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Article
Publication date: 9 June 2020

Haritha P.H. and Rashmi Uchil

The purpose of this paper is to determine whether individual investor sentiment and its factors influence investment decision-making behavior in the Indian stock market…

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Abstract

Purpose

The purpose of this paper is to determine whether individual investor sentiment and its factors influence investment decision-making behavior in the Indian stock market. The study contributes to the novel conceptual framework that integrates the impact of investor sentiment and outlines the role of its factors (herding, media factor, advocate recommendation and social interaction) during the investment decision-making process.

Design/methodology/approach

In this paper, data were collected using a structured questionnaire survey from Indian individual investors. It uses self-reported sources of information collected via a survey of individual investors and estimated the linkage via path modeling. The collected data were analyzed using partial least square structural equation modeling to examine the relationship between the construct, namely, herding, media, advocate recommendation and social interaction with investor sentiment and investment decision-making.

Findings

The study shows that herding, media factor, advocate recommendation and social interaction significantly and positively influence the investor sentiment. Among all the factors, social interaction has the lowest influence on investor sentiment. The study also reveals that investor sentiment has a positive impact on investment decision-making.

Practical implications

The study provides valuable insights for the individual investors, financial advisors, policymakers and other stakeholders. Knowledge of behavioral finance would enhance the decision-making capabilities of individual investors in the stock market. Thus, the study calls for the need to increase awareness among Indian investors about behavioral finance and its usefulness in investment decision-making. The paper also sheds light upon the influence of investor sentiment and its antecedents on investment decision-making. The study confirms that the investor relies on their sentiment while making investment decisions. Hence, the stakeholders in the stock market should focus on investor sentiment and other psychological aspects of individual investors as well.

Originality/value

There are very few studies that deal with the behavioral aspects of individual investors in an emerging market context. The study mainly focuses on the antecedent of investor sentiment and its influence on investment decision-making in the Indian stock market. To the best of authors’ knowledge, the present study unique nature that examines the impact of the antecedent of investor sentiment which was not explored in the Indian context and investment decision-making of individual investors.

Details

Management Research Review, vol. 43 no. 11
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 10 February 2022

Muskan Sachdeva, Ritu Lehal, Swati Gupta and Sanjay Gupta

The behavioural decision-making process of individuals highlights the importance of investors’ sentiment and their correlation with the real economy. This paper aims to…

Abstract

Purpose

The behavioural decision-making process of individuals highlights the importance of investors’ sentiment and their correlation with the real economy. This paper aims to contribute to the literature of behavioural finance by examining the influence of contextual factors on investment decision-making.

Design/methodology/approach

Using a questionnaire, a total of 445 valid responses were collected from March to May 2021 through online sources. The current study uses a technique of Fuzzy-analytical hierarchical process (AHP) to assign relative weights to various contextual factors influencing investment decision-making. Harman’s single factor test was used to check common method bias.

Findings

Results of the study reveal that accounting information, self-image/firm-image coincidence, and neutral information as the top-ranked factors in influencing investment decisions, whereas advocate recommendation and personal financial needs emerged as less important factors in influencing investment decisions.

Research limitations/implications

The current study collects data from Indian stock market investors, which may limit the generalization of the study to India only. Moreover, this study is cross-sectional in nature, and there are numerous factors that are not part of the study but might significantly influence the investors’ decision-making process.

Practical implications

The research has implications for both academicians working in the area of behavioural finance and practitioners’ who are active in stock markets, more specifically dealing with retail investors and in the domain of personal finance. Also, the current study will accommodate different groups, i.e. policy makers, financial advisors, investors, investment professionals, etc. in carrying out their professional work.

Originality/value

The current study will provide a comprehensive overview of individual investor behaviour. To the best of the authors’ knowledge, the present study is one of its kind to use the Fuzzy-AHP technique for evaluating the relative ranks of contextual factors influencing investment decision-making.

Details

Journal of Asia Business Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 27 November 2019

Hossein Sayyadi Tooranloo, Pedram Azizi and Ali Sayyahpoor

Changes in economic markets have made it necessary to understand the psychology of individual investors. Conducting effective studies on the decision of investors to buy…

Abstract

Purpose

Changes in economic markets have made it necessary to understand the psychology of individual investors. Conducting effective studies on the decision of investors to buy stock in the stock market can be useful. Therefore, it is necessary to identify and prioritize the factors affecting the decision-making of investors to purchase shares of the stock exchange. The purpose of this study was to analyze causal relationships and to weight effective factors on individual investment to purchase shares of Tehran Stock Exchange.

Design/methodology/approach

The present study is applied research in the term of its purposes and a descriptive-survey one in the term of data gathering methods. The data required in this study was collected through library and field studies. The study population included 35 investment experts. In present study, multi-criteria decision-making techniques in type-2 fuzzy environments have been used to analyze the causal relationships and weighing the factors affecting individual investment in purchasing stock in the stock market.

Findings

In the study, 4 indicators and 20 sub-indicators influencing individual investors’ decision to purchase shares of Tehran Stock Exchange were selected based on the literature review in the field of investment in the stock exchange, as well as interviews with experts. Analyzing the opinions of experts showed that they have much paid attention to financial index compare to the economic, political and psychological indicators of the market in determining the priority of indicators. In analyzing sub-indicators, it was identified that Iranian investors pay special attention to economic and political developments, political news and international economic developments.

Research limitations/implications

The present study has been carried out in Iran, and therefore, is geographically limited to Iran. In thematic terms, it is limited to effective factors of individual investments in Tehran Stock Exchange. The statistical population of present study was limited to investing experts in Tehran Stock Exchange. The difference in financial, economic, social and political conditions of individuals was another limitation of present study. The main consequences of research were the explanation of causes of investors’ higher attention to financial factors than economic, political and mental factors of market in buying stocks.

Originality/value

Given the uncertainty in the market status, using multi-criteria decision-making techniques in financial analysis can help decision-makers to make better decisions. In addition, it would be possible to take into account many variables that do not have a mathematical aspect but are important in decision-making and lead to increased decision-making satisfaction. The research initially analyzed causal relationships of determinants of individual investment on stock exchange for buying stocks through a type-2 fuzzy approach.

Details

International Journal of Ethics and Systems, vol. 36 no. 1
Type: Research Article
ISSN: 2514-9369

Keywords

Article
Publication date: 15 October 2020

Renu Isidore R., P. Christie and C. Joe Arun

Decision-making in the equity market has been a challenging task for investors belonging to all age groups. This study aims to find linkages between the decision-making…

Abstract

Purpose

Decision-making in the equity market has been a challenging task for investors belonging to all age groups. This study aims to find linkages between the decision-making techniques in the equity market and the biological age of the investor.

Design/methodology/approach

This is an exploratory study and by surveying a sample of 436 secondary equity investors residing in the Chennai region of India, the study measured the decision-making techniques. Using the ANOVA test, the decision-making technique mostly used by investors belonging to an age category was determined. Further, the linkages were investigated in isolation for the male and female investors. By using regression analysis, a model was developed to predict the actual equity return. The financial characteristics of the various age groups were also analyzed using cross-tabulation.

Findings

The results of the study show that the age of the investor plays an important role in the choice of decision-making technique used. The younger investors, who earn the lowest returns were less likely to use industry analysis but more likely to use technical analysis and advocate’s recommendation. Specifically, the younger male investors were less likely to use industry analysis and more likely to use the advocate’s recommendation. The younger female investors were also less likely to use industry analysis. The middle-aged respondents, who earn the highest return were less likely to use technical analysis and advocate’s recommendation owing to lower means. Specifically, the middle-aged male investors were less likely to use the advocate’s recommendation and technical analysis. Then, middle-aged female investors were more likely to use industry analysis.

Originality/value

The findings would be beneficial for financial advisors and wealth managers to suggest age-appropriate strategies for the various investor groups. This age-based profiling of investors would make investors aware of their decision-making techniques and encourage them to make more rational decisions.

Details

Qualitative Research in Financial Markets, vol. 13 no. 1
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 1 August 2001

Yves Gendron, David J. Cooper and Barbara Townley

This article investigates the role of the state auditor in Alberta. An analysis of the Office of the Auditor General of Alberta’s annual reports shows that the role of the…

6632

Abstract

This article investigates the role of the state auditor in Alberta. An analysis of the Office of the Auditor General of Alberta’s annual reports shows that the role of the Office has significantly changed to promote and encourage the implementation in the public sector of a particular type of accountability informed by new public management. The authors argue that the Office has increased its power to influence politicians and public servants about the merits of its specific understanding of what accountability should be. However, as the Office becomes more powerful, it also becomes more vulnerable to complaints about a lack of independence from the executive. Indeed, the Office is now so closely associated with new public management that we believe that it is difficult for the Office to sustain the claim that it is able to provide independent assessments of public‐sector administration.

Details

Accounting, Auditing & Accountability Journal, vol. 14 no. 3
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 24 September 2019

Haritha P.H. and Rashmi Uchil

The purpose of this paper is to analyze the relationship between the factors influencing investors sentiment and investment decision-making (DM) of the individual…

1077

Abstract

Purpose

The purpose of this paper is to analyze the relationship between the factors influencing investors sentiment and investment decision-making (DM) of the individual investors. This paper proposes a unique conceptual framework that incorporates the herding, market and awareness factors that are leading to investor sentiment (IS) and decision-making process of the individual investors.

Design/methodology/approach

This study has conducted a questionnaire-based survey to collect data from 875 individual investors through the convenience sampling method. Structural equation modeling was used to evaluate the relationship between factors, namely, market effect, herd behavior, media, social interaction and advocate recommendation that influences IS and DM.

Findings

The present study found that market effect and herding are the most significantly influencing factors of investors sentiment. Among the sources of awareness, the internet has the lowest influence when compared to media, social interaction and advocate recommendation.

Practical implications

This study will help individual investors to avoid the problems faced while making an investment decision. The study could help investors to select a suitable investment aid and avoid repeating expensive errors, which arise due to investors’ sentiment. It is recommended to increase the awareness regarding investors’ sentiment among individuals, so as to increase their understanding about the financial settings and to make them confident while investing. The present study also sheds light upon the behavior of Indian individual investors so that policymakers can take appropriate measures to provide the proper guidance. Policymakers can conduct awareness campaigns to increase investors’ knowledge on the market condition and to enhance proper investment DM among them.

Originality/value

To best of the authors’ knowledge, previous studies have focused on limited factors at a time. The present study has investigated how factors influencing investors sentiment, namely, market factors (MF), herding as well as awareness would influence investment DM among individual investors in India. The influence of these factors has never been studied simultaneously in the context of Indian individual investors’ DM.

Details

Journal of Advances in Management Research, vol. 17 no. 1
Type: Research Article
ISSN: 0972-7981

Keywords

Book part
Publication date: 27 October 2017

Danielle MacCartney

Purpose: This chapter explores the relationship between international human rights and the domestic practices of nation-states around lesbian, gay, bisexual, and…

Abstract

Purpose: This chapter explores the relationship between international human rights and the domestic practices of nation-states around lesbian, gay, bisexual, and transgender (LGBT) rights.

Methodology/approach: Using Sweden and Russia as case studies, this chapter analyzes LGBT human rights recommendations from the cyclical United Nations Universal Periodic Review and how they affect practices within nation-states.

Findings: Sweden embraces recommendations to strengthen LGBT human rights and institutes stronger national LGBT rights policies of its own, while Russia’s compliance with LGBT rights recommendations is low. Further, reports of LGBT victimization show that the severity of attacks on LGBT people is pronounced in Russia.

Social implications: Relying on case studies limits the generalizability of this study, but the implications of these findings suggest that, to strengthen human rights compliance and improve the lives of minority citizens, human rights advocates should take note of domestic ideologies and leverage the institutional environment of the world society to provide information, resources, and pressure to facilitate nation-states’ compliance with international human rights recommendations.

Originality/value: This chapter deepens the discourse on the contested realm of international LGBT rights by highlighting the dynamics between international monitoring mechanisms, domestic discourse, and domestic law.

Details

Gender Panic, Gender Policy
Type: Book
ISBN: 978-1-78743-203-1

Keywords

Article
Publication date: 8 April 2019

Violetta Wilk, Geoffrey N. Soutar and Paul Harrigan

This paper aims to offer insights into the ways two computer-aided qualitative data analysis software (CAQDAS) applications (QSR NVivo and Leximancer) can be used to…

2240

Abstract

Purpose

This paper aims to offer insights into the ways two computer-aided qualitative data analysis software (CAQDAS) applications (QSR NVivo and Leximancer) can be used to analyze big, text-based, online data taken from consumer-to-consumer (C2C) social media communication.

Design/methodology/approach

This study used QSR NVivo and Leximancer, to explore 200 discussion threads containing 1,796 posts from forums on an online open community and an online brand community that involved online brand advocacy (OBA). The functionality, in particular, the strengths and weaknesses of both programs are discussed. Examples of the types of analyses each program can undertake and the visual output available are also presented.

Findings

This research found that, while both programs had strengths and weaknesses when working with big, text-based, online data, they complemented each other. Each contributed a different visual and evidence-based perspective; providing a more comprehensive and insightful view of the characteristics unique to OBA.

Research limitations/implications

Qualitative market researchers are offered insights into the advantages and disadvantages of using two different software packages for research projects involving big social media data. The “visual-first” analysis, obtained from both programs can help researchers make sense of such data, particularly in exploratory research.

Practical implications

The paper provides practical recommendations for analysts considering which programs to use when exploring big, text-based, online data.

Originality/value

This paper answered a call to action for further research and demonstration of analytical programs of big, online data from social media C2C communication and makes strong suggestions about the need to examine such data in a number of ways.

Details

Qualitative Market Research: An International Journal, vol. 22 no. 2
Type: Research Article
ISSN: 1352-2752

Keywords

Article
Publication date: 12 February 2021

Muhammad Junaid Khawaja and Zainab Nasser Alharbi

The objective of the study is to determine the factors influencing the behavior of investor in Saudi Stock Market.

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Abstract

Purpose

The objective of the study is to determine the factors influencing the behavior of investor in Saudi Stock Market.

Design/methodology/approach

The paper uses correlation analysis, factor analysis, reliability and multiple regression analysis on the primary data collected from 125 investors in Saudi Stock Market through a questionnaire distributed randomly.

Findings

The results indicate that the factors like past performance of the stocks, financial statements, firm status in industry, the reputation of the firm, and expected corporate earnings have significant influence on the behavior of investors. The factor of the image that a certain company has built for itself over the years on the basis of its financial practices is a large influencer of investor decisions as compared to advocate recommendation factors. The investment behavior is not significantly influenced by gender or age; however, it is significantly influenced by educational qualification, professional experience and investment volume.

Research limitations/implications

This paper limits itself to study the factors that influence the behavior of investors. However, it does not address the issue of investor overconfidence and its implications for Saudi Stock Market.

Practical implications

This research provides a road map for the investors interested in making their investment decisions by understanding the most influencing factors.

Social implications

This research has social implications for government agencies to delineate the required legislation to regulate the investors and also to increase market efficiency. The results show that investors are strongly affected by signals from the government.

Originality/value

This research is an original contribution toward the behavioral finance field in Saudi Arabia and can be used as a reference material for investors, companies and government policymakers in Saudi Arabia. This study incorporates investors' individual characteristics and explores factors that influence investor behavior unlike some previous studies using Saudi data.

Details

International Journal of Social Economics, vol. 48 no. 4
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 9 April 2021

Youngtae Choi, Michael W. Kroff and Junga Kim

This paper aims to investigate how brands’ social media activities (credible content delivery, co-creation and responsiveness) impact brand advocacy. The paper also…

Abstract

Purpose

This paper aims to investigate how brands’ social media activities (credible content delivery, co-creation and responsiveness) impact brand advocacy. The paper also examines the influence of brand advocacy on purchase intentions of brand advocates and the moderating effect of the amount of time spent on Facebook on the relationship between brand advocacy and purchase intentions. Finally, the moderating effect of brand type (goods vs services) on the relationship between brands’ activities and brand advocacy is explored.

Design/methodology/approach

US adults who use Facebook as their primary social media platform participated in a survey via Amazon Mechanical Turk. Structural equation modeling was used to test the proposed hypotheses.

Findings

The three brand activities are positively related to users’ advocacy of brands toward other users. Brand advocacy also positively influences purchase intentions of brand advocates. The amount of time spent on Facebook moderates the relationship between brand advocacy and purchase intentions. The brand type moderates the relationship between co-creation and brand advocacy.

Originality/value

This study differs from the existing research, which has typically used a user-oriented perspective (e.g. impact of user motivations) to explain brand advocacy and has not considered the outcome of brand advocacy on the brand advocates’ purchase intentions.

Details

Journal of Consumer Marketing, vol. 38 no. 3
Type: Research Article
ISSN: 0736-3761

Keywords

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