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The trend towards internationalisation in many service industries has increased the need for both managers and academics to collect cross‐cultural/national consumer‐perceived service quality data. Failure to establish cross‐cultural equivalence and to detect differences in cross‐national response bias will, however, affect data comparability, may invalidate the research results and could therefore lead to incorrect inferences about attitudes and behaviours across national groups. By initially focussing on developments in the mono‐cultural service quality literature, a framework is presented whereby academics and managers can assess the potential impact of these international measurement issues. Existing cross‐cultural service quality literature is reviewed and the extent to which these issues are addressed is highlighted. Methods for detecting and correcting cross‐national response biases are discussed.

The purpose of this paper is to critically review past recommendations to correct for cultural biases in empirical survey data sets, and propose a framework that enables the researcher to assess the robustness of empirical findings from culture‐specific response styles (CSRS).

The paper proposes to analyze a set of derived data sets, including the original data as well as data corrected for response styles using theoretically plausible correction methods for the empirical data at hand. The level of agreement of results across correction methods indicates the robustness of findings to possible contamination of data by cross‐cultural response styles.

The proposed method can be used to inform researchers and data analysts about the extent to which the validity of their conclusions is threatened by data contamination and provides guidance regarding the results that can safely be reported.

Response styles can distort survey findings. CSRS are particularly problematic for researchers using multicultural samples because the resulting data contamination can lead to inaccurate conclusions about the research question under study.

The proposed approach avoids the disadvantages of ignoring the problem and interpreting spurious results or choosing one single correction technique that potentially introduces new kinds of data contamination.

Considers the issue that Chinese people are more confident than Americans when answering general knowledge questions. Suggests that this over‐confidence may be indicative of other biases, such as over‐confidence in the ability to retrieve information accurately from memory. Presents empirical results demonstrating that the Chinese subjects were not over‐confident in their estimate of retrieval accuracy. Suggests the accuracy‐confidence correlation for Chinese subjects was significantly higher than the correlation for Western subjects. Discusses implications for current theories of judgement research and consequences for marketing.

Work values and attitudes were compared for 117 African and 82 British managers and management students. It was predicted that Africans would place more importance on status, prestige and position as motivators, would be less likely to accept criticism, and rate courtesy, social approval and loyalty more favourably than British respondents. Existing scales of social approval and derived need satisfaction were modified and a third one constructed in order to obtain the measurements. The results confirmed the hypothesis relating to status, prestige, position, tentatively supported that relating to social approval, partly confirmed the hypothesis for loyalty and the results for courtesy and acceptance of criticism were not proven. These results are discussed in terms of the methodological issues associated with cross‐cultural comparisons and the implications for motivation and management activities.

Pioneer advantage is derived from two sources: producer‐based advantages and consumer‐based advantages. The latter is relatively under‐researched. This research replicates and extends Alpert and Kamins’ (1995) research, which was the first to directly survey consumers. Since their research occurred only in the USA, cross‐cultural replication is appropriate, (Hubbard and Armstrong, 1994). Key results show that: consumers are able to recall a brand’s pioneering status; pioneer brands generally have higher recall or retrieval than other brands including the market leader; communication of pioneer status may enhance purchase interest, both at the time of the product’s introduction and years after its introduction. These results support the US findings, and are rather more positive. However, British consumers did not agree that, if all other things were equal, they would prefer the pioneer brand. This research also shows for the first time that identification of pioneer status is related to actual purchase of that brand.

This article aims to systematically review the literature published in recognized journals focused on cognitive heuristic-driven biases and their effect on investment management activities and market efficiency. It also includes some of the research work on the origins and foundations of behavioral finance, and how this has grown substantially to become an established and particular subject of study in its own right. The study also aims to provide future direction to the researchers working in this field.

For doing research synthesis, a systematic literature review (SLR) approach was applied considering research studies published within the time period, i.e. 1970–2021. This study attempted to accomplish a critical review of 176 studies out of 256 studies identified, which were published in reputable journals to synthesize the existing literature in the behavioral finance domain-related explicitly to cognitive heuristic-driven biases and their effect on investment management activities and market efficiency as well as on the origins and foundations of behavioral finance.

This review reveals that investors often use cognitive heuristics to reduce the risk of losses in uncertain situations, but that leads to errors in judgment; as a result, investors make irrational decisions, which may cause the market to overreact or underreact – in both situations, the market becomes inefficient. Overall, the literature demonstrates that there is currently no consensus on the usefulness of cognitive heuristics in the context of investment management activities and market efficiency. Therefore, a lack of consensus about this topic suggests that further studies may bring relevant contributions to the literature. Based on the gaps analysis, three major categories of gaps, namely theoretical and methodological gaps, and contextual gaps, are found, where research is needed.

The skillful understanding and knowledge of the cognitive heuristic-driven biases will help the investors, financial institutions and policymakers to overcome the adverse effect of these behavioral biases in the stock market. This article provides a detailed explanation of cognitive heuristic-driven biases and their influence on investment management activities and market efficiency, which could be very useful for finance practitioners, such as an investor who plays at the stock exchange, a portfolio manager, a financial strategist/advisor in an investment firm, a financial planner, an investment banker, a trader/broker at the stock exchange or a financial analyst. But most importantly, the term also includes all those persons who manage corporate entities and are responsible for making their financial management strategies.

Currently, no recent study exists, which reviews and evaluates the empirical research on cognitive heuristic-driven biases displayed by investors. The current study is original in discussing the role of cognitive heuristic-driven biases in investment management activities and market efficiency as well as the history and foundations of behavioral finance by means of research synthesis. This paper is useful to researchers, academicians, policymakers and those working in the area of behavioral finance in understanding the role that cognitive heuristic plays in investment management activities and market efficiency.

The main purpose of this study was to examine the investment decision behaviour of retail investors in Malaysia.

The study adopted semi-structured interviews to solicit an understanding of six retail investors on investment decision behaviour in Malaysia. Content analysis technique was used to analyse the data and verbatim texts were applied in discussing the emergent themes.

The findings indicate that retail investors in Malaysia are patriotic in nature, and their investment decisions are based on feeling of comfort or convention rather than quantitative analysis. They rely so much on their findings rather than third party’s views for making investment decisions. They were influenced by the psychological biases because they herd on the information. Challenges are solved through experience, and they believe that proper understanding of the financial and economic settings of the country can enhance better investment decision-making.

A more detailed investigation on the investors’ behaviour with more samples may expand our understanding of this issue. Future studies need to examine the investment decision behaviour with more samples.

First, it will prepare hit and run investors to be more ready to remain in the market and improve their skills on how to make sound investment decisions. Second, it helps the investors to know that knowledge of traditional finance theory is not sufficient to excel in stock market, and, hence, they need to know more about behavioural finance. Third, investors are exposed to various reasons as to why investment decisions deviate from expected and different means of solving the challenges faced in making investment decision within the Malaysian context. Fourth, investors are reminded that understanding the financial settings before investing is essential. Finally, policy makers in stock market are able to understand the retail investors’ behaviour.

This study examines the experience and prospect to remain as stock market investors, their priorities in selecting the right company for investment purposes, the kind of information seeking from third parties, the challenges faced by them and other important considerations in investment decisions. These have never been examined together in this way in investigation of retail investors’ investment behaviour.

Young children, often called as teenagers (13-14 years) and tweenaged (8-12 years), are the new potential game changers for the big corporate. This paper aims to analyze Arab children’s influence for various products and services and across different buying process stages. The primary survey was conducted to capture a child’s role in family decision-making by analyzing their consumer socialization, influencing strategies and their influence across various products and buying stages.

Based on the review and the research gap, a bilingual questionnaire in English and Arabic language was developed. The research study was organized in three stages. It commenced with a pilot study conducted with ten school students in the age group of 8-10 years. The second stage involved contact with the schools by telephone to brief them on the purpose of the study and to request the participation of their students. The last stage was based on the survey conducted in the time period of September-November 2016-17.

Almost 25 per cent of the children surveyed prefer to buy stationary and books after discussing with their parents. On the other hand, food/beverage is one particular item where children go ahead and buy theses item themselves even without discussing with their parents (42.50 per cent of the total respondents). As per children’s perception, they are most influential in the final decision stage (mean = 1.84 and SD = 0.499), followed by search and evaluation stage (mean = 1.80 and SD = 0.441) and start stage (mean = 1.79 and SD = 0.488).

Further research is needed in Arab countries, especially with parents of different social status, as their shopping behaviour is expected to differ. Also, as this analysis is based on child’s perception, parents’ views must also be analyzed for better results.

The is the first-of-its-kind research in the Gulf region. This empirical research highlights the need for global marketers to understand the distinct features and identity of a young Arab consumer. Despite Oman being a very traditional culture which emphasizes on conformity to group norms and social acceptance and hence confirms to collectivistic culture, where kids are supposed to be obedient, there is this new wave of super energetic, more informed young kids who take their own consumer decisions.

After going through the extensive literature review of different countries/cultures, there has been very clear understanding that despite being an important family member, almost no research has been focussed on kids in gulf nations.

The house money effect is proposed to describe that people appear to consider large or unexpected wealth gains to be distinct from the rest of their wealth, and are thus more willing to gamble with such gains than they ordinarily would be. On the other hand, the availability heuristic describes that people tend to have a cognitive and systematic bias due to their reliance on easily available or associational information. The purpose of this paper is to employ these behavioral perspectives in an empirical model regarding the January anomaly to explore investor behavior in Taiwanese stock market with bonus culture and well-known electronics industry.

This study uses the conventional and standard dummy variable regression model, as employed in prior studies, and further includes some control variables for firm, industry and macro-economic level factors. Moreover, 19 industrial indices for Taiwanese stock market over the period January 1990 to December 2014 are included in this study to examine the hypotheses, except for the 1997 Asian financial crisis and the global financial crisis period of 2007-2009 to avoid the potential effect. On the other hand, the authors also use the entire sample period of 1990-2014 for understanding whether the magnitude of January effect is different.

The empirical results indicate that Chinese bonus payments in January induce a strong January effect in the Taiwanese stock market, especially when most listed firms have positive earnings growth in the preceding year, suggesting a house money effect. Moreover, this study further provides some preliminary evidence that the higher January returns due to bonus culture are apparent only in the electronics industry when both Chinese New Year and bonus payments are in January, implying the role of availability heuristic based on the electronics stocks in investor behavior before the impending stock exchange holidays. Some robust tests show qualitative support.

The major contribution of this study is to extend the existing research by incorporating cultural and industrial factors with behavioral finance, thus enriching the literature on the causes of seasonality for Asian stock markets.

This study also has behavioral implications of investments for investors in the Taiwanese stock market, especially for foreign institutional investors which pay close attention to this market.

This study first applies and examines the culture bonus hypothesis with regard to how employees who receive culture bonuses in January can change their attitudes toward risk and induce the January effect from the concept of mental accounting. Moreover, this study further proposes and examines the extended culture bonus hypothesis related to how the January effect due to culture bonus is different for the electronics and non-electronics industries when taking into account the stock market holidays from the concept of availability heuristic.

This study aims to clarify the relationship between ethical orientation and earnings management perception phenomenon in the organization. It discusses to what extent earnings management is considered as a strategic adaptation or deliberate manipulation in an organization. The study also aims to expand the domain of ethical perspective of earnings management by considering mediating and moderating role of investor sentiment and corporate social responsibility (CSR) as inward pressure and outward commitment surrounding the organization, adopting a combined perspective of strategic management and also accounting discipline than is normally found in the ethics and earnings management literature.

The study opted for literature synthesis to define key concepts surrounding ethics and earnings management perception in the organization. Besides, it attempted to identify influential mediators and moderators in explaining the earnings management phenomenon in the organization. Consequently, the study identified the gaps in current research to draw upon a more holistic conceptual framework. The rationale for the research was justified within the body of research.

The study suggested research propositions based on the literature synthesis in view of ethics and earnings management perception in the organization. More specifically, it has proposed a conceptual framework, explaining the relationship between ethical orientation and a multi-dimensional view of earnings management perception. It is envisaged that the mediating and moderating role of investor sentiment and CSR incorporated in this conceptual study will improve the predictive value of the proposed framework and offer additional insights about factors that inhibit or advance ethical orientation and earnings management practices in the organization.

This paper suffers from the obvious limitation of lacking empirical investigation. However, it does provide a theoretical rationale for the argument that alteration of earnings can be controlled if ethical orientation is emphasized in the organization apart from insulating internal and external pressures to manage such phenomenon from happening in the organization. Perhaps, the most important direction for future research is further extension and validation of this framework by performing an empirical investigation to produce newer insights into this phenomenon.

This conceptual study is different from previous studies on the grounds it has considered unexplored issues linking inward pressures and outward commitments in explaining this phenomenon further. To bridge the critical knowledge gap of earnings management phenomenon, a mediating effect of investor sentiment as an inward pressure and a moderating role of CSR as an outward commitment are also integrated within the model. The proposed model neither formulated nor tested empirically in previous studies locally or, perhaps, globally, therefore, stands out as an original contribution in the study of ethical orientation and earnings management perception.