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Financial institutions actively seek to leverage the capabilities of artificial intelligence (AI) across diverse operations in the field. Especially, the adoption of AI advisors has a significant impact on trading and investing in the stock market. The purpose of this paper is to test whether AI advisors are less preferred compared to human advisors for investing and whether this algorithm aversion diminishes for trading.

The four hypotheses regarding the direct and indirect relationships between variables are tested in five experiments that collect data from Prolific.

The results of the five experiments reveal that, for investing, consumers are less likely to use AI advisors in comparison to human advisors. However, this reluctance to AI advisors decreases for trading. The author identifies the perceived importance of careful decision-making for investing and trading as the psychological mechanism. Specifically, the greater emphasis on careful decision-making in investing, as compared to trading, leads to consumers’ tendency to avoid AI advisors.

This research is the first to investigate whether algorithm aversion varies based on whether one’s approach to the stock market is investing or trading. Furthermore, it contributes to the literature on carefulness by exploring the interaction between a stock market approach and the lay belief that algorithms lack the capability to deliberate carefully.

The purpose of this paper is to discuss whether fair value accounting fits for long-term equity investments, which are considered key to retool economies according to sustainability criteria. In doing so, the paper focuses on the European Union and addresses the European Commission’s (2018a) concern that current accounting rules are unfit for achieving the United Nations Sustainable Development goals and the targets of the Paris Agreement on climate change.

The paper grounds in a wide literature review on the effects of fair value accounting on investors’ asset allocation strategies. By critically integrating literature on the notion of long-term investment with theories and possible accounting approaches, the paper provides implications for a revision of the current measurement system for long-term equity investments.

The literature review supports the view that fair value accounting has played a role in discouraging equity investments over time, thus leaving economies with poorer risk-sharing and weaker long-term investments. The paper contributes to the debate on alternative measurement systems by suggesting possible solutions in relation to controversies arising from empirical evidence.

Reorienting economies according to sustainability criteria represents an urgent issue which requires prompt and policy-oriented responses. Accordingly, this paper offers insights and guidelines that can help policymakers revise current accounting rules for long-term equity investments in line with sustainable development objectives.

This study aims to explore the views of pension beneficiaries and fund managers regarding greater involvement and investment autonomy and the attitudes toward diverse responsible investment criteria. The conventional form of investing is usually vulnerable to high financial market volatility events and financial crises, and most importantly, it has proven insufficient in addressing important social issues. A newly introduced investment culture known as impact investing strives for social gains in the long term rather than the maximization of financial returns by aiming to tackle social problems. However, some in the field claim that implementing such investment policies compromises the fiduciary responsibility of pension funds’ trustees to manage trust funds in the best interest of beneficiaries.

This study uses qualitative methods to explore the perception of proposed pension policies, such as beneficiaries’ greater involvement in determining pension investment policies that can have a positive long-term impact on their lives and on the provision of investment autonomy. For this purpose, the study investigates beneficiaries’ positions regarding responsible investment criteria from a freedom-of-choice perspective. The study sample consists of members and managers of a Dutch pension administrative organization with a cooperative structure. Three semi-structured, homogeneous discussions with focus groups containing between seven and nine participants each are conducted. The data are coded both deductively and inductively, following the framework approach, which is a qualitative data analysis method.

Participants demonstrate positive attitudes toward greater involvement and freedom of choice. However, the findings also indicate that members and pension fund managers have different views regarding responsible investment criteria. Members have more favorable attitudes toward responsible investment than do managers.

This research is limited to focus group discussions with managers and members in the Dutch healthcare sector.

How little the current pension system matches people’s investment preferences is a matter of concern, and the main implications of this research thus center upon designing a more democratic pension system for the future. Greater involvement by pension fund beneficiaries, whose roles are currently limited, would help legitimize responsible investing. This research implies that pension policies should be designed to align with the preferences of pension fund beneficiaries and be accompanied by diverse intervention strategies.

Pension reforms that encourage pension beneficiaries to exert greater influence in determining pension policy will help shrink the democratic deficit in collective pensions.

This study contributes to the literature on pension fund governance and long-term responsible investing by examining the attitudes toward impact and sustainable investments and by making suggestions for future research. To the best of the authors' knowledge, this study is the first to investigate the attitudes of pension fund participants toward targeted impact investments.

The paper takes a behavioral approach by making use of the prospect theory to unveil the impact of salience on short-term and long-term investment decisions. This paper aims to investigate the group differences for two types of investors’ groups, i.e. individual investors and professional investors.

The study uses partial least square-based structural equation modeling technique, measurement invariance test and multigroup analysis test on a unique data set of 277 active equity traders which included professional money managers and individual investors.

Results showed that salience has a significant positive impact on both short-term and long-term investment decisions. The impact was almost 1.5 times higher for long-term investment decision as compared to short-term decision. Furthermore, multigroup analysis revealed that the two groups (individual investors and professional investors) were statistically significantly different from each other.

The study has implications for financial regulators, money managers and individual investors as it was found that individual investors suffer more with salience heuristic and may end up with sub-optimal portfolios due to inefficient diversification. Thus, investors should be cautious in fully relying on salience and avoid such bias to improve investment returns.

The study concludes with a discussion of policy and regulatory implications on how to minimize salience bias to achieve optimum and diversified portfolios.

The study has significantly contributed to the growing body of applied behavioral research in the discipline of finance.

The literature has demonstrated that lump-sum (LS) outperforms dollar-cost averaging (DCA) in uptrend markets while DCA outperforms LS only when the asset price is mean-reverted or downtrend. To bridge the gap in the literature, this study aims to use both Sharpe ratio (SR) and economic performance measure (EPM) to compare the performance of DCA and LS under both accumulative and disaccumulative approaches when the asset price is simulated to be uptrend.

This study uses both disaccumulative and accumulative approaches to compare DCA with LS and uses both SR and EPM to evaluate their performance when the asset price is simulated to be uptrend. Instead of using the annualized returns that are commonly used by other DCA studies, we compute the holding-period returns in the comparison in this paper.

The simulation shows that no matter which approach is used, DCA outperforms LS in nearly all the cases in the less uptrend markets while DCA still performs better than LS in many cases of the uptrend markets, especially when the market is more volatile and investment horizon is long, regardless which approach the authors used. The authors also find more evidence supporting DCA over LS by using EPM, which is more suitable in the analysis because the returns generated by DCA are positive skewed and flat-tailed that are ignored when SR is used.

The authors conclude that DCA is a better trading strategy than LS for investment even in the uptrend market, especially on high risky assets.

Investors could consider choosing DCA instead of LS as their trading strategy, especially when they prefer long term investment and investing in high-risk assets.

Fund managers could consider recommending DCA to their customers, especially when they prefer long term investment and investing in high-risk assets.

This is the own study and, as far as the authors know, this is the first study in the literature uses both SR and EPM to compare the performance of DCA and LS under both accumulative and disaccumulative approaches when the asset price is simulated to be uptrend.

This paper aims to look at the three areas of corporate governance, intellectual capital and strategic business valuation from the perspective of a long‐term value investor.

The paper begins by briefly laying out the investment tenets of a long‐term value investor and then proceeds to align long‐term value investing with long‐term stewardship of economic resources. The paper is a transcript of a keynote presentation delivered at the 1st McMaster World Congress on Strategic Business Valuation.

In the area of intellectual capital the paper points out that the concept of intellectual capital falls far short of the fuller and more necessary view on intellectual knowledge which should be replaced or at least augmented with the notion of wisdom.

Any notion of strategic valuation or pricing of assets based on their economic value will be significantly impacted by one's investment principles and time horizon. The paper mentions two examples of inefficiencies in the market due to divergent time horizons. The two examples discussed are income trusts and principal protected notes.

One's investment philosophy or principles which largely determine time horizon will have a significant impact on how one approaches the important areas of corporate governance, intellectual capital and strategic business valuation. The concern of the paper is to the extent that we have become more short‐term in our investment principles; this will have serious long‐term negative impacts on the capital markets.

This paper seeks to unravel some of the challenges associated with responsible investment from the institutional investor's perspective, focusing on how dominant conventions influence investor behavior and their ability to invest responsibly.

The research draws from three longitudinal case studies that were carried out on UK institutions that have adopted a responsible investment policy.

Evidence of behavioral obstacles to responsible investing were found, including short‐termism, gravitation towards defensible decisions and reluctance to integrate corporate responsibility factors into the core investment process. Based on the case study evidence these appear to be driven by the influence of prevailing dominant conventions, reinforced by institutional herding tendencies.

The paper introduces some preliminary thoughts as to how conventions might be resisted and changed over time through the institutional herding mechanism. Further research is required (and is currently under way) to more closely examine the potential impact of investor collaboration for challenging dominant conventions.

Collaboration amongst institutional investors is key for mobilizing institutional herding tendencies so that responsible investment might get built into conventions.

The research combines responsible investment literature with behavioral finance studies on investor behavior, herding tendencies and the influence of conventions. It also illuminates the complexities in investor behavior from which other institutional investors might learn in implementing a responsible investment policy.

Avery and Bergsteiner's updated set of 23 sustainable leadership practices derived from sustainable enterprises and five performance outcomes provides a framework to examine the business practices of Thailand's largest conglomerate, Siam Cement Group (SCG). The aim of this paper is to build on and expand Kantabutra and Avery's study based on Avery.

The analysis was conducted by grouping Avery and Bergsteiner's principles into six categories, namely taking a long‐term perspective, investing in people, adapting the organizational culture, being innovative, exhibiting social and environmental responsibility, and behaving ethically. Adopting a multi‐data collection approach, research teams supplemented case study data with non‐participant observations from visits to the conglomerate and its training sessions. Multiple stakeholders were interviewed in semi‐structured interviews. Documentation and information supplied by, or published about, the conglomerate was consulted.

All six sets of practices, which sharply contrast with the prevailing business model of short‐term maximization of profitability but are consistent with the 23 sustainable leadership practices, were found to apply in varying degrees to SCG. A total of 19 applied strongly, with three others moderately strong.

Given that sustainable leadership principles are associated with enhanced brand and reputation, customer and staff satisfaction, and financial performance, the new Sustainable Leadership Grid provides corporate leaders with a useful checklist for this purpose.

This paper reports on the first examination of Avery and Bergsteiner's 23 sustainable leadership elements in a developing economy. It shows that even a publicly‐listed company can resist pressures to conform to business‐as‐usual practices and adopt the long‐term, socially responsible principles of “honeybee” sustainable leadership.

This chapter examines how innovation and research are essential to the advancement of science, the economy, and society. We examine the current status of scientific research in Saudi Arabia, highlighting issues like financial limitations and a lack of skilled researchers. We emphasize how important it is to develop the next generation of scientists in order to transform existing practices and improve the state of scientific research in the country.

Proficiency in research and innovation is crucial for expanding the frontiers of knowledge, empowering scientists to tackle intricate problems, and advancing scientific rigor. These abilities also support the use of evidence in decision-making, enabling researchers to provide empirical data that inform practices and policies in a variety of industries. Sustained growth requires the formation of future leaders, who promote knowledge exchange and multidisciplinary collaboration.

Despite Saudi Arabia’s significant spending on science, problems still exist. Addressing governance deficiencies is demonstrated by the establishment of the Research, Development, and Innovation Authority in 2021. The nation has grown in the world’s scientific rankings, drawing eminent specialists and fostering cross-border cooperation. Still, there is room for improvement, especially when it comes to fostering a culture of research, improving financing sources, and encouraging international collaboration. It is imperative that these problems are resolved in order to avoid stagnation, guarantee ongoing innovation, and take advantage of chances for society’s progress.

The chapter ends with a call to action that highlights how quickly improvements must be made. Failing to do so runs the risk of stifling the advancement of science, preventing the creation of new technologies, and prolonging complicated issues. To lower risks, seize opportunities, and ensure that research and innovation continue to advance for the good of society, immediate action is necessary.

Investors' behavior in financial markets is often under the influence of various psychological and cognitive factors, as well as personality characteristics. This research explores which behavioral factors and personality traits affect investment decisions and, consequently, investment performance.

A survey analysis was conducted on a sample of 310 investors in Croatia. Partial least squares structural equation modeling was used to obtain the results.

Overconfidence heuristic, prospect theory elements, emotions and stability and plasticity (as big two personality dimensions) positively affect investment decisions, while herding has a negative effect. Investment decisions, observed through the preference for long-term investments, consequently have a positive effect on the investment performance satisfaction.

This research proposes a unique comprehensive model of the effect of numerous different cognitive and psychological behavioral factors on investment decisions. Furthermore, the influence of investment decisions on investment performance is observed simultaneously. Understanding human behavior based on their personal characteristics can help investors to make better investment decisions. Advisors can learn from human behavior and guide their clients in the right direction when it comes to stock investment. Scientists will be able to replicate the model with other data and make comparative analyses.