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Open Access
Article
Publication date: 25 September 2023

Sutap Kumar Ghosh

This research mainly intends to ascertain the stimulus of investor investment tendencies on the amount of capital investment in the share market.

Abstract

Purpose

This research mainly intends to ascertain the stimulus of investor investment tendencies on the amount of capital investment in the share market.

Design/methodology/approach

Utilizing a sample of 477 individual investors who actively trade on the Bangladesh capital market, this empirical study was conducted. The objective of this examination is to ascertain the investment trading behavior of retail investors in the Bangladesh capital market using multiple regression, hypothesis testing and correlation analysis.

Findings

The coefficients of market categories, preferred share price ranges and investment source reveal negative predictor correlations; all predictors are statistically significant, with the exception of investment source. Positive predictive correlations exist between investor category, financial literacy degree, investment duration, emotional tolerance level, risk consideration, investment monitoring activities, internal sentiment and correct investment selection. Except for risk consideration and investment monitoring activities, all components have statistically significant predictions. The quantity of capital invested in the stock market is heavily influenced by the investment duration, preferred share price ranges, investor type, emotional toleration level and decision-making accuracy level.

Research limitations/implications

This investigation was conducted exclusively with Bangladeshi individual stockholders. Therefore, the existing study can be extended to institutional investors and conceivably to other divisions. It is possible to conduct this similar study internationally. And the query can enlarge with more sample size and use a more sophisticated econometric model. Despite that the outcomes of this study help the regulatory authorities to arrange more informative seminars and consciousness programs.

Practical implications

The conclusions have practical implications since they empower investors to modify their portfolios based on elements including share price ranges, investment horizons and emotional stability. To improve chances of success and reach financial objectives, they stress the significance of bettering financial understanding, active monitoring and risk analysis. Results can also be enhanced by distributing ownership over a number of market sectors and price points. The results highlight the value of patience and giving potential returns enough time.

Originality/value

This study on the trading behavior of investors in Bangladesh is unique and based on field study, and the findings of this study will deliver information to the stakeholders of the capital market regarding the investors’ trading behavior belonging to different categories, financial literacy level, investment duration, emotional tolerance level and internal feeling.

Details

LBS Journal of Management & Research, vol. 21 no. 2
Type: Research Article
ISSN: 0972-8031

Keywords

Open Access
Article
Publication date: 4 August 2023

Marco Gatti and Simone Poli

This paper explores the role that the control system – understood as a set of financial and non-financial mechanisms – introduced by the Ministerial Decree of 15th February 1860…

Abstract

Purpose

This paper explores the role that the control system – understood as a set of financial and non-financial mechanisms – introduced by the Ministerial Decree of 15th February 1860 played in promoting the ethical tolerance of prostitution in the Kingdom of Italy.

Design/methodology/approach

A qualitative research method was adopted. Specifically, this study draws on literature on accounting and deviant behaviors and on Suchman's theories of legitimation (1995) to interpret empirical evidence collected from archival primary sources as well as secondary sources.

Findings

The paper highlights how the accounting mechanisms introduced by the law were molded to limit the serious consequences of prostitution from a public health standpoint and to demonstrate that the State neither profited from prostitution nor used public money to fund it. This should have stimulated ethical tolerance of the law itself and, consequently, of the prostitution that was regulated.

Originality/value

This paper opens a new research avenue in the field of accounting history by exploring the connection between accounting and prostitution. Moreover, unlike the extant literature on accounting and deviant behaviors, this study delves into the role played by accounting mechanisms to promote ethical tolerance rather than to activate normalization processes.

Details

Accounting, Auditing & Accountability Journal, vol. 36 no. 9
Type: Research Article
ISSN: 0951-3574

Keywords

Open Access
Article
Publication date: 2 June 2020

Andrea Lippi and Simone Rossi

This paper sets out to corroborate the existing literature on investors' risk tolerance and to assess how the 2008 financial crisis has affected risk tolerance among Italian…

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Abstract

Purpose

This paper sets out to corroborate the existing literature on investors' risk tolerance and to assess how the 2008 financial crisis has affected risk tolerance among Italian investors.

Design/methodology/approach

Based on a unique dataset of real-world portfolio choices made by 1,245 Italian investors over a period of 15 years (from 2003 to 2017), this paper presents two steps of analysis. In step 1, the whole period 2003–2017 is considered with the aim to integrate and corroborate the existing literature on the topic of risk tolerance, considering a complete economic and financial cycle. Step 2 took 2008 as the pivotal point between pre-crisis (2003–2008) and crisis (2009–2017) with the aim to observe the influence on risk appetite of the economic and financial effects of the crisis.

Findings

The results obtained confirm that men are more risk tolerant than women and older people are less risk-taking than their younger counterparts, although the relationship between age and risk tolerance is not necessarily linear. Moreover, our paper demonstrates that a crisis scenario has an influence on Italian investors' risk tolerance.

Practical implications

Our results are of interest to financial advisors, financial planners, asset managers, psychologists, behavioral researchers and more in general to providers of financial products and services.

Originality/value

The results presented in this paper are relevant and original because they are based on real investors who made real choices concerning their portfolio asset allocations.

Details

International Journal of Bank Marketing, vol. 38 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

Open Access
Article
Publication date: 8 August 2018

Liliana Rybarska-Rusinek, Ewa Rejwer and Alexander Linkov

At present numerical simulation of seismicity, used in mining and hydraulic fracturing practice, is quite time expensive what hampers its combined employing with observed…

Abstract

Purpose

At present numerical simulation of seismicity, used in mining and hydraulic fracturing practice, is quite time expensive what hampers its combined employing with observed seismicity in real time. The purpose of this paper is to suggest a mean for drastic speeding up numerical modeling seismic and aseismic events.

Design/methodology/approach

The authors propose the means to radically decrease the time expense for the bottleneck stage of simulation: calculations of stresses, induced by a large group of already activated flaws (sources of events), at locations of flaws of another large group, which may be activated by the stresses. This is achieved by building a hierarchical tree and properly accounting for the sizes of activated flaws, excluding check of their influence on flaws, which are beyond strictly defined near-regions of strong interaction.

Findings

Comparative simulations of seismicity by conventional and improved methods demonstrate high efficiency of the means developed. When applied to practical mining and hydrofracturing problems, it requires some two orders less time to obtain practically the same output results as those of conventional methods.

Originality/value

The proposed improvement provides a means for simulation of seismicity in real time of mining steps and hydrofracture propagation. It can be also used in other applications involving seismic and aseismic events and acoustic emission.

Details

Engineering Computations, vol. 35 no. 5
Type: Research Article
ISSN: 0264-4401

Keywords

Open Access
Article
Publication date: 20 June 2022

Rangapriya Saivasan and Madhavi Lokhande

Investor risk perception is a personalized judgement on the uncertainty of returns pertaining to a financial instrument. This study identifies key psychological and demographic…

7565

Abstract

Purpose

Investor risk perception is a personalized judgement on the uncertainty of returns pertaining to a financial instrument. This study identifies key psychological and demographic factors that influence risk perception. It also unravels the complex relationship between demographic attributes and investor's risk attitude towards equity investment.

Design/methodology/approach

Exploratory factor analysis is used to identify factors that define investor risk perception. Multiple regression is used to assess the relationship between demographic traits and factor groups. Kruskal–Wallis test is used to ascertain whether the factors extracted differ across demographic categories. A risk perception framework based on these findings is developed to provide deeper insight.

Findings

There is evidence of the relationship and influence of demographic factors on risk propensity and behavioural bias. From this study, it is apparent that return expectation, time horizon and loss aversion, which define the risk propensity construct, vary significantly based on demographic traits. Familiarity, overconfidence, anchoring and experiential biases which define the behavioural bias construct differ across demographic categories. These factors influence the risk perception of an individual with respect to equity investments.

Research limitations/implications

The reference for the framework of this study is limited as there has been no precedence of similar work in academia.

Practical implications

This paper establishes that information seekers make rational decisions. The paper iterates the need for portfolio managers to develop and align investment strategies after evaluation of investors' risk by including these behavioural factors, this can particularly be advantageous during extreme volatility in markets that concedes the possibility of irrational decision making.

Social implications

This study highlights that regulators need to acknowledge the investor's affective, cognitive and demographic impact on equity markets and align risk control measures that are conducive to market evolution. It also creates awareness among market participants that psychological factors and behavioural biases can have an impact on investment decisions.

Originality/value

This is the only study that looks at a three-dimensional perspective of the investor risk perception framework. The study presents the relationship between risk propensity, behavioural bias and demographic factors in the backdrop of “information” being the mediating variable. This paper covers five characteristics of risk propensity and eight behavioural biases, such a vast coverage has not been attempted within the academic realm earlier with the aforesaid perspective.

Details

Asian Journal of Economics and Banking, vol. 6 no. 3
Type: Research Article
ISSN: 2615-9821

Keywords

Open Access
Article
Publication date: 9 June 2023

Marco Santorsola, Rocco Caferra and Andrea Morone

Expanding on the real-world financial market framework and considering the current market turmoil, with cryptocurrencies (where contracts for difference (CFDs) are extremely…

Abstract

Purpose

Expanding on the real-world financial market framework and considering the current market turmoil, with cryptocurrencies (where contracts for difference (CFDs) are extremely common) (Hasso et al., 2019) displaying unprecedented volatility, the authors aim to test in an online laboratory setting whether displaying a risk warning message is truly effective in reducing the level of risk taken and whether the placement of this method makes a difference.

Design/methodology/approach

To explore the impact of risk disclosure framing on risk-taking behavior, the authors conducted an online pair-wise lottery choice experiment. In addition to manipulating risk awareness through the presence or absence of risk warning messages of varying intensity, the authors also considered dynamic inconsistency, cognitive ability and questionnaire-based financial risk tolerance (FRT) scores. The authors aimed to identify potential relationships between these variables and experimentally elicited risk aversion. The authors' study offers valuable insights into the complex nature of risky decision-making and sheds light on the importance of considering dynamic inconsistency in addition to risk awareness and aversion.

Findings

The authors' results provide statistical evidence for the efficacy of informative and very salient messages in mitigating risky decision, hinting at several policy implications. The authors also provide some statistical evidence in support of the relationship between cognitive abilities and risk preferences. The authors detect that individual with low cognitive abilities scores display great risk aversion.

Originality/value

This study investigates the impact of risk warning messages on investment decisions in an online laboratory setting – a unique approach. However, the authors go beyond this and also examine the potential influence of dynamic inconsistency on decision-making, adding further value to the literature on this topic. To ensure a comprehensive understanding of the participants, the authors collect data on cognitive ability and FRT using questionnaires. This study provides a simple and cost-effective framework that can be easily replicated in future research – a valuable contribution to the field.

Details

Journal of Economic Studies, vol. 51 no. 9
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 6 December 2022

Frank Crowley and Peter Barlow

The purpose of this paper is to examine the relationship between an individual's social capital context and entrepreneurship using a multi-level modelling framework.

3631

Abstract

Purpose

The purpose of this paper is to examine the relationship between an individual's social capital context and entrepreneurship using a multi-level modelling framework.

Design/methodology/approach

This paper uses data from 87,007 individual level observations across 428 regions in 37 countries. The data comes from the 2010 and 2016 Life in Transition Surveys. The paper uses a principal component analysis to identify the different dimensions of an individual's social capital context. Subsequently, a multi-level model is employed examining the relationship between the components of an individual's social capital context and entrepreneurship (which is proxied by an individual's attempt to set up a business), whilst controlling for both country and regional effects.

Findings

Greater levels of networking, informal connections and tolerance of others have a significant positive relationship with entrepreneurial activity. Trust of institutions and others have a negative relationship with entrepreneurial activity. Regional and country differences are also important for entrepreneurship, demonstrating the importance of the multi-level and social contextual environment for business development.

Originality/value

Firstly, the authors present a broad, but comprehensive social contextual framework incorporating many measures of social capital when examining the importance of social capital for business development. Secondly, the work provides interesting results on the “bright and dark sides of trust” for entrepreneurship, answering calls for improved understandings on the positive and negative relationships between social capital and entrepreneurial activity. Thirdly, the paper extends the burgeoning but limited number of studies that examine the multi-level contextual environment of entrepreneurial activities.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 9
Type: Research Article
ISSN: 1355-2554

Keywords

Open Access
Article
Publication date: 23 May 2023

Myungjoo Kang, Inwook Song and Seiwan Kim

This study aims to empirically analyze the asset allocation capabilities of Outsourced Chief Investment Officers (OCIOs) in Korea. The empirical analysis used data from 35 funds…

Abstract

This study aims to empirically analyze the asset allocation capabilities of Outsourced Chief Investment Officers (OCIOs) in Korea. The empirical analysis used data from 35 funds that were evaluated by the Ministry of Strategy and Finance from 2012 to 2020. The results of the analysis are summarized as follows. First, this study found that funds that adopted OCIO improved their asset allocation performance. Second, the sensitivity between risk-taking and performance decreased for funds that adopted OCIO. Third, it is found that OCIO adoption improves a fund's asset management execution (tactical capabilities). This study has methodological limitations in which the methodology used in this study is not based on theoretical prior research, but on practical applications. However, considering the need to clearly analyze the capabilities of OCIO and the timeliness of the topic, this study is valuable and can provide meaningful information to funders who are considering adopting OCIO in the future.

Details

Journal of Derivatives and Quantitative Studies: 선물연구, vol. 31 no. 2
Type: Research Article
ISSN: 1229-988X

Keywords

Open Access
Article
Publication date: 14 June 2019

Elfadil Mohamed Elbashier, Elfadil Mohammed Eltayeb Elbashier, Siddig Esa Idris2, Wuletaw Tadesse, Izzat S.A. Tahir, Abu Elhassan S. Ibrahim, Ashraf M.A. Elhashimi, Sefyan I. Saad, Amani Ahmed Idris and Hala Mohamed Mustfa

The purpose of this paper was to study the genetic variability, heritability, heat tolerance indices and phenotypic and genotypic correlation studies for traits of 250 elite…

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Abstract

Purpose

The purpose of this paper was to study the genetic variability, heritability, heat tolerance indices and phenotypic and genotypic correlation studies for traits of 250 elite International Center for Agricultural Research in the Dry Areas (ICARDA) bread wheat genotypes under high temperature in Wad Medani, Center in Sudan.

Design/methodology/approach

Bread wheat is an important food on a global level and is used in the form of different products. High temperature associated with climate change is considered to be a detrimental stress in the future on world wheat production. A total of 10,250 bread wheat genotypes selected from different advanced yield trials introduction from ICARDA and three checks including were grown in two sowing dates (SODs) (1st and 2nd) 1st SOD heat stress and 2nd SOD non-stress at the Gezira Research Farm, of the Agricultural Research Corporation, Wad Medani, Sudan.

Findings

An alpha lattice design with two replications was used to assess the presence of phenotypic and genotypic variations of different traits, indices for heat stress and heat tolerance for 20 top genotypes and phenotypic and genotypic correlations. Analysis of variance revealed significant differences among genotypes for all the characters. A wide range, 944-4,016 kg/ha in the first SOD and 1,192-5,120 kg/ha in the second SOD, was found in grain yield. The average yield on the first SOD is less than that of the secondnd SOD by 717.7 kg/ha, as the maximum and minimum temperatures were reduced by 3ºC each in the second SOD when compared to the first SOD of the critical stage of crop growth shown.

Research limitations/implications

Similar wide ranges were found in all morpho-physiological traits studied. High heritability in a broad sense was estimated for days to heading and maturity. Moderate heritability estimates found for grain yield ranged from 44 to 63.6 per cent, biomass ranged from 37.8 to 49.1 per cent and canopy temperature (CT) after heading ranged from 44.2 to 48 per cent for the first and secondnd SODs. The top 20 genotypes are better than the better check in the two sowing dates and seven genotypes (248, 139, 143, 27, 67, 192 and 152) were produced high grain yield under both 1st SOD and 2nd SOD.

Practical implications

The same genotypes in addition to Imam (check) showed smaller tolerance (TOL) values, indicating that these genotypes had a smaller yield reduction under heat-stressed conditions and that they showed a higher heat stress susceptibility index (SSI). A smaller TOL and a higher SSI are favored. Both phenotypic and genotypic correlations of grain yield were positively and significantly correlated with biomass, harvest index, number of spikes/m2, number of seeds/spike and days to heading and maturity in both SODs and negatively and significantly correlated with canopy temperature before and after heading in both SODs.

Originality/value

Genetic variations, heritability, heat tolerance indices and correlation studies for traits of bread wheat genotypes under high temperature

Details

International Journal of Climate Change Strategies and Management, vol. 11 no. 5
Type: Research Article
ISSN: 1756-8692

Keywords

Open Access
Article
Publication date: 12 July 2022

Mohammad Farajnezhad

The purpose of this study is to analyze commercial bank-level data to examine a credit channel of the monetary policy transmission mechanism in emerging economies, such as South…

1203

Abstract

Purpose

The purpose of this study is to analyze commercial bank-level data to examine a credit channel of the monetary policy transmission mechanism in emerging economies, such as South Africa from BRICS countries. Among the important questions that central banks, economists and policymakers have raised in this area are: Do bank characteristics and macroeconomic variables influence credit supply in South Africa? Do bank characteristics and macroeconomic variables interact to influence credit supply in South Africa?

Design/methodology/approach

Static panel data with pooled OLS, a random effect model and the fixed-effect model are used for data analysis. Using a sample of 50 commercial banks from South Africa over 10 years from 2009 to 2018. The statistical software Stata is utilized for data analysis.

Findings

The conclusion of this study shows that in South Africa, the loan amount has a strong and positive macroeconomic variable inflation effect. The outcomes of the study also revealed that in South Africa, there is a strong but negative association between interaction macroeconomic variables inflation and bank characteristic liquidity ratio on the loan amount.

Originality/value

The authors contribute to the existing literature by identifying the key determinants of monetary policy transmission channels through credit in South Africa and, furthermore, through a country-level data analysis and disaggregation at the commercial bank level, as well as economic conditions.

Details

Journal of Money and Business, vol. 2 no. 2
Type: Research Article
ISSN: 2634-2596

Keywords

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