Index

Understanding the Investor: A Maltese Study of Risk and Behavior in Financial Investment Decisions

ISBN: 978-1-78973-706-6, eISBN: 978-1-78973-705-9

Publication date: 19 June 2019

This content is currently only available as a PDF

Citation

Bonello, A. (2019), "Index", Grima, S. and Spiteri, J. (Ed.) Understanding the Investor: A Maltese Study of Risk and Behavior in Financial Investment Decisions, Emerald Publishing Limited, Bingley, pp. 295-298. https://doi.org/10.1108/978-1-78973-705-920191007

Publisher

:

Emerald Publishing Limited

Copyright © 2019 Emerald Publishing Limited


INDEX

Note: Page numbers followed by “n” with numbers indicate notes.

Advice
, 170–181., (see also financial advisors)

disposition and
, 90, 96–98, 109–110, 111

Advisors.
, (see financial advisors)

Advisory service
, 220–221

Age
, 32

gender and
, 69–71, 69t, 71t

ANOVA
, 56, 57

Asian investors
, 41

Asset price
, 35–36

Banks

foreign
, 12

Maltese
, 12–13

Behavior, trading and
, 21–22

Behavioral bias
, 24–25

Bias

authors
, 217

behavioral
, 24–25

familiarity
, 181–185

incentive, lack of
, 63–64

interviews/interviewer
, 64–65

Bogus information.
, (see uncertain information)

Branding
, 37–38

Case studies
, 44

Chi-squared test
, 56

Competence bias
, 37

Confidence
, 25, 162–166., (see also overconfidence)

Cooperation
, 219

Costs
, 41, 199–203

Creative Research Systems
, 46

Culture
, 40–41

Data analysis
, 54–58

propositions
, 55–58

Survey Monkey
, 5

Data collection

logistics
, 52–54

methods
, 47–52

triangulation
, 60

Declaration of income
, 72, 77–78, 78t

Dependents
, 76, 77t

Design, research
, 43–44

Disposition
, 86–117

advice and
, 90, 96–98, 109–110, 111

annual income
, 106

buys and
, 107, 108

cutting losses and
, 89

gains making up for past losses
, 103–104

market and
, 99–102, 112–117

price and
, 88

reinvestment and
, 105

risk aversion and
, 23–24

Employment
, 72–73, 73t

Ethics
, 54

European Central Bank (ECB)
, 13

Expectations, and performance
, 20–21

Experiences, past.
, (see past experiences)

Familiarity
, 37–38, 181–185

Fear, for investors
, 189–193

Financial advisors
, 29–31, 219–220., (see also advice)

communication to customers
, 220

imparting advice
, 30–31

Financial investment.
, (see investment)

Financial literacy
, 29

promoting, strategic alliances for
, 220

Findings

recommendations
, 219–221

significance and originality
, 219

summary
, 205–207

Gender
, 31–32, 33t

age and
, 69–70, 69t, 71t

dependents by
, 77t

disparity in trading
, 72

employment by
, 72–73, 73t

income by
, 79t

marital status by
, 76t

Growth vs. value investing
, 17t

Herding
, 38–39, 185–189

Home ownership
, 77, 77t

Human behavior
, 63–64

Hungary
, 40

Incentive bias
, 63–64

Income
, 34

aging-societies
, 34

annual, disposition and
, 106

declaration
, 77–78, 78t

gender
, 79t

Information

advantages of
, 28–29

cascade
, 38

dissemination of
, 28

media and
, 36–37

omission of
, 217

promotional sources
, 147–149

risk and
, 19–20

uncertain
, 27, 28–29

Interest rate
, 12–13

central banks and
, 13

risk and
, 13, 15

Interviews

bias
, 64–65

semi-structured.
, (see semi-structured interviews)

unstructured in-depth
, 65

Investment
, 11–12., (see also investors)

knowledge of
, 151–156

in Malta
, 12–15

strategy
, 39–40

Investment Registration Schemes
, 12

Investors

asset price and sentiment of
, 35–36

behavior and trading
, 21–22

knowledge of investment
, 151–156

modern theory of
, 1

objectives of
, 12

traditional theory of
, 1

ISO 31000
, 40

Likert scale
, 49, 51

Limitations

loss aversion composite for
, 129–133

methodology
, 60–65

research
, 217–218

risk aversion vs.
, 124–129

Losses

cutting
, 89

gains making up for
, 103

waiting out
, 94

Malta

Constitution
, 3

European Union and
, 3–4

financial market
, 4

GDP
, 3

investment in
, 12–15

population
, 3

Malta Exchange Act of 1990
, 13

Malta Stock Exchange (MSE)
, 3, 4

annual reports
, 45

index
, 13

as regulated capital market
, 13

trading operations
, 13

Maltese Electoral Register
, 46

Mann–Whitney U tests
, 57, 159

Marital status
, 33–34, 74, 76t

Market
, 9–11, 77f

disposition and
, 99–102, 112–117

Markets in Financial Instruments Directive (MIFID II)
, 40

Maturity
, 162–165

Maximization process
, 1

Mean Rating Scores (MRS)
, 55, 57–58

Media
, 36–37, 149, 151

decision making and
, 149

familiarity
, 182

Methodology

data analysis
, 54–58

data collection
, 47–48

design
, 43–44

ethics
, 54

instrumentation
, 48–52

limitations
, 60–65

logistics
, 52–54

participant selection
, 44–47

summarizing tests
, 58–60

MFSA
, 8, 31, 45, 53

Misinterpretation
, 64

Mixed method approach (MMA)
, 47

MRS.
, (see Mean Rating Scores (MRS))

Nationality
, 72

Noise trading
, 27., (see also overconfidence)

Non-probability sampling
, 60–63

Non-response bias
, 60–63

Null hypothesis
, 56, 57–58

Occupation
, 73–74, 76t

Online survey
, 46, 48, 52, 53., (see also questionnaire)

Overconfidence
, 25–27

determining existence of
, 133–139

earnings and
, 144–146

effects of
, 25–26

noise trading and
, 27

overtrading and
, 139–144

reasons for
, 26–27

Panama Papers
, 46–47

Paper questionnaires
, 47, 52–53., (see also questionnaire)

Participant selection
, 44–47

population frame
, 44–46

sample size estimation
, 46

sampling
, 46–47

Past experiences
, 39, 193–199

Pearson correlation
, 58

Peer-reviewed journals
, 44

Performance, expectations and
, 20–21

Pilatus Bank
, 46–47

Price
, 86–117

asset
, 35–36

when goes down
, 86–101

when goes up
, 101–117

Price Pressure Hypothesis
, 35–36

Promotional sources
, 147–152

Propositions
, 5–6, 7, 43

acceptance/refusal of
, 215t–216t

conclusion on
, 209t–212t

confidence
, 165–170

data analysis
, 54–58

knowledge of investment
, 152–161

maturity
, 162–165

overconfidence
, 133–146

promotional sources of information
, 147–152

reflecting disposition effects
, 86–117

returns expectations
, 79–86

risk aversion.
, (see risk aversion)

Questionnaire
, 47, 48–51., (see also propositions)

data analysis.
, (see data analysis)

pilot-testing
, 50–51

pretested theories
, 48

questions
, 49

Regulation
, 40

Reinvestment, disposition and
, 105

Research

answers to questions
, 207, 208f

design
, 43–44

discussion
, 213–216

findings
, 205–207

future
, 218

limitations and mitigation
, 217–218

methodology.
, (see methodology)

recommendations
, 219–221

Response fatigue
, 63

Retail investors
, 41

Returns
, 79–86

expected rate of
, 79–81, 80t

as perceived by investor
, 81–86

Risk

defined
, 17–18

information and
, 19–20

perception and
, 19

return and
, 18–19

Risk appetite
, 2, 18

Risk aversion
, 117–133

composite for
, 124–129

defined
, 23

disposition and
, 23–24

loss aversion vs.
, 120–124

Risk profiling
, 1

Risk tolerance
, 2, 17–20

Scandals
, 46–47

Scatter plot
, 58, 58f

Selection of participant.
, (see participant selection)

Self-reporting questionnaire.
, (see questionnaire)

Semi-structured interviews
, 51–52

analysis
, 59–60

limitations
, 64–65

logistics
, 53–54

Status
, 33–34, 76–77

Strategic alliances, financial literacy and
, 220

Survey Monkey
, 55, 62

t-test
, 56–57

Time deviation
, 64

Timing as limitation
, 217–218

Trading

investor behavior and
, 21–22

noise
, 27

Trend chasing
, 39

Value vs. growth investing
, 17t

Wealth, value and
, 20

Weber, M.
, 22, 146, 170, 177