Social Responsibility and Environmental Management

This study analyzes the demand for conventional and socially responsible (SR) mutual funds using cash flow data from a large sample of U.S. equity funds. For both types of funds, previous results have a positive impact on inflows. However, redemptions' behavior differs. Outflows correlate negatively with past results in conventional portfolios, whereas this relationship is positive for SR funds: investors are more likely to redeem shares in the best-performing funds while holding funds that performed poorly. This behavior is compatible with a disposition effect in SR funds. These results hold even after controlling for other variables driving mutual fund demand. Hence, inflows and outflows of conventional funds were found to be positively related to past idiosyncratic risk, expenses and turnover, but negatively related to size and age. For SR funds, these relationships are stronger for size and idiosyncratic risk, and take the opposite sign for age, expenses and turnover.

2023, … State University Working …

We study brokerage account data from China to study investing behavior and trading performance in an emerging market. We find that Chinese investors exhibit behavioral biases (i.e., they seem overconfident, inclined toward a disposition effect, and exhibit a representativeness bias) and make poor ex post trading decisions. We also consider potential cross-sectional determinants of investing behavior. Specifically, we identify (1) investors who have accumulated relatively more years of investing experience, (2) middle-aged investors, (3) active investors, (4) investors with relatively more wealth, and (5) investors from the more cosmopolitan Chinese cities, to see if these investors are less prone to exhibiting behavioral biases. Oftentimes, the answer seems to be 'no.'

2023, International Journal of Economics, Business and Accounting Research (IJEBAR)

The problem of fraud in financial statements is a global problem that has crossed borders of time and country. This research was created to prevent fraud by detecting financial statements listed on the Indonesia Stock Exchange (IDX). The fraud detection tools used in this research are F-S.C.O.R.E and Financial Distress. S.C.O.R.E stands for Stimulus, Capability, Opportunity, Rationalization, and Ego, which are supporting variables in detecting fraud. The research results show that Stimulus, Capability, and Financial Distress effectively detect fraud. Fraud detection in the research concluded that companies that have strong indications of committing fraud are companies categorized in industrials in the IDX Industrial Classification.

2023, Nigerian Chapter of Arabian Journal of Business and Management Review

Although finance has been studied for several decades, behavioral finance which considers the human behaviors in finance is a quite new area. Behavioral finance theories, which are based on the psychology, attempt to understand how emotions and cognitive errors influence individual investors' behavior. The individual investor plays a vital role in the stock market because of their good savings. The regulators of the stock market cannot ignore the behavior of individual investors. Many individuals find investments to be fascinating because they can participate in the decision making process and see the results of their choice. Not all investments will be profitable, as investors' whims not always result in fruitful returns. Recent studies on the behavior of individual investors' have shown that investors do not act in a rational manner. Several behavioral factors influence their investment decisions in stock markets. The present study aims to review the research studies and literature to gain knowledge about key factors that influence investment behavior in different countries and the ways these factors impact investment risk tolerance and decision making process among men and women and among different age groups.

2023, Alzahra University

In financial-behavioral theory, analyzing the impact of investor attitude and behavior on investment decisions can lead to a fair distribution of service to capital market actors. Establishing such equity requires identifying and prioritizing the important factors that influence investor decision-making behaviors. Therefore, the present study has attempted to identify the factors influencing investor attitude and behavior in investment decision making, and by their conceptual and operational definition, and the formulation of their relationship, develop a comprehensive decision making model based on investor behavior and attitude in Tehran Stock Exchange. In order to formulate the research model and fit it, 350 questionnaires were distributed by non-random sampling method and 225 questionnaires were completed and collected. Factor analysis was used to test the data obtained from the questionnaire. The main components of the research include understanding of their performance, financial ability, cognitive bias, behavioral attitude and investor optimal decision making. Findings of the study indicate that understanding of their performance is negatively and significantly correlated with behavioral attitude and positively and significantly correlated with financial ability. Also, other research results show that behavioral attitude has a negative and significant relationship with investor optimal decision, but financial ability has a positive and significant relationship with investor optimal decision.

2023, Brazilian Review of Finance

This study complements the existing literature on investor attention with three empirical findings. First, we show that low-activity individual investors are net buyers of stocks appearing on the headlines of news stories that convey no meaningful information about future returns. Second, we document that this buying pressure of some individuals following purely attention-grabbing articles leads to higher short-term returns. Finally, we provide evidence that investors who are more prone to purchase stocks after irrelevant news have poorer stock-picking performance. We hypothesize that individuals tend to narrow their choice set to alternatives that attract attention. Taken together, our findings suggest that the media, just by making some firms more salient, plays an important role in the allocation of individual investors' attention in investment activities.

2023

Using transaction-level data from two German banks, we study the effects of smartphones on investor behavior. Comparing trades by the same investor in the same month across different platforms, we find that smartphones increase purchasing of riskier and lottery-type assets and chasing past returns. After the adoption of smartphones, investors do not substitute trades across platforms and buy also riskier, lottery-type, and hot investments on other platforms. Using smartphones to trade specific assets or during specific hours contributes to explain our results. Digital nudges and the device screen size do not mechanically drive our results. Smartphone effects are not transitory.

2023, ZENITH International Journal of Business Economics & Management Research

The purpose of the study to understand the performance of active portfolio management in emerging market and to explores the role of emerging market in investment portfolio. It was found that emerging markets, thought that their stand alone risk is very high compared to developed markets provide diversification benefit due to low correlation of their returns with developed markets. Thus, it becomes imperative that the concept is studied specifically in the context of the emerging economies of the world. The current study will also focus on comparing the performances of both the management strategies (Active and Passive strategy) in the specific context of the emerging markets and determine which of the two is most suitable for an investor to be able to outperform the market as well as generate maximum net result. This paper also examine whether Indian fund manger follow an active portfolio strategy or passive portfolio strategy. The study focuses on performance evaluation of selecte...

2023, International Journal of Multidisciplinary Research and Development

2022, SSRN Electronic Journal

The concept of familiarity has been used in finance theory to explain apparent paradoxes in people's behavior, such as the home bias in portfolio choices. This study investigates whether (lack of) familiarity with the language of financial consumers may contribute to an explanation of the well-documented gender gap in financial decision-making. Using an interdisciplinary framework that combines insights from Behavioral Economics, Finance, Social Psychology and Applied Linguistics, we analyze the metaphors used in websites that target beginning retail investors in three different languages; Dutch, Italian and English. We find that in all three languages the metaphors used come from the same conceptual domains; namely, war, health, physical activity, game, farming and the five senses. As these domains refer to worlds that are predominantly masculine, we conclude that the language used to address financial consumers may give rise to feelings of familiarity and belonging among men, while creating feelings of distance and nonbelonging among women.

2022

Purpose- This study was intent on establishing the effect of behavioral factors on investment decisions in the real estate sector in Nairobi County. The behavioral factors explored for this study were herd behavior, representativeness, anchoring and overconfidence. Methodology- The study exploited descriptive research design to explicate how investors in real estate sector in Nairobi County make investment decisions from a behavioral finance point of view. Descriptive statistics and inferential statistics were used to scrutinize the data. Descriptive statistics adopted in this study included frequencies, mean, percentages and standard deviation. Additionally, inferential statistics of regression models and correlation analysis were used to examine the relationship of the study variables. The scrutinized data were presented in form of frequency tables and pie charts. Findings- The results of the study revealed that 53.71% of the respondents make use of the intuitions when evaluating ...

2022, Journal of Economics, Business & Accountancy Ventura

This study aims to examine the effect of risk perception, risk tolerance, overconfidence, and loss aversion on investment decision making. The sample in this study were workers in Surabaya and Jombang, East Java. There were 400 respondents taken using a questionnaire through the survey method. This study used PLS-SEM (Partial Least Square-Structural Equation Model) as a data analysis technique. The results showed that risk perception has a significant and negative effect on investment decision making, risk tolerance and overconfidence have a significant and positive effect on investment decision making, while loss aversion has no effect on investment decision making. This research is expected to provide an overview of how to deal with risk in investment and how to avoid behavioral biases in investment decisions making.

2022, Borsa Istanbul Review

This is a PDF file of an article that has undergone enhancements after acceptance, such as the addition of a cover page and metadata, and formatting for readability, but it is not yet the definitive version of record. This version will undergo additional copyediting, typesetting and review before it is published in its final form, but we are providing this version to give early visibility of the article. Please note that, during the production process, errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain.

2022, Universal Journal of Accounting and Finance

Decisions of an individual or investors' financial decisions are affected by behavioral or cognitive factors and not just knowledge. Decision-making is not in every case rational by nature. Investors make irrational decisions many times due to the influence of various cognitive factors. Moreover, the ongoing Covid-19 pandemic has added to the uncertainty around us. Every possible sector of business has been affected by it including financial markets. Aberration in investor behavior during this phase has also been observed and has led to deterrence in investors' financial decisions. The present study intends to focus on analyzing empirically and ascertain the impact of Covid-19 on the behavioral & cognitive aspects of financial investment. Primary data has been used for the purpose and was collected by distributing a structured questionnaire among the participating investors chosen by using the convenience sampling method. The sample size of the study is 200 practicing individual investors. Statistical tools like Descriptive Statistics, Correlation, Reliability, and Multiple Regression Analysis were employed for analyzing the data. In this paper, it is found that herd behavior lacks consistency and significance with anchoring having the highest impact on financial decisions taken by investors. The framing effect also has a very high influence on the financial decision-making process of investors. This research will be useful for the government and the policymakers in the country, brokerage houses, retail investors, financial analysts, and asset management companies. As Covid-19 is a time-bound phenomenon, financial decisions of investors may change when the situation normalizes.

2022

This dissertation is composed of two essays. In the first essay, we use the introduction of the first transatlantic trading platform NYSE Arca Europe (NAE), as an exogenous shock to examine the impact of market design on commonality in liquidity. We find that commonality in liquidity increases significantly for stocks traded in the NAE, specifically, the introduction of the transatlantic NAE trading platform increases the comovement of NAE stocks with NAE aggregate liquidity while their comovement with the home market aggregate liquidity decreases. Further, we find that the commonality in liquidity remains unchanged for matched non-NAE control sample stocks. Our results are robust to different methods for computing commonality, different liquidity proxies and across size quintiles. We conclude that market design and trading infrastructure has a significant impact on commonality in liquidity. The second essay investigates the impact of internal governance on stock market liquidity. A...

2022, PhD Dissertation

Our doctoral dissertation aims at developing a theoretical framework to analyze the behavior of the stock market in terms of statistical equilibrium. Focusing on the distribution of stock returns over different time horizons, we use information theory to provide further insights into the stochastic processes underlying a specific statistical configuration of the stock market.

2022

تهدف هذه الورقة إلى تسليط الضوء على الانحرافات الظاهرة في أسواق رأس المال التي فشلت النماذج المالية التقليدية في تفسيرها، وكذا معرفة مدى قدرة النظرية المالية السلوكية في شرح وفهم ما يحدث في أسواق رأس المال، حيث تقدم هذه النظرية تفسيرا علميا جديدا، يعتمد على وجود تحيّزات سلوكية تؤثر على سلوك المستثمرين وتدفعهم إلى اتخاذ قرارات استثمارية لا تتسم بالرشد وتنعكس سلبا على أدائهم الاستثماري، خلصت الدراسة أن النظرية المالية السلوكية قدمت تفسيرات أكثر منطقية للانحرافات في التسعير، وفهم أكثر عمقاً لعمليات الاستثمار والتداول في أسواق رأس المال، غير أنه بالرغم من كل النتائج والتفسيرات التي قدمتها المالية السلوكية حول أسواق رأس المال، إلا أنه لا توجد نظرية موحدة حقيقية للمالية السلوكية فهي تحتاج إلى مزيد من الأدلة تجريبية ورياضية.This paper highlights on the anomalies in the capital markets, that the traditional financial models have failed to explain, and the extent to which behavioral financial theory (BFT) can explain and understand what is happening in capital markets. The BFT provides a new...

2022

Satisfaction is an important measure of the desired level of happiness. The achievement of the desired financial level in order to achieve the happiness of life for the individual is symbolized by financial satisfaction. The behaviors undertaken by the individual can be a trigger for improvement in satisfaction. Investment and ethics are mutually beneficial relationships. Investment decision-making by investors will be measured ethically. Based on that, this research focused on analysis of the influence of investment ethics on the behavior of capital market investors and its impact on capital market investors' financial satisfaction. The research showed that investment ethics affected financial satisfaction, investment ethics also affected investor behavior. Moreover, investor behavior influenced financial satisfaction. This research also indicated that investment ethics influenced financial satisfaction with investor behavior as intervening. Keyword: Ethics, Investor Behavior, ...

2022, Proceedings of the Proceedings of the 19th Annual International Conference on Islamic Studies, AICIS 2019, 1-4 October 2019, Jakarta, Indonesia

Islamic investment has arisen as an excellent choice for investors to invest in following their beliefs. Religiosity and financial knowledge as part of personal factors were claimed to stimulus investors in investment decision-making. Ultimately, Islamic investing contributes to the achievement of financial satisfaction. This rare topic is compelling to be discussed in relation to capital market behavior and financial satisfaction. The paper aimed to explore the role of religiosity and financial knowledge of Islamic investing and its impact on financial satisfaction. Data was collected from the questionnaire and analyzed quantitatively. The sample was 227 respondents and structural equation modeling was used to explore the relationship of each variable in this paper. The result showed that religiosity and financial knowledge played a role in Islamic investing. In terms of financial satisfaction, financial knowledge directly influenced financial satisfaction while religiosity did not. However, both religiosity and financial knowledge affected financial satisfaction through Islamic investing. The result implicitly stated that Islamic investing was a good mediator for religiosity and financial knowledge in achieving financial satisfaction.

2022, The Lumbini Journal of Business and Economics

This study attempts to examine individual investor’s psychology and their investment decision in NEPSE with an objective to identify whether the individual psychological factors and their biases influence decision making in Nepalese stock market. The sample size of 347 was taken from broker office located in Butwal city for this study. Psychological factors named anchoring, herding, mental accounting, overconfidence; regret aversion and loss aversion were undertaken. These factors were further categorized as cognitive bias (anchoring, herding and mental accounting) and emotional bias (overconfidence, regret aversion and loss aversion). Self-administered questionnaire were used to collect data. In the same way descriptive and analytical research design were used to analyze the data. Multiple regression analysis showed that overconfidence, herding and loss aversion have impact on investment decision whereas anchoring, mental accounting and regret aversion does not have an impact on in...

2022, Journal of Economics, Business & Accountancy Ventura

This study aims to examine the effect of risk perception, risk tolerance, overconfidence and loss aversion on investment decision making. The sample in this study were people who had lived at least three years in Surabaya and Jombang and had jobs. There were 200 respondents taken using a questionnaire through the survey method. This study uses PLS-SEM (Partial Least Square-Structural Equation Model) as a data analysis technique. The results of this study indicate that risk perception has a significant negative effect on investment decision making, risk tolerance and overconfidence have a significant positive effect on investment decision making, while loss aversion has no effect on investment decision making. This research is expected to provide an overview of how to deal with risk in investment and how to avoid behavioral biases in investment decisions making.

2022, SSRN Electronic Journal

Primary objective of this paper was to investigate the impact of information uncertainty and cognitive profile of investors on herding behavior. We analyzed the behavior of investors influenced by the decision of other investors due to the lack of information and cognitive profile of investors. Well-designed experiments in three sessions are conducted for this study. These experiments were conducted in three stages to check the impact of different levels of information and conditions on the herding behavior. This study reflects that there is a positive relationship between the information uncertainty and the biasness of investor's behavior and occurrence of herding. Studies also reveal that the previously existing financial information and previously shown behavior in the market also encourages the herding phenomenon prevailing in the market. Researches indicate that the change in the Cognitive profile of the investors is more significant due to the increase in the financial information and the historical record of the transaction. There is also a significant change in the biasness of the investor due to the public information.