Search results
1 – 5 of 5Manuel Lobato, Javier Rodríguez and Herminio Romero-Perez
This study aims to examine the herding behavior of socially responsible exchange traded funds (SR ETFs) in comparison to conventional ETFs during the COVID-19 pandemic.
Abstract
Purpose
This study aims to examine the herding behavior of socially responsible exchange traded funds (SR ETFs) in comparison to conventional ETFs during the COVID-19 pandemic.
Design/methodology/approach
To test for herding behavior, the authors use the cross-sectional absolute deviation and a quadratic market model.
Findings
During the pandemic, investments in socially responsible financial products grew rapidly. And investors in the popular SR ETFs herd during this special period, while holders of conventional ETFs did not.
Practical implications
Investors in socially responsible investments must do their own research and make their own financial decisions, rather than follow the crowd, especially during extreme events like the COVID-19 pandemic.
Originality/value
The evidence shows that, during the pandemic, socially responsible ETFs behaved in line with theoretical predictions of herding, that is, herding is more significant during extreme market conditions.
Details
Keywords
Godwin Musah, Daniel Domeher and Imhotep Alagidede
The purpose of this paper is to investigate investor herding behaviour and the effect of presidential elections on investor herding behaviour in African stock markets at the…
Abstract
Purpose
The purpose of this paper is to investigate investor herding behaviour and the effect of presidential elections on investor herding behaviour in African stock markets at the sector level.
Design/methodology/approach
The study segregates listed firms into financial, consumer goods, consumer services and basic materials sectors and uses the cross-sectional absolute deviation approach as a metric of detecting herding in each of the sectors. The authors extend the model to tease out the effect of presidential elections on investor herding behaviour.
Findings
The study reveals that sectoral differences are fundamental to the evolution of herding. Herding is prominent in a financial services sector dominated by banks. The phenomenon also prevails in markets with smaller consumer goods and services sectors. A post-presidential election effect on investor herding is found for the consumer goods and services sectors of Ghana and a pre-presidential election effect is documented in Nigeria's consumer services sector. The authors conclude that post-presidential election effect is as a result of political connections whilst a pre-presidential election effect is attributable to political business cycles.
Research limitations/implications
The study is based on four African countries due to data constraints. Nonetheless, the study is the first in Africa to the best of the authors' knowledge, and the results are very solid and have a lot of practical and policy implications.
Practical implications
The study has implications for investors as it guides investment behaviour in pre- and post-presidential election periods.
Originality/value
Past studies on investor herding behaviour in African stock markets have largely concentrated on the aggregate market. Knowledge on sectoral differences in investor herding is almost non-existent for African stock markets. Furthermore, premised on the fact that stock markets react to presidential elections, there is no known study that have attempted to examine the effect of presidential elections on investor herding behaviour. This paper contributes to the literature by providing evidence on sectoral differences in investor herding behaviour and the effect of presidential elections on sectoral herding behaviour.
Details
Keywords
Managers must make numerous strategic decisions in order to initiate and implement a business model innovation (BMI). This paper examines how managers perceive the management team…
Abstract
Purpose
Managers must make numerous strategic decisions in order to initiate and implement a business model innovation (BMI). This paper examines how managers perceive the management team interacts when making BMI decisions. The paper also investigates how group biases and board members’ risk willingness affect this process.
Design/methodology/approach
Empirical data were collected through 26 in-depth interviews with German managing directors from 13 companies in four industries (mobility, manufacturing, healthcare and energy) to explore three research questions: (1) What group effects are prevalent in BMI group decision-making? (2) What are the key characteristics of BMI group decisions? And (3) what are the potential relationships between BMI group decision-making and managers' risk willingness? A thematic analysis based on Gioia's guidelines was conducted to identify themes in the comprehensive dataset.
Findings
First, the results show four typical group biases in BMI group decisions: Groupthink, social influence, hidden profile and group polarization. Findings show that the hidden profile paradigm and groupthink theory are essential in the context of BMI decisions. Second, we developed a BMI decision matrix, including the following key characteristics of BMI group decision-making managerial cohesion, conflict readiness and information- and emotion-based decision behavior. Third, in contrast to previous literature, we found that individual risk aversion can improve the quality of BMI decisions.
Practical implications
This paper provides managers with an opportunity to become aware of group biases that may impede their strategic BMI decisions. Specifically, it points out that managers should consider the key cognitive constraints due to their interactions when making BMI decisions. This work also highlights the importance of risk-averse decision-makers on boards.
Originality/value
This qualitative study contributes to the literature on decision-making by revealing key cognitive group biases in strategic decision-making. This study also enriches the behavioral science research stream of the BMI literature by attributing a critical influence on the quality of BMI decisions to managers' group interactions. In addition, this article provides new perspectives on managers' risk aversion in strategic decision-making.
Details
Keywords
Hai Thi Thanh Nguyen, Tommi Tapanainen and Geoffrey Hubona
The advancement of technologies has made it possible for health-care organizations to provide convenient online services that enable people to manage their health conditions…
Abstract
Purpose
The advancement of technologies has made it possible for health-care organizations to provide convenient online services that enable people to manage their health conditions. Although many studies have investigated the adoption and benefits of e-health services, there has been little focus on health-oriented behaviors after adoption, particularly in relation to service quality and user satisfaction.
Design/methodology/approach
This paper is based on the SOR model and service quality theories to investigate behavioral responses, including word-of-mouth, intention to use and intention to act. The authors use a partial least squares structural equation modeling analysis with 194 participants and the diabetes risk test survey in Finland.
Findings
The results show that people are willing to engage in health self-management behaviors if they intend to use the e-health service and are satisfied with it. User satisfaction can be enhanced by improving the visual appeal of the website presentation, the quality of the presented information, as well as the usability of the website, all as components of e-health services.
Originality/value
The authors contribute by creating a construct “intention to act,” referring to health-oriented behaviors resulting from e-health service use. In addition, this study is among the first to apply the SOR model to investigate how user satisfaction leads to intention to use, intention to act and word-of-mouth.
Details
Keywords
Xiuyu Wu, Qinzhen Qian and Meng Zhang
Leaders' behavior has a critical impact on workers' safety behavior. However, previous studies have shown contradictive views on the effect of different leadership styles on…
Abstract
Purpose
Leaders' behavior has a critical impact on workers' safety behavior. However, previous studies have shown contradictive views on the effect of different leadership styles on safety behavior. One reason may be that the effectiveness of leaders' behavior varies according to diverse contexts. This study examines the effect of transformational and transactional leadership (TsL) on the safety behavior of on-site workers under different levels of social capital in construction projects.
Design/methodology/approach
Safety behavior is divided into three types: safety compliance (SC), organizational-oriented safety participation and individual-oriented safety participation (ISP). Questionnaire survey data were collected from 302 construction workers in the Chinese construction industry.
Findings
The results indicate that the positive effect of transformational leadership (TfL) of frontline supervisors on the two types of construction workers' safety participation is enhanced when social capital is high, although TfL has no significant effect on SC behavior. In contrast, TsL can promote construction workers' SC behavior and organizational-oriented safety participation and social capital positively moderating these relationships. TsL has no significant effect on ISP, but its interaction with safety behavior is positively related to ISP.
Research limitations/implications
This study explains the inconsistent findings of previous research related to the role of leadership in safety behavior by introducing the social capitaltheory and distinguishing safety participation into two typesThis study is confined to one specific country, future research may benefit from investigating whether the conclusions of this study will be different in other nations with diverse cultures.
Practical implications
The findings of the study provide frontline supervisors with new insights into improving workers' safety and the efficiency of leadership in safety management.
Originality/value
This study explains the inconsistent findings of previous research related to the role of leadership in safety behavior by introducing the social capital theory and distinguishing safety participation into two types.
Details