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This paper describes how financial professionals' behavioral biases influence their financial forecast and decision-making process. Most of the earlier studies are focused on well-developed financial markets, and little is researched about financial professionals, such as institutional investors, portfolio managers, investment advisors, financial analysts, etc., in emerging markets.

An expert-validated questionnaire measure four prominent behavioral biases and Indian financial professionals' rational decision-making process. The final sample consists of 274 valid responses using the purposive sampling technique. IBM SPSS and AMOS structural equation modeling (SEM) software are used to build measurement and structural models, multivariate analysis including regression, factor analysis, etc.

The results provide empirical insights into the relationship between behavioral biases and the decision-making process. The results suggest that the structural path model closely fits the sample data. The presence of behavioral biases indicates that financial professionals' forecasting and decision-making is not always rational but bounded rational or irrational due to these factors. Furthermore, these biases (except overconfidence bias) have a markedly significant and positive relationship with irrational decision-making.

It is critical to eradicate these psychological errors, but awareness and attentiveness toward behavioral biases may help financial professionals to make informed decisions. Investors can improve their portfolio decisions and investments by recognizing their judgment errors and focusing on specific investment strategies to mitigate the impact of these biases. It is necessary to incorporate behavioral insights while developing training techniques for financial professionals. Rules of thumb, visual tools, financial coaching and implementing social-cultural elements in training programs enable financial professionals to develop simple, engaging, appealing and customized approaches for their clients.

This novel study is the first of this kind of research that examines the relationship between financial professionals' behavioral biases and rational decision-making process. This study significantly and remarkably provides insights into irrationality in financial professionals' decision-making.

This study examines the relationship between investors' familiarity bias, including the home bias and endowment bias, and their financial situations, expectations and personal characteristics.

Using the 2019 Survey of Consumer Finances, the authors utilize an ordinary least squares regression to identify the presence of endowment bias and home bias in individual investors' direct stock holdings and use a Heckman selection model to examine determinants of the extent of endowment bias and home bias.

This study finds that investors with higher income and more education, men, non-white investors and people with greater risk tolerance are actually at a greater risk of endowment bias. This study also identifies a profile of investors that are more likely to have a home bias: with less financial sophistication, lower net worth, older, female, more risk-averse, with a positive expectation about the domestic economy and a relatively shorter investment horizon.

This paper is among the first to use US investors' directly reported stock holdings to examine the individual characteristics that are correlated with greater familiarity bias, providing financial professionals with information about how to allocate their limited time in providing education to a variety of clients.

This paper examines whether technological changes that promote communications between investors and managers help bridge the gap in the cost of equity capital among firms in different regions.

We use the online interaction platforms of listed firms in China and utilize brokerage presence (BP) to capture the geographic distribution of financial factors. We explore whether online interactions would reduce the cost of equity to a greater extent for firms located in low brokerage presence regions (hereafter “low-BP firms”) than those in high brokerage presence regions (hereafter “high-BP firms”).

We find low-BP firms benefit more from an improved information environment created by online interactions. We also find that posts about low-BP firms are more value-relevant and useful in processing corporate disclosures. Further, a higher number of interactions significantly enhances more informational efficiency for low-BP firms, and the effect of reducing the gap in financing costs is more pronounced when corporate information is complex.

We conclude that online interactions alleviate geography-induced information frictions and create a relatively level playing field for firms located in all regions.

Building on the intergroup relations perspective on the social identity theory, the authors examine whether firms' environmental, social and governance (ESG) varies when local firms have non-local CEOs. Additionally, the authors examine which contextual factors may strengthen or weaken the effectiveness of ESG in helping non-local CEOs garner trust, legitimacy and resources support from local stakeholders.

Pooled OLS regressions, based on unbalanced panel data and controlling for year and industry fixed effects, were estimated using a sample composed of 836 Chinese A-share listed firms that have Bloomberg ESG disclosure scores data from 2006 to 2019.

Results suggest that companies with non-local CEOs, who are perceived as outgroup members by the local stakeholders, would lead to a higher level of ESG performance to overcome the intergroup bias they face. In addition, results also show that companies with a lower level of previous ESG decoupling and having more slack will mitigate the relationship between non-local CEOs and ESG performance. Conversely, firm visibility at a high level will promote the positive relationship between non-local CEOs and ESG performance.

This study offers theoretical insights that extend the focus of intragroup relation to outgroup identity, by introducing an intergroup relations lens to explore how outgroup (or nonprototypical) leaders utilize ESG to counter intergroup bias they suffer. Moreover, this study also extends current literature focusing on non-local CEOs and ESG performance.

This paper aims to test the causal relationship between urban-biased policy and urban-rural income gap and further examine the moderating role of government intervention.

Based on the provincial Government Work Reports and the long-term policy practice of implementing the target responsibility system, the authors construct a unique indicator of urban-biased policy in China. Further, applying the panel data of 30 Chinese provinces in 2003–2018, the authors explore the causal relationship between urban-biased policy and urban-rural income gap.

The results show that urban-biased policy has contributed to the widen urban-rural income gap in China, which supports Lipton's urban-biased hypothesis. Further research shows that the stronger the government intervention, the bigger the role of urban-biased policy in widening urban-rural income gap.

On the one hand, this study not only investigates the direct effect of urban-biased policy on urban-rural income gap, but also examines the moderating effect from the perspective of government intervention, which helps to enrich the relevant studies of urban-biased theory. On the other hand, the authors' findings provide the latest empirical evidence for urban-biased policy to widen urban-rural income gap and presents a reference and warning for China and other developing countries about balancing the relationship between equity and efficiency during economic development.

The author examines the presence of foreign currency effects and the risk-mitigation channel through which a foreign-currency denomination reduces the loan spread.

The author runs regression analyses using loan data of firms incorporated in member countries of the Association of Southeast Asian Nations (ASEAN) from 2000 to 2020. The author also runs several robustness tests to address forward exchange rate bias, endogeneity concern and sample-selection bias.

Consistent with the currency matching motive of foreign debt use, the results show that a foreign currency denomination is associated with a lower spread and the relationship is amplified when there is a positive correlation between the changes in the return on assets and in the exchange rate.

This paper enriches existing studies on the use of foreign debt as an exchange rate risk management tool.

The results suggest that as firms utilize foreign debt and policymakers need to design banking regulations that not only oversee but also encourage the use of foreign debt as a hedging instrument to lower firms' borrowing costs.

This paper contributes to extant studies by examining the presence of foreign currency effects in emerging countries' loan markets and by exploiting the micro-level demand-side factors as the channel through which the currency denomination affects the loan spread.

Joon Y. Park is one of the pioneers in developing nonlinear cointegrating regression. Since his initial work with Phillips (Park & Phillips, 2001) in the area, the past two decades have witnessed a surge of interest in modeling nonlinear nonstationarity in macroeconomic and financial time series, including parametric, nonparametric and semiparametric specifications of such models. These developments have provided a framework of econometric estimation and inference for a wide class of nonlinear, nonstationary relationships. In honor of Joon Y. Park, this chapter contributes to this area by exploring nonparametric estimation of functional-coefficient cointegrating regression models where the structural equation errors are serially dependent and the regressor is endogenous. The self-normalized local kernel and local linear estimators are shown to be asymptotic normal and to be pivotal upon an estimation of co-variances. Our new results improve those of Cai et al. (2009) and open up inference by conventional nonparametric method to a wide class of potentially nonlinear cointegrated relations.

Financial professionals are increasingly important in the Indian financial system. Our study examines the association between the Big Five personality traits and Indian financial professionals' behavioral biases when making investment decisions.

After testing our questionnaire's reliability and validity, we used it to obtain the sample responses. We used multiple regression analysis and other statistical tools to identify the relationships between the Big Five personality traits and behavioral biases.

Our findings reveal a high level of extraversion and conscientiousness, a moderate level of agreeableness and openness and a low neuroticism level among financial professionals. The results show a significant association between neuroticism, extraversion, openness and all behavioral biases except anchoring bias. The neuroticism trait has a statistically significant relationship with all behavioral biases examined, whereas agreeableness and conscientiousness traits lack a significant association with behavioral biases. The openness trait is associated with many emotional biases and cognitive heuristics, while the extraversion trait has a significantly positive relationship with availability bias.

Future researchers could analyze primary (survey) and secondary investor data from brokerage houses. Using a larger sample could provide more generalizable findings. Researchers could also consider other aspects of investment decision-making using various asset classes. Understanding financial professionals' personality traits and behavioral biases could help them develop strategies to suit client needs.

This study provides the first comprehensive examination of the association between personality traits and behavioral biases of Indian financial professionals.

This study investigates the role of consumer cosmopolitanism on consumer attitudes and purchase intentions (PIs) towards foreign and local brands.

The responses were collected on a structured questionnaire through a consumer survey. The data were then analysed through structural equation modelling (SEM).

The results depict the positive influence of consumer cosmopolitanism on consumer attitudes towards foreign brands, which positively influences PIs towards foreign brands and negatively influences the PIs of local brands. Further, the mediating role of perceived quality was observed in explaining the consumer preference towards foreign and domestic brands.

Finally, the study concludes by providing implications for marketing scholars and managers of global and local brands.

The paper examines the underlying mechanisms related to consumer cosmopolitanism and its role in influencing the foreign and local brand purchase.

The purpose of this study is to analyze the challenges encountered by international nongovernmental organizations (INGOs) operating in armed conflicts within the Democratic Republic of the Congo (DRC) and the Central African Republic (CAR). Through a 20-month fieldwork analysis, this research maps logistical risks and highlights key obstacles on the ground for successful humanitarian deployments in dynamically changing and complex environments. The study brings together academics and practitioners, providing practical and concrete recommendations for nongovernmental organizations (NGOs) to focus on in the conflict zones studied.

Using a mixed-methods approach that combines qualitative and quantitative methods, this research provides valuable insights into the challenges faced by INGOs in conflict zones. After collecting data from the field, including interviews with key stakeholders and on-the-ground observations, the data analysis uses software tools such as Text Analysis Markup System analyzer and Macbeth. By adhering to ethical principles and incorporating a reflexive analysis, the study sheds light on the multidimensional nature of successful humanitarian deployments.

The primary risk in all armed conflict zones, including the DRC and CAR, is insecurity. However, to achieve a successful humanitarian deployment in such contexts, a multidimensional approach is required. This involves first securing the acceptance of local communities and conflict parties, which can be achieved through a deep understanding of both political and customary structures, with a focus on respecting key engagement leaders. Sustainability also plays a crucial role, and NGOs must maintain a secure stock of energy and provide greater initiative for on-the-ground managers to meet the expressed needs of beneficiary populations and involve them from the planning stage onwards. Finally, effective communication, cooperation and collaboration with United Nations Office for the Coordination of Humanitarian Affairs are essential to overcome procurement, technical and security risks, particularly during the initial deployment phases.

This study provides an illustration of the uncommon practice of conducting collaborative research in humanitarian settings amidst two neighboring areas of armed conflict. The authors identified 268 common risk factors across eight categories during five deployment phases. To analyze these risks based on criticality and NGO responsiveness, the authors used a multicriteria method. This approach allowed the authors to validate unanimous judgments, resulting in valuable insights and concrete recommendations.