Search results
1 – 10 of over 1000Renu Isidore R. and Christie P.
The purpose of this paper is to test the relationship between the annual income earned by the investors and eight behavioural biases exhibited by the investors such as mental…
Abstract
Purpose
The purpose of this paper is to test the relationship between the annual income earned by the investors and eight behavioural biases exhibited by the investors such as mental accounting, anchoring, gambler’s fallacy, availability, loss aversion, regret aversion, representativeness and overconfidence.
Design/methodology/approach
The relationship is derived based on a questionnaire survey conducted on 436 secondary equity investors residing in Chennai, India.
Findings
Analysis of variance test was performed on the normalised and non-normalised version of the biases divided in terms of the annual income earned by the investor. The test found that for the significant biases except the overconfidence bias, the investors with higher annual income were less prone to the biases when compared to investors with lower annual income. On the other hand, with respect to the overconfidence bias, the investors with higher annual income were prone to exhibit overconfidence bias when compared to the investors with lower annual income. Correlation analysis showed that the investors with high annual income were more likely to exhibit higher overconfidence bias but lower representativeness, loss aversion, availability and mental accounting biases.
Originality/value
A contribution in the financial and economic front which would benefit the financial advisors to now consider the income earned by the clients as an important factor while giving financial advice to the clients and while guiding them about the biases they are prone to exhibit.
Details
Keywords
Giacomo Pigatto, John Dumay, Lino Cinquini and Andrea Tenucci
This research aims to examine and understand the rationales and modalities behind the use of disclosure before, during and after a corporate governance scandal involving CPA…
Abstract
Purpose
This research aims to examine and understand the rationales and modalities behind the use of disclosure before, during and after a corporate governance scandal involving CPA Australia (CPAA).
Design/methodology/approach
Data beyond CPAA's annual reports were collected, such as news articles, media releases, an independent review panel (IRP) report, and the Chief Operating Officer's letter to members. These disclosures were manually coded and analysed through the word counts and word trees in NVivo. This study also relied on Norbert Elias' conceptual tool of power games among networks of actors – figurations – to model the scandal as a power game between the old Board, the press, concerned members, the IRP and the new Board. This study analysed the data to reveal a collective and in fieri power balance that changed with the phases of the scandal.
Findings
A mix of voluntary, involuntary, requested and absent disclosures was important in triggering, managing and ending the CPAA scandal. Moreover, communication and disclosure fulfilled a constitutive role since both: mobilised actors, enabled coordination among actors, contributed to pursuing shared goals and influenced power balances. Such a constitutive role was at the heart of the ability of coalitions of figurations to challenge and restore the powerful status quo.
Originality/value
This research introduces to accounting studies the collective and in fieri dimensions of power from figurational theory. Moreover, the research sheds new light on using voluntary, involuntary, requested and absent disclosures before, during and after a corporate crisis.
Details
Keywords
Mohd Adil, Yogita Singh and Mohd. Shamim Ansari
The purpose of the study is to examine the impact of behavioural biases (i.e. overconfidence, risk-aversion, herding and disposition) on investment decisions amongst gender. The…
Abstract
Purpose
The purpose of the study is to examine the impact of behavioural biases (i.e. overconfidence, risk-aversion, herding and disposition) on investment decisions amongst gender. The authors further examine the moderation effect of financial literacy in the relationship between behaviour biases and investment decisions amongst gender.
Design/methodology/approach
The study considered a cross-sectional research design. For this survey, the data have been collected through a structured questionnaire from 253 individual investors of the Delhi-NCR region. To analyse the validity and reliability, the Pearson correlation and Cronbach's alpha test have been taken into account respectively. For testing the hypothesis, hierarchical regression analysis has been used in the study.
Findings
The results of the study reveal that amongst male investors, the influence of risk-aversion and herding on investment decision was negative and statistically significant, while the influence of overconfidence on investment decision was positive and significant. However, the influence of disposition was found statistically insignificant. The results stated that amongst female investors the effect of risk-aversion and herding on investment decision was negative and statistically significant. However, the effect of overconfidence and disposition was statistically insignificant influence the investment decision. It has been observed that financial literacy has significantly influenced investment decisions amongst male and female investors. The results of the interaction effect amongst male investors stated that the interaction between overconfidence and investment decision was significantly influenced by financial literacy. However, the interaction of financial literacy with the remaining three biases, i.e. risk-aversion, herding and disposition was found insignificant. The results for the interaction effect of financial literacy with overconfidence, risk-aversion, disposition and herding were found statistically significant amongst female investors.
Research limitations/implications
Based on this present research finding, the study is more productive for the portfolio manager and policymakers at the time of making an investment portfolio for the investors based on their behavioural biases. The study recommends that investors need training programmes, workshops and seminars that enhance financial literacy and financial knowledge of investors which helps them to overcome the behavioural biases while making an investment decision.
Originality/value
The current study aims to explore whether several behavioural biases can affect investment decisions amongst gender. Moreover, the authors would like to examine whether these associations are moderated by financial literacy. In this sense, financial literacy might also show a substantial part in the prediction of investments. The current study might be of the first study that examines the moderation effect financial literacy amongst male and female investors.
Details
Keywords
Matteo Cristofaro, Pier Luigi Giardino, Sanjay Misra, Quoc Trung Pham and Hai Hiep Phan
This paper claims to identify the behavioral and cultural features that push to use, or not, cryptocurrencies for electronic commerce. Indeed, despite the use of cryptocurrencies…
Abstract
Purpose
This paper claims to identify the behavioral and cultural features that push to use, or not, cryptocurrencies for electronic commerce. Indeed, despite the use of cryptocurrencies for electronic commerce spreading worldwide at a fast and growing pace, there are supporters and detractors among their users. The analysis of what distinguish these two groups of users is fundamental for understanding their different intention to use cryptocurrencies for electronic commerce.
Design/methodology/approach
A survey has been administered to 2,532 cryptocurrencies’ users across the USA and China, collecting data on their behavioral predispositions and cultural features. Results were then analyzed through structured equation modeling.
Findings
Results showed that while attitude, subjective norms, perceived behavioral control and herding behavior have a positive impact on the intention to use cryptocurrencies for electronic commerce, financial literacy has no influence. Cultural dimensions amplified or reduced the discovered relationships and caused different effects: positive for the USA and negative for China when considering illegal attitude and perceived risk.
Originality/value
Theory of planned behavior, financial behavior and cultural factors can, all together, represent a useful framework for envisioning the behavior of users in adopting cryptocurrencies for electronic commerce purposes through a test of all its elements. To the best of the authors’ knowledge, this is the first study considering behavior and cultural variables on the intention to use cryptocurrencies for electronic commerce as well as being the largest carried out, in terms of sample, on the cryptocurrency topic.
Details
Keywords
Mario Biggeri, Lisa Braito, Annalisa Caloffi and Huanhuai Zhou
This paper aims to analyse the evolution of Chinese industrial ethnic clusters in Italy, by focusing on the role of social networks and the processes behind the phenomenon of…
Abstract
Purpose
This paper aims to analyse the evolution of Chinese industrial ethnic clusters in Italy, by focusing on the role of social networks and the processes behind the phenomenon of Chinese worker exploitation and entrepreneur “self-exploitation”.
Design/methodology/approach
The case study is a sub-cluster of micro and small enterprises owned by Chinese entrepreneurs within the leather industrial district of Florence, Italy. This research adopts the following mixed methods: a small-scale survey to capture the characteristics of the sub-cluster and a social network analysis to describe cluster evolution, complemented by life-course interviews conducted with key informants and entrepreneurs.
Findings
Migrant social capital and social networks play a central role in the evolution of the case study sub-cluster. Social networks play a supportive role in migration, job creation, entrepreneurship formation and the creation of business opportunities. Simultaneously, they enhance the phenomenon of worker exploitation and entrepreneur self-exploitation. Furthermore, the more the business community grows, the more the economic performance of ethnic enterprises depends on agglomeration forces produced by the cluster.
Practical implications
The findings suggest a series of potential policies to upgrade the ethnic enterprises' capacities, to increase their formality and inclusion in the Italian social and economic systems and sub-cluster.
Originality/value
To the authors’ knowledge, this paper is the first attempt to examine the evolution of social networks in relation to the phenomenon of Chinese worker exploitation and entrepreneur self-exploitation in an ethnic industrial sub-cluster.
Details
Keywords
Tania Morris, Lamine Kamano and Stéphanie Maillet
This article describes financial professionals' perceptions of their clients' financial behaviors and the explanatory factors underlying these behaviors.
Abstract
Purpose
This article describes financial professionals' perceptions of their clients' financial behaviors and the explanatory factors underlying these behaviors.
Design/methodology/approach
In this qualitative research, the authors seek to understand financial professionals' experiences in relation to how their clients manage their own finances. The authors conduct and analyze 26 semi-structured interviews with financial professionals from several industries within the financial sector in Canada.
Findings
The professionals in this study noted that despite their clients' financial knowledge, several other factors can explain these individuals' financial behaviors. They include psychological factors (such as financial bias, the need for instant gratification, and the lack of awareness regarding the long-term effects of certain types of financial behaviors), financial habits (such as lifestyle, financial planning and lack of discipline) and the financial system's flexibility with respect to debt financing and repayment. These perceptions are categorized according to whether they are related to debt financing or repayment, savings or investments.
Originality/value
By using a qualitative methodology that relies on the perceptions of financial professionals, this study aims to better understand the financial behaviors of individuals and households, and these behaviors' underlying factors. This study's findings could be useful to various stakeholders interested, in one way or another, in financial literacy, such as organizations aiming to strengthen and promote financial literacy, educators, researchers, regulatory bodies of financial institutions and financial advisers.
Details
Keywords
Osama Sam Al-Kwifi, Allam Abu Farha and Zafar U. Ahmed
Since Islamic markets are growing substantially, there is an urgent need to gain a better understanding of how Muslim consumers perceive products from a religious perspective. The…
Abstract
Purpose
Since Islamic markets are growing substantially, there is an urgent need to gain a better understanding of how Muslim consumers perceive products from a religious perspective. The purpose of this paper is to investigate the brain responses of Muslim consumers to Halal and non-Halal products using a functional magnetic resonance imaging (fMRI) technology.
Design/methodology/approach
The research model is a simplified version of the theory of planned behavior. The initial experiment began by asking participants to divide a set of images into two groups: Halal and non-Halal products. The fMRI experiment uses a blocked design approach to capture brain activities resulting from presenting the two groups of images to participants, and to record the strength of their attitudes toward purchasing the products.
Findings
Across all participants, the level of brain activation in the ventromedial prefrontal cortex increased significantly when Halal images were presented to them. The same results emerged when the Halal images showed raw and cooked meat. The variations in the results may be due to the high emotional sensitivity of Muslim consumers to using religious products.
Research limitations/implications
This study uses a unique approach to monitor brain activity to confirm that consumers from specific market segments respond differently to market products based on their internal beliefs. Findings from this study provide evidence that marketing managers targeting Muslim markets should consider the sensitivity of presenting products in ways that reflect religious principles, in order to gain higher acceptance in this market segment.
Originality/value
Although the literature reports considerable research on Muslim consumers’ behavior, most of the previous studies utilize conventional data collection approaches to target broad segments of consumers by using traditional products. This paper is the first to track the reactions of the Muslim consumer segment to specific types of market products.
Details
Keywords
Mustafa Nourallah, Peter Öhman and Muslim Amin
The purpose of this study is to describe and analyse the effect of a set of determinants on initial trust and behavioural intention to use financial robo-advisors (FRAs).
Abstract
Purpose
The purpose of this study is to describe and analyse the effect of a set of determinants on initial trust and behavioural intention to use financial robo-advisors (FRAs).
Design/methodology/approach
The theory of perceived risk and the behavioural finance paradigm were used to develop a conceptual model of retail investors’ initial trust in FRAs. Data collected from 554 young retail investors (YRIs) from Sweden and Malaysia were analysed using structural equation modelling.
Findings
The results of this study indicate that the amount of public information, social media information-seeking and a rational decision style are significantly related to initial trust in FRAs, which in turn is significantly and positively related to the behavioural intention to use this technology. However, none of the risks under study significantly affect the initial trust in FRAs.
Practical implications
Information is vital to inducing YRIs to rely on FRAs, so the more public and social media information is available, the higher their intention to use this technology. However, YRIs vary in decision style, and the results suggest implementing a more sophisticated system than the current “one-size-fits-all” approach to YRI behaviour.
Originality/value
The empirical-based model enhances the knowledge of the initial phase of trust-building, when YRIs lack sufficient experience of FRAs. By collecting data from two countries, the study’s novel conclusions may help in developing effective FRA services for the youth segment.
Details
Keywords
Edoardo Lozza, Cinzia Castiglioni, Andrea Bonanomi and Federica Poli
The paper aims to examine whether financial advisors can understand the symbols and meaning that investors associate with money and whether such ability plays any role in…
Abstract
Purpose
The paper aims to examine whether financial advisors can understand the symbols and meaning that investors associate with money and whether such ability plays any role in enhancing the advisor-investor relationship in terms of satisfaction, level of trust, referral propensity and loyalty.
Design/methodology/approach
The authors used a dyadic research design. A total of 186 dyads of financial advisors and their clients took part in the study and completed two parallel self-administered questionnaires.
Findings
The authors found that financial advisors often can detect the emotional associations that their clients attribute to money. Such ability can enhance their relationship with investors.
Research limitations/implications
The main limitation of this study is its exploratory nature and the convenience sampling technique that was adopted. Therefore, researchers are encouraged to test the main findings further.
Practical implications
The results have implications for the development of ad-hoc psychological training to enhance the relationship between financial advisors and investors. Understanding the symbolic meanings and the emotions that clients associate with money may be a prerequisite for a financial services company to succeed and be competitive in the sector.
Originality/value
Despite acknowledging that money is not a neutral object but is layered with symbolic meanings and emotional associations, the behavioral finance literature has so far neglected to study these implications from either a theoretical or a practical point of view. This paper aims to fill this gap by investigating the symbolic value of money in the financial services industry.
Details
Keywords
Aliaksei Kazlou and Karl Wennberg
Economic integration of refugees remains a challenge for developed countries. Although refugees differ greatly from labor migrants in available resources and motivation toward…
Abstract
Purpose
Economic integration of refugees remains a challenge for developed countries. Although refugees differ greatly from labor migrants in available resources and motivation toward self-employment, prevailing studies on minority and ethnic entrepreneurship tend to lump these different categories of migrants together. Based on theories of migrants’ economic embeddedness, the purpose of this paper is to analyze the extent to which family- and kinship-based resources affect self-employment duration among refugees and labor migrants.
Design/methodology/approach
Based on Cox regression models, this longitudinal study estimates the self-employment duration of 10,519 refugees and 2,503 labor migrants starting businesses in Sweden in the period 2006–2012.
Findings
Results reveal that while refugees are at a disadvantage to labor migrants in terms of self-employment duration, their higher level of family embeddedness in part helps them overcome these disadvantages. For refugees but not for labor migrants, co-location in an ethnic enclave also lowers the risk of them becoming unemployed after a spell in entrepreneurship.
Originality/value
This original paper provides empirical and theoretical contributions to research on migrants’ self-employment success. It also discusses contributions for research on entrepreneurs’ social embeddedness and refugees’ entrepreneurship.
Details