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1 – 10 of over 65000Dimitrios Kourtidis, Prodromos Chatzoglou and Zeljko Sevic
The purpose of this paper is to examine whether, and to what extent, specific personality traits drive investors’ trading behaviour.
Abstract
Purpose
The purpose of this paper is to examine whether, and to what extent, specific personality traits drive investors’ trading behaviour.
Design/methodology/approach
This study investigates these assumptions in an innovative way by employing an integrated model and using structural equation modelling analysis to examine them simultaneously as they would occur in the complex real world environment.
Findings
The results provide strong evidence that these personality traits influence investors’ trading behaviour and stock trading performance. The most powerful relationships are found to be those between over-confidence and stock trading volume, frequency and performance.
Originality/value
To the best of the authors’ knowledge there is no any similar study. This paper is the authors’ original unpublished work and it has not been submitted to any other journal for reviews.
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Simon Kloker, Frederik Klatt, Jan Höffer and Christof Weinhardt
The selection of experts for Delphi studies is crucial for the quality of the forecast results and the information taken into account. In the past, this has usually been done by…
Abstract
Purpose
The selection of experts for Delphi studies is crucial for the quality of the forecast results and the information taken into account. In the past, this has usually been done by selecting participants according to their reputation, although this approach is questionable in terms of reaching the most knowledgeable participants having new, relevant and valid information. In this context, this paper aims to propose to operate a prediction market alongside Delphi studies and select participants based on their trading behaviour in the market for the Delphi study.
Design/methodology/approach
Based on more than three years of historical prediction market trading data, the authors verify attributes that indicate insightful trades, as previously discussed in the finance literature, by using regression and classification trees.
Findings
The paper contributes attributes of trading behaviour that are theoretically derived from literature and potentially related to informed traders. These are tested and evaluated on historical prediction market data. Especially, the trading volume, the spread at the moment of trading and the market maker attribute seem to predict informed traders the best.
Originality/value
Algorithms based on identified attributes can be used to objectify the selection of experts for Delphi studies with potential gains in terms of the amount of information considered.
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Sanshao Peng, Catherine Prentice, Syed Shams and Tapan Sarker
Given the cryptocurrency market boom in recent years, this study aims to identify the factors influencing cryptocurrency pricing and the major gaps for future research.
Abstract
Purpose
Given the cryptocurrency market boom in recent years, this study aims to identify the factors influencing cryptocurrency pricing and the major gaps for future research.
Design/methodology/approach
A systematic literature review was undertaken. Three databases, Scopus, Web of Science and EBSCOhost, were used for this review. The final analysis comprised 88 articles that met the eligibility criteria.
Findings
The influential factors were identified and categorized as supply and demand, technology, economics, market volatility, investors’ attributes and social media. This review provides a comprehensive and consolidated view of cryptocurrency pricing and maps the significant influential factors.
Originality/value
This paper is the first to systematically and comprehensively review the relevant literature on cryptocurrency to identify the factors of pricing fluctuation. This research contributes to cryptocurrency research as well as to consumer behaviors and marketing discipline in broad.
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This paper analyzes the impact of macroeconomic variables such as real exchange rate, exchange-rate volatility, and economic growth of the UK and Norway on Norway’s bilateral…
Abstract
This paper analyzes the impact of macroeconomic variables such as real exchange rate, exchange-rate volatility, and economic growth of the UK and Norway on Norway’s bilateral trade flow to the UK via maritime and other transport modes. The first two models considered trade volume (import and export) via only maritime transport, while the third and fourth models considered trade volume via modes other than maritime transport. The empirical validity of the Marshall-Lerner condition is tested to see whether a devaluation of the real exchange rate improves the trade balance in the long term. In addition to the long-term relationship among variables, short-term effects are also evaluated. The results show that the real income of Norway and its trading partner (the UK) is the main determinant of bilateral trade flow via maritime and other transport modes. Moreover, the results indicate that in the long run, the Marshall-Lerner condition is satisfied only for bilateral trade via modes other than maritime transport.
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This paper aims to examine the time-varying preferences for environment, social and corporate governance (ESG) investing in an emerging market. The investors seek ESG-conscious…
Abstract
This paper aims to examine the time-varying preferences for environment, social and corporate governance (ESG) investing in an emerging market. The investors seek ESG-conscious investments during a positive economic outlook, reflecting the time-varying nature of ESG demand. Specifically, the author shows that high-ESG stocks have negative abnormal returns during bad economic times but turn into positive abnormal returns in good economic times. The author also suggests that the alpha spread between high-ESG and low-ESG stocks is larger in good economic times than in bad times. Furthermore, individual investors prefer high ESG scoring stocks in good economic times. The author highlights that this ESG premium is shaped by economic projection and the households' financial wealth.
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Mohsen Bahmani, Hanafiah Harvey and Scott W. Hegerty
The Marshall‐Lerner (M‐L) condition, which stipulates that a devaluation or depreciation of its currency will improve a country's trade balance only if the sum of the absolute…
Abstract
Purpose
The Marshall‐Lerner (M‐L) condition, which stipulates that a devaluation or depreciation of its currency will improve a country's trade balance only if the sum of the absolute values of a country's import and export price elasticities are greater than one, is a fundamental tenet of international economics. The purpose of this study is to survey the literature that has tested the M‐L condition, examining in particular whether previous studies' results are statistically significant. The authors then conduct their own estimation of 29 countries' trade elasticities, over the past few decades.
Design/methodology/approach
While mostly a review paper, the paper also applies statistical techniques in two ways. First, the authors use t‐tests on previously‐published statistical results to see if the sums of their elasticities are significantly greater than one. The authors also apply the recently developed ARDL cointegration method, which has a number of attractive statistical properties, to estimate 29 countries' long‐run import and export elasticities and test the M‐L condition using recent data.
Findings
The authors re‐estimation using previous studies' coefficients and standard errors shows that, although the point estimates in many studies suggest that the M‐L condition is met, it really is not met in half of the cases. This lack of evidence is confirmed with the authors' own empirical tests.
Research limitations/implications
Not only does this paper collect the relevant literature in a way that will assist future researchers on the topic, these findings suggest that support for the M‐L condition is much weaker that commonly thought. This therefore makes an important contribution to thinking regarding the potential benefits of devaluation, and to economic theory in general.
Practical implications
Policymakers who hope to improve their countries' competitive position could benefit from learning that this policy is indeed less effective than might be supposed. This could lead to the implementation of more effective economic policies.
Originality/value
As a literature review, the originality of this paper is that it collects relevant studies into one single paper. The statistical analyses allow the reader to re‐interpret these studies' findings in a new light.
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Gordon Wills, Sherril H. Kennedy, John Cheese and Angela Rushton
To achieve a full understanding of the role ofmarketing from plan to profit requires a knowledgeof the basic building blocks. This textbookintroduces the key concepts in the art…
Abstract
To achieve a full understanding of the role of marketing from plan to profit requires a knowledge of the basic building blocks. This textbook introduces the key concepts in the art or science of marketing to practising managers. Understanding your customers and consumers, the 4 Ps (Product, Place, Price and Promotion) provides the basic tools for effective marketing. Deploying your resources and informing your managerial decision making is dealt with in Unit VII introducing marketing intelligence, competition, budgeting and organisational issues. The logical conclusion of this effort is achieving sales and the particular techniques involved are explored in the final section.
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Muhammad Zubair Tauni, Muhammad Ansar Majeed, Sultan Sikandar Mirza, Salman Yousaf and Khalil Jebran
The purpose of this paper is to investigate the role of financial advice on investor trading behavior by analyzing the influence of advisor personality.
Abstract
Purpose
The purpose of this paper is to investigate the role of financial advice on investor trading behavior by analyzing the influence of advisor personality.
Design/methodology/approach
The study utilized the Big Five personality framework from Costa and McCrae (1992) to measure personality traits of advisors and examined the data collected from 314 stock investor–advisor dyads. Personality traits of advisors were measured by the NEO-Five Factor Inventory (Costa and McCrae, 1989). Confirmatory factor analysis was conducted to assess the fitness of the Big Five model. We followed two-stage least square method for estimating endogenous covariate by employing instrumental variable analysis. Probit model was used to evaluate the moderating influence of advisor personality traits on the association between the usage of financial advice and trading behavior.
Findings
The authors found that financial advice positively impacts investors’ stock trading frequency. The authors also provide empirical evidence that financial advice is more likely to increase trading frequency when advisor personality tends to be openness, conscientiousness and agreeableness. On the other hand, information acquired from financial advisors causes fewer adjustments in investors’ portfolios when the personality of advisors is likely to be extraverted and neurotic.
Research limitations/implications
The theoretical model in our study seeks to explain that a psychological factor, namely, advisor personality, influences the way an investor interprets information signals from financial advice, which, in turn, influences the investor’s decision to trade in securities.
Practical implications
This research suggests that characteristics of advisors other than those of investors can be of relevance for policy makers in their attempts to improve their business in the financial services industry.
Originality/value
Survey-based studies in finance are lacking. This study adds to the existing literature of behavioral finance that accounts for the observed variations in investors’ financial decision making explained by psychological factors. No previous study has been conducted so far exploring variations in the impact of financial advice on investors’ stock trading behavior by the Big Five advisor personality, and this paper strives to fill this research gap in Chinese stock market.
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This paper examines the Random Walk Hypothesis (RWH) for aggregate New Zealand share market returns, as well as the CRSP NYSE‐AMEX (USA) index during the 1980‐2001 period. Using…
Abstract
This paper examines the Random Walk Hypothesis (RWH) for aggregate New Zealand share market returns, as well as the CRSP NYSE‐AMEX (USA) index during the 1980‐2001 period. Using several indices, we rely on the variance‐ratio test and find evidence to support the rejection of the RWH with some evidence of a momentum effect. However, we find evidence to suggest the behaviour of share prices to be time‐dependent in New Zealand. For example, we find the indices tested were closer to random after the 1987 share market crash. Further analysis showed even stronger results for periods subsequent to the passage of the Companies Act 1993 and the Financial Reporting Act 1993. We also find evidence that indices based on large capitalisation stocks are more likely to follow a random walk compared to those based on smaller stocks. For the USA index, we find stronger evidence of random behaviour in our sample period compared to the earlier period examined by Lo and Mackinlay (1988)
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Muhammad Zubair Tauni, Zia-ur-Rehman Rao, Hongxing Fang, Sultan Sikandar Mirza, Zulfiqar Ali Memon and Khalil Jebran
The purpose of this paper is to investigate the impact of the frequency of information acquisition on the frequency of stock trading. The authors also examined if the Big Five…
Abstract
Purpose
The purpose of this paper is to investigate the impact of the frequency of information acquisition on the frequency of stock trading. The authors also examined if the Big Five personality traits of investor influence the association between information acquisition and stock trading behavior.
Design/methodology/approach
The authors adopted NEO Five-Factor Inventory (Costa and McCrae, 1989) inventory to measure the Big Five personality traits of investors and examined the data collected from 541 individual investors of the Chinese stock market. To overcome the potential endogeneity bias, the authors followed two-stage least square method for estimating endogenous covariate by employing instrumental variable analysis. The authors performed probit regression to evaluate the moderating influence of investor personality traits on the association between information acquisition and stock trading behavior. The authors also performed several other tests to check the robustness of the key findings.
Findings
This research confirmed the previous findings that the more frequently investors acquire information, the more often they trade in stocks. Moreover, the authors added to the existing literature by providing empirical evidence that the Big Five personality traits moderate the relationship of information acquisition with stock trading behavior. Information acquisition tends to increase stock trading frequency in investors with conscientiousness, extraversion and agreeableness traits. On the other hand, it also has the tendency to decrease the intensity of stock trading in investors with openness and neuroticism traits.
Research limitations/implications
The theoretical model in this study seeks to explain that the psychological factor, namely, investor personality, influences the way an investor interprets signals from information which in turn influences the investor decision to trade in securities. This research suggests that psychological characteristics of investors can be of relevance for policy makers in their attempts to improve their business in the financial services industry.
Originality/value
This study combines both information search literature and behavioral finance literature to investigate whether or not the information acquisition that relates to investors’ asset allocation decisions is influenced by investor personality. The study offers new theoretical insights into investors’ behavior due to the characteristics of the Chinese stock market which are uniquely different from other stock markets in the world. No previous study has been conducted so far in the Chinese stock market to explore variations in the impact of investors’ information acquisition on their stock trading by the Big Five personality and this paper strives to fill this research gap.
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