scholarly journals Designing a model for the acceptance of electronic stock exchange by individual investors

2011 ◽  
Vol 3 ◽  
pp. 1164-1169 ◽  
Author(s):  
Saeed Fathi ◽  
Ali Shaemi Barzoki ◽  
Elmira Makinian ◽  
Hassan Ghorbani ◽  
Sharif Shekarchizadeh Esfahani
Keyword(s):  
Stock Exchange ◽  
Individual Investors

scholarly journals An Evaluation of Relationship between Risk, Return and Social Structure and their Impact on Individual Investor’s Behaviour at Pakistan Stock Exchange

2019 ◽  
Vol 15 (1) ◽  
pp. 184-192
Author(s):  
Sumair Farooq ◽  
Keyword(s):  
Social Structure ◽  
Stock Exchange ◽  
Research Paper ◽  
Individual Investors ◽  
Probability Method ◽  
Risk And Return ◽  
Secondary Sources ◽  
Risk Return ◽  
Investor Behaviour

This research paper focusing on twofold purposes: where the first part focuses on providing positive evidence on the nature of relationship between risk and return. Moreover, the second part of the paper deals with analyzing the role of risk and return and social structures on the investor’s behaviour in specific consideration with Pakistan Stock Exchange (PSX) (formerly Karachi Stock Exchange; KSE). This research paper has employed a quantitative approach for the purpose of collection of data and analysis of the results in order to fulfil the aim and objectives of the study. The data for risk and return has been collected from secondary sources. The risk and return for 50 companies that are listed on Pakistan Stock Exchange and at least once paid dividend have been calculated for 11 years which is from 2007 to 2017. Moreover, in order to collect the data for social structure and investor  behaviour  the  researcher  has  used  survey  questionnaire  as  the  research  instrument.  The  questionnaire was filled by 558 individual investors who have invested their capital in the stock of companies listed on Pakistan Stock Exchange. The sampling method that was used for the purpose of selecting respondents for getting the questionnaires filled was non-probability method. For all the independent variables the null hypotheses are rejected thus showing significance of relationship. The results from  the  regression  analysis  has  shown  that  among  all  the  predicting  variables  social  structure explains the lowest amount of variation in investor’s behaviour. Thus, overall it can be said that the results of this study are in alignment with the previous researches.

Survey of Trading Systems for Individual Investors

2011 ◽  
pp. 157-176 ◽  
Author(s):  
M. Kersch ◽  
G. Schmidt
Keyword(s):  
Financial Markets ◽  
Stock Exchange ◽  
Point Of View ◽  
Individual Investors ◽  
Individual Investor ◽  
Trading System ◽  
Trading Systems ◽  
Trading Decisions ◽  
The Individual

Trading decisions in financial markets can be supported by the use of trading algorithms. To evaluate trading algorithms and to generate orders to be executed on the stock exchange trading systems are used. In this chapter, we define the individual investors’ requirements on a trading system, and analyze 17 trading systems from an individual investor’s point of view. The results of our study point out that the best alternative for an individual investor is not one single trading system, but a combination of two different classes of trading systems.

Stock Characteristics and Individual Herding

2020 ◽  
Vol 9 (4) ◽  
pp. 58-73
Author(s):  
Tze Sun Wong
Keyword(s):  
Stock Exchange ◽  
Target Population ◽  
Individual Investors ◽  
Market Capitalization ◽  
Independent Variables ◽  
Taiwan Stock Exchange ◽  
Excess Volatility ◽  
Log Odds ◽  
Industry Affiliation ◽  
The Individual

Individuals who invest stocks in a market with excess volatility generally end up selling or holding the stocks at losses. The purpose of this study was to examine individual herding as it related to three comprehensible stock characteristics, market capitalization, price-to-book ratio, and industry affiliation. The target population was the individual investors who traded in Taiwan Stock Exchange in 2016. Data were collected through subscription. Based on Lakonishok, Shleifer, and Vishny's measure, individual herding was significant. The three stock characteristics were separately and as a whole related to individual herding. The findings confirmed sell-herding higher than buy-herding, more serious herding in high market capitalization stocks, and broad industry herding. The findings also extended knowledge to comparable herding levels with 8 to 10 years ago, more linearity between log market capitalization and log odds of herd occurrence, and less herding in P/B ratio stocks with other independent variables controlled.

scholarly journals An Analysis of Behavioral Biases in Investment Decision-Making

2019 ◽  
Vol 10 (4) ◽  
pp. 55 ◽  
Author(s):  
Geetika Madaan ◽  
Sanjeet Singh
Keyword(s):  
Decision Making ◽  
Positive Impact ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Individual Investors ◽  
Behavioral Biases ◽  
Investment Decision Making ◽  
Survey Responses ◽  
The Impact

Individual investor’s behavior is extensively influenced by various biases that highlighted in the growing discipline of behavior finance. Therefore, this study is also one of another effort to assess the impact of behavioral biases in investment decision-making in National Stock Exchange. A questionnaire is designed and through survey responses collected from 243 investors. The present research has applied inferential statistics and descriptive statistics. In the existing study, four behavioral biases have been reviewed namely, overconfidence, anchoring, disposition effect and herding behavior. The results show that overconfidence and herding bias have significant positive impact on investment decision. Overall results conclude that individual investors have limited knowledge and more prone towards making psychological errors. The findings of the study also indicate the existence of these four behavioral biases on individual investment decisions. This study will be helpful to financial intermediaries to advice their clients. Further, study can be elaborated to study other behavioral biases on investment decisions.

scholarly journals The Influence of Behavioural Finance Factors and the Moderating Effects of Contextual and Demographic Factors on Individual Investor’s Investment Performance

2020 ◽  
Vol 9 (3) ◽  
pp. 101
Author(s):  
Tuan Hamidon ◽  
Sampath Kehelwalatenna
Keyword(s):  
Stock Exchange ◽  
Investment Decision ◽  
Individual Investors ◽  
Investment Performance ◽  
Behavioural Finance ◽  
Investment Decision Making ◽  
Study Results ◽  
Aggregate Effect ◽  
Market Factors ◽  
The Relationship

Individual investors trading at the Colombo Stock Exchange (CSE), Sri Lanka, behave irrationally despite objective finance models available for them to refer in making rational decisions. Therefore this paper examines the irrationality by testing whether behavioural finance factors (BF), stock broker’s recommendations (SBR) as a contextual factor, and individual investor’s existing knowledge of the stock market (EK) as a demographic factor affect individual investor’s investment performance (IP). Heuristic behaviour, prospect behaviour and market factors were conceptualised as independent variables of the study whereas SBR and EK act as moderators on the relationship between BF and IP. Data of 221 individual investors of CSE during first half of 2019 were analyzed using structural models to draw empirical evidence to test hypotheses of the study. Results of the study reveal that market information and past stock trends as market factors have a significant bearing on investment decision making, which ultimately affect IP, while the aggregate effect of BF upholds a significant impact on IP. The results expose some novel findings such as: investors receive inferior financial returns when imitating other investors’ trading behaviour whilst trading on SBR; receive lower returns once trading on market factors whilst resuming SBR; and receive mediocre returns when EK is affirmative whilst following other investors’ decisions; and suffer losses when trading on market factors whilst exploiting EK. The findings imply that the stock brokers should not merely consider the output of objective finance models, but market wide herding, market manipulations, market factors and EK in investment recommendations.

A CLOSER LOOK AT THE CHARACTERISTICS OF STOCK HOLDINGS OF FOREIGN AND LOCAL INVESTORS IN THE INDONESIAN STOCK EXCHANGE (IDX)

2013 ◽  
Vol 08 (01) ◽  
pp. 1350002 ◽  
Author(s):  
JOSEPHINE SUDIMAN ◽  
DAVID ALLEN ◽  
ROBERT POWELL
Keyword(s):  
Institutional Investors ◽  
Stock Exchange ◽  
Individual Investors ◽  
Foreign Investors ◽  
Market Capitalization ◽  
Price Levels

This study provides an overview of the characteristics of stockholdings of foreign and local investors in terms of firm sizes, price levels and liquidity. There are four key findings. First, the IDX is a highly concentrated market and foreign investors dominate the ownership of high market capitalization stocks. Second, foreign investors trade less frequently than domestic counterparts. Third, small, illiquid lower priced stocks dominate this market with domestic individual investors holding most of the stocks with these characteristics. Finally, the paper profits of foreign institutional and domestic individual investors are found to be higher than those of domestic institutional investors.

scholarly journals The Impact of the Application of International Accounting Standard 34 (IAS 34) on the Industrial Public Shareholding Companies’ Sector in Jordan

2019 ◽  
Vol 5 (4) ◽  
pp. p404
Author(s):  
Maen Yousef Khalaf Hijazin ◽  
Dr. Saeed Mikhled Ahmad Al-naimat
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Simple Random Sample ◽  
Individual Investors ◽  
Financial Reports ◽  
Industrial Companies ◽  
Occupational Characteristics ◽  
Study Population ◽  
The Impact

This study aims at identifying the extent to which IAS 34 (Interim financial reporting) is applied in the Jordanian public shareholding companies, along with highlighting the impact of its application on individual investors at these companies. Study population consists of all Jordanian public shareholding industrial companies (45 companies) listed at Amman Stock Exchange. Due to the large number of the study population, preparers of financial statements (employees of companies), and individual investors, we have selected a simple random sample. The total number of preparers of financial statements (employees), and individual investors were (500) individuals who were selected for the sample. The results showed that all companies are committed to issue and publish interim financial reports within the period specified for that purpose. There is a statistically significant relationship between the variables relevant to the company including (the firm's nature, profitability, and age) and the compliance with issuing the reports and the information content of the financial statements. Moreover there are statistically significant differences in the extent to which IAS 34 is applied in the Jordanian public shareholding companies. These differences arise due to the personal and occupational characteristics of the preparers of financial statements (gender, age, qualification, position, and experience).

scholarly journals Impact of Behavioral Factors in Making Investment Decisions and Performance: Study on Investors of National Stock Exchange

2019 ◽  
Vol 11 (8) ◽  
pp. 80
Author(s):  
Sarika Keswani ◽  
Vippa Dhingra ◽  
Bharti Wadhwa
Keyword(s):  
Decision Making ◽  
Stock Exchange ◽  
Investment Decision ◽  
Individual Investors ◽  
Behavioral Factors ◽  
Performance Study ◽  
Investment Performance ◽  
Factors Affecting ◽  
Cronbach Alpha ◽  
The Impact

Market anomalies and irrational behavior caused investors changes in the stock market, and this has led to an investigation into the impact of various behavioral biases and factors affecting decision-making for individual investors. The purpose of this study was to find out the effect of the four factors, heuristic, prospect, market, herding on decisions of investors at NSE. Data are collected from the questionnaire on the basis of a likert scale. To determine the reliability of the questionnaire, the Cronbach alpha factor, which was 0.728, was used. EFA and multiple regression tests have been applied. Cronbach-alpha was used to check the interal consistency of the element. Cronbach alpha emphasized to each factor: Heuristic, Prospect, Market, Herding, Investment performance and Investors decisions that consistency at an acceptable level. The result of the analysis is that the four variables have greatly influenced the investment decision and return on investment. All behavioral variables have a significant impact on the decision-making process of investors, which led to the acceptance of all assumptions regarding the level of influence of behavioral factors in decision making for individual investors.

scholarly journals Study of Investment Decisions and Personal Characteristics through Risk Tolerance: Moderating Role of Investment Experience

2020 ◽  
Vol 9 (34) ◽  
pp. 57-68
Author(s):  
Nasira Perveen ◽  
Ashfaq Ahmad ◽  
Muhammad Usman ◽  
Faiza Liaqat
Keyword(s):  
Positive Impact ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Personal Characteristics ◽  
Risk Tolerance ◽  
Individual Investors ◽  
Financial Advisors ◽  
Investment Experience ◽  
The Relationship

Investment decisions could be affected by behavioral biases associated with personal characteristics. This study empirically investigates the effect of personal characteristics on investors’ investment decision through risk tolerance. Furthermore, investment experience moderates the nexus between personal characteristics and risk tolerance. The scale consisting of 24 items was used related to selected constructs and variables. Data was collected form 175 individual investors of Pakistan Stock Exchange. PLS-SEM was used to make statistical analysis. The findings indicate that extraversion has substantial positive impact on investment decisions. Moreover, risk tolerance partially mediates the relationship between extroversion and investment decisions. The relationship between introversion and investment decisions is negative and risk tolerance partially mediates the aforesaid relationship. Furthermore, it is statistically proved that investment experience substantially moderates the association between extraversion and risk tolerance. However, investment experience does not play any conditional role in the association between introversion and risk tolerance. This study can be helpful for financial advisors to provide best consultancy to their clients (investors), while considering their personal characteristics.

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