scholarly journals Behavioural errors and stock market investment decisions: recent evidence from Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kashif Rashid ◽  
Yasir Bin Tariq ◽  
Mamoon Ur Rehman
Keyword(s):  
Stock Market ◽  
Trading Volume ◽  
Rational Expectation ◽  
Positive Impact ◽  
Investment Decisions ◽  
Negative Sign ◽  
Positive Sign ◽  
Positive Role ◽  
Content Type

PurposeThis study examines the role of behavioural factors, such as confidence, optimism, pessimism and rational expectation, in affecting investment decisions in the Pakistani stock market.Design/methodology/approachUsing daily trading data of KSE-100 index from January 2012 to December 2015, different regression models, including descriptive statistics and stationarity tests, are performed.FindingsResults indicate that stock market trading has suffered from pessimistic behaviour of investors. In the first model, the authors find a positive sign of confidence and negative sign of optimism with the trading volume. The second model shows a positive role of confidence and rational expectations in affecting the trading volume in daily, Monday and Friday samples. The results of the third model show a negative sign of both optimism and rational expectation with the trading volume. Furthermore, the next model shows a negative sign of confidence combined with pessimism while testing their relationship with the trading volume. Finally, results of the final model suggest that optimism negatively affects the trading volume, and on the other hand, pessimism has a positive impact on the trading volume.Research limitations/implicationsThe method and empirical testing of behavioural biases and their relationship with economic variable used in this study seem to be a promising way to better understand the role of psychology in deriving financial decisions for academics and policymakers.Originality/valueThis study uses secondary data for measuring behavioural biases and decomposes the effect between rational expectation and behavioural biases.

Managing technology transfer between coopetitive firms: the roles of coopetition, asset specificity and justice

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruijia Liu ◽  
Jianjun Yang ◽  
Feng Zhang
Keyword(s):  
Technology Transfer ◽  
Positive Impact ◽  
Exchange Process ◽  
Governance Mechanism ◽  
Governance Mechanisms ◽  
Informal Governance ◽  
Positive Role ◽  
Content Type ◽  
The Relationship

Purpose Prior studies have demonstrated the important role of coopetition in firms’ innovation. Based on the paradox perspective, this study aims to focus on technology transfer, the pre-innovation stage, to provide a supplementary understanding of the complementarity and contradictoriness of paradoxical coopetition, with the formal and informal governance mechanisms which are suitable with this understanding in coopetition. Design/methodology/approach This study conducted an original, multisource survey of 280 Chinese manufacturing firms. Hypotheses were tested through multiple regressions. Findings Coopetition has a positive impact on technology transfer between firms. Along with the increasing specificity of assets invested ex ante as a kind of formal governance mechanism, the relationship between coopetition and technology transfer becomes stronger. Meanwhile, inter-firm justice as an informal governance mechanism in the technology transfer process can be positively affected by coopetition between partners. Originality/value The study adds to the business-to-business coopetition literature on how to properly treat and use coopetition in technology transfer. Using the paradox perspective in the Chinese context, the findings emphasize the positive role of coopetition in the inter-firm technological exchange process, enriching the understanding of the complementary and contradictory features of paradoxical coopetition. To govern coopetitive relationships, the firms should also implement two fundamental governance mechanisms, that is, specialty asset and inter-firm justice.

Overconfidence bias and stock market volatility in Ghana: testing the rationality of investors in the Covid-19 era

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raphael Kuranchie-Pong ◽  
Joseph Ato Forson
Keyword(s):  
Stock Market ◽  
Granger Causality ◽  
Private Information ◽  
Trading Volume ◽  
Variance Estimation ◽  
Public Information ◽  
Investment Decisions ◽  
Stock Market Volatility ◽  
Content Type ◽  
Overconfidence Bias

PurposeThe paper tests the overconfidence bias and volatility on the Ghana Stock Exchange (GSE) during the pre-Covid-19 pandemic and Covid-19 pandemic period.Design/methodology/approachThe study employs pairwise Granger causality to test the presence of overconfidence bias on the Ghana stock market as well as GARCH (1,1) and GJR-GARCH (1, 1) models to understand whether overconfidence bias contributed to volatility during pre-Covid-19 pandemic and Covid-19 pandemic period. The pre-Covid-19 pandemic period spans from January, 2019 to December, 2019, and Covid-19 pandemic period spans from January, 2020 to December, 2020.FindingsThe paper finds a unidirectional Granger causality running from weekly market returns to weekly trading volume during the Covid-19 pandemic period. These results indicate the presence of overconfidence bias on the Ghana stock market during the Covid-19 pandemic period. Finally, the conditional variance estimation results showed that excessive trading of overconfident market players significantly contributes to the weekly volatility observed during the Covid-19 pandemic period.Research limitations/implicationsThe empirical findings demonstrate that market participants on the GSE exhibit conditional irrationality in their investment decisions during the Covid-19 pandemic period. This implies investors overreact to private information and underreact to available public information and as a result become overconfident in their investment decisions.Practical implicationsFindings from this paper show that there is evidence of overconfidence bias among market players on the GSE. Therefore, investors, financial advisors and other market players should be educated on overconfidence bias and its negative effect on their investment decisions so as to minimize it, especially during the pandemic period.Originality/valueThis study is a maiden one that underscores investors’ overconfidence bias in the wake of a pandemic in the Ghanaian stock market. It is a precursor to the overconfidence bias discourse and encourages the testing of other behavioral biases aside what is understudied during the Covid-19 pandemic period in Ghana.

The impact of heuristic biases on investors’ investment decision in Pakistan stock market: moderating role of long term orientation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imran Khan ◽  
Mustafa Afeef ◽  
Shahid Jan ◽  
Anjum Ihsan
Keyword(s):  
Stock Market ◽  
Investment Decision ◽  
Investment Decisions ◽  
Moderating Effect ◽  
Individual Investors ◽  
Content Type ◽  
Availability Bias ◽  
Moderating Role

Purpose The purpose of this paper is to investigate the effect of heuristic biases, namely, availability bias and representativeness bias on investors’ investment decisions in the Pakistan stock exchange, as well as the moderating role of long-term orientation. Design/methodology/approach Using a structured questionnaire, a total of 374 responses have been collected from individual investors trading in PSX. The relationship was tested by applying the partial least square structural equation model using SmartPLS 3.2.2. Further, Henseler and Chin’s (2010) product indicator approach for moderation analysis was applied to the data set. Findings The results revealed that availability bias and representativeness bias have a significant and positive influence on the investment decisions of investors. Furthermore, a significant moderating effect of long term orientation on the effect of representativeness bias on investment decision is observed. This suggests that investors’ long term orientation weaken the effect of representativeness bias on investment decision. However, no significant moderating effect was observed for availability bias. Originality/value The paper provides novel insights on the role of heuristic-driven biases on the investment decisions of individual investors in the stock market. Particularly, it enhanced the understanding of behavioral aspects of investment decision-making in an emerging market.

Promoting strategic performance through strategic orientation and strategic renewal

2019 ◽  
Vol 58 (2) ◽  
pp. 376-392 ◽  
Author(s):  
Hassan Ahmed Shah ◽  
Muhammad Yasir ◽  
Abdul Majid ◽  
Muhammad Yasir ◽  
Asad Javed
Keyword(s):  
Positive Impact ◽  
Moderated Mediation ◽  
Strategic Orientation ◽  
Mediation Model ◽  
Content Type ◽  
Strategic Performance ◽  
Strategic Renewal ◽  
Mediating Role ◽  
Moderated Mediation Model

Purpose The purpose of this paper is to explore the ways in which strategic orientation (SO) and strategic renewal (SR) could create the possibility for improving strategic performance (SP). The indirect effect of SO was also tested in this study. Furthermore, by using the moderated mediation model, the authors also investigated the moderating role of organizational ambidexterity (OA). Design/methodology/approach The results of this cross-sectional study are based on a survey conducted on 1,430 owner/managers of SMEs. To analyze the relationship among variables, this study used descriptive, correlation and hierarchical multiple regression approach. Findings Results revealed that SO positively affects SR and SP in SMEs. Furthermore, the mediating role of SR between the relationships of SO and SP was also confirmed. Moreover, OA strengthens the connection between SO, SR and SP. Practical implications The current study provides new insights for strategic planning and management by focusing on SO along with its different dimensions. Therefore, it provides new guidelines and a roadmap that would be helpful in achieving the objectives of SP. Originality/value The study makes significant contributions to the extant literature by adding new knowledge about the positive impact of SO on SP. Moreover, with the analysis of mediating role of SR in this relationship, the study has made significant addition to the existing literature on SP. Furthermore, moderated mediation model adds value to the existing body of knowledge.

Paternity leave: stepchild of family-friendly policies. Moderating the role of traditional masculinity ideology

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bhawana Maheshwari ◽  
Jatin Pandey ◽  
Aditya Billore
Keyword(s):  
Organizational Support ◽  
Positive Impact ◽  
Theory And Practice ◽  
Content Type ◽  
Masculinity Ideology ◽  
Moderated Mediation Model ◽  
Paternity Leave ◽  
Traditional Masculinity ◽  
The Relationship

PurposeThe purpose of this study is to demonstrate the importance and influence of paternity leave on individual level organizational outcomes. Drawing on signaling theory, the study examines the relationship between paid paternity leave entitlement (PPLE) and organizational attractiveness (OA) through a mediating path of anticipated organizational support (AOS). Furthermore, the study proposes that this mediated relationship would be conditional on traditional masculinity ideology (TMI) such that the relationship would be stronger for individuals who score low on TMI.Design/methodology/approachThe study analyzed a moderated mediation model using the data from a survey experiment. Data were collected from 264 professionals enrolled in an executive education course and will soon be looking for employment.FindingsThe findings supported the mediating role of AOS between PPLE and OA. As predicted, the positive impact of PPLE on AOS and OA is stronger for individuals scoring low on TMI.Originality/valueThis study takes a multidisciplinary approach to understand the underlying mechanisms that impact decisions related to employers. It is one of the few studies that study paternity leave in the Indian context and makes important contributions to theory and practice.

Silk Road Economic Belt strategy and industrial total-factor productivity

2019 ◽  
Vol 30 (1) ◽  
pp. 260-282 ◽  
Author(s):  
Jian Feng ◽  
Lingdi Zhao ◽  
Huanyu Jia ◽  
Shuangyu Shao
Keyword(s):  
Sustainable Development ◽  
Total Factor Productivity ◽  
Causal Effect ◽  
Silk Road ◽  
Factor Productivity ◽  
Positive Role ◽  
Content Type ◽  
Silk Road Economic Belt ◽  
The Difference

Purpose The purpose of this paper is to assess the effectiveness of the Silk Road Economic Belt (SREB) strategy and its role of industrial productivity in China. Design/methodology/approach To identify the causal effect of this strategy on industrial sustainable development, the authors first use the slacks-based measure model to calculate industries’ total-factor productivity (TFP) considered with CO2 emissions as undesirable output on the provincial level. Then, the authors use the PSM-DID method to identify the difference of TFPs between provinces and industries before and after the implementation of SREB strategy. Findings However, the authors find that there is no difference or even a relative decrease in TFPs of industries in target provinces after the implementation of the strategy, which reveals that the SREB strategy does not play a positive role of the industries’ sustainable development in years of 2014 and 2015. Originality/value The value of this result is to identify the short-term impact of SREB strategy and to seek for probable causes and appropriate solutions.

The relationship between training satisfaction, organisational citizenship behaviour, and turnover intention

2017 ◽  
Vol 4 (3) ◽  
pp. 267-290 ◽  
Author(s):  
Mumtaz Ali Memon ◽  
Rohani Sallaeh ◽  
Mohamed Noor Rosli Baharom ◽  
Shahrina Md Nordin ◽  
Hiram Ting
Keyword(s):  
Turnover Intention ◽  
Structural Equation ◽  
Oil And Gas ◽  
Positive Impact ◽  
Future Research ◽  
Content Type ◽  
Training Satisfaction ◽  
Negative Effect ◽  
Unexpected Findings

Purpose The purpose of this paper is to explore the role of training satisfaction as a predictor of organisational citizenship behaviour (OCB) and turnover intention. The study further examines the mediating role of OCB between training satisfaction and turnover intention. Design/methodology/approach Data were collected from 409 Malaysian oil and gas (O&G) sector employees. Partial least squares structural equation modelling (PLS-SEM) was used to test the hypotheses in the research model using SmartPLS 3.0. Findings This study highlights the significant positive impact of training satisfaction on OCB and the negative effect on turnover intention. Contrary to expectations, OCB proved to be neither a predictor of turnover intention nor a mediator in the model. Practical implications Although the main aim of this study was to test the theoretically driven hypotheses, the findings have a number of valuable implications for organisations. This study suggests that O&G organisations should focus on increasing employee satisfaction with training to maximise desired workplace attitudes and behaviours. Originality/value This is the first study to explore the causal links between training satisfaction, OCB and turnover intention. Although it has been observed in the past that training does not directly influence turnover intention, the present study indicates that training satisfaction significantly influences turnover intention. Further, this study unexpectedly found no direct relationship between OCB and turnover intention. Also, OCB was not a significant mediator in the present study. These unexpected findings open new avenues for future research, thus representing an important contribution of the present study.

The role of perceived social media agility in customer engagement

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
David Gligor ◽  
Sıddık Bozkurt
Keyword(s):  
Social Media ◽  
Online Survey ◽  
Positive Impact ◽  
Customer Engagement ◽  
Measurement Scale ◽  
Content Type ◽  
Study Results ◽  
Seeking Behavior ◽  
The Impact

Purpose The concept of agility has been applied to several domains to help firms develop the capability to quickly adjust their operations to cope and thrive in environments characterized by frequent changes. Despite the soaring number of social media users and the benefits associated with agility in other domains, the application of agility in a social media context has yet to be explored. Further, little is known about how agility in a social media context impacts desirable customer-related attributes, such as customer engagement and customer-based brand equity (CBBE). This paper aims to address this gap by adapting the construct to social media (i.e. perceived social media agility) and exploring its impact on customer engagement and CBBE. Design/methodology/approach This paper conducted an online survey with 200 adult subjects. This paper used multivariate regression analyzes to empirically test a scale for perceived social media agility and explore its impact on CBBE and customer engagement, along with the moderating role of customer change-seeking behavior. Findings The study results show that perceived social media agility directly and indirectly (through customer engagement) positively influences CBBE. Also, results show that the positive impact of perceived social media agility on CBBE is further magnified for customers high on change-seeking. However, customer change-seeking does not affect the strength or direction of the impact of perceived social media agility on customer engagement. Originality/value This paper contributes to social media literature by adapting and testing a measurement scale for the construct of perceived social media agility and exploring its role in enhancing customer engagement and CBBE.

ENVIRONMENTAL REGULATION IMPROVES THE FIRM PERFORMANCE IN THE PAPER INDUSTRY IN CHINA

2021 ◽  
pp. 1-32
Author(s):  
YONGLIANG YANG ◽  
LILI DING ◽  
YI LI
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Paper Industry ◽  
Average Treatment Effect ◽  
Small Scale ◽  
Positive Role ◽  
Firm Level ◽  
Innovation Ability ◽  
The Relationship

This research develops a difference-in-differences (DID) model to explore the relationship between environmental policy (The Measures for the Administration of Permits for the Discharge of Key Water Pollutants in the Huaihe and Taihu River Basins, MAPD) and the performance of firms involved in the paper and paper products industry (MPP) in China. Cost and innovation are introduced as mediators to explore the mediating effects. A firm-level dataset from 1998 to 2007 is adopted for empirical study. The findings support the positive role of the MAPD, and the average treatment effect is 0.016.The heterogeneity analysis shows that the MAPD exerts a positive impact on non-state-owned and small-scale enterprises, with coefficients of 0.018 and 0.021, respectively. Moreover, MAPD increases enterprise costs harming firm performance. On the other hand, it can promote firm performance by improving innovation ability.

Hierarchical financing and reality of the financial structure of Moroccan listed companies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Firano Zakaria ◽  
Doughmi Salawa
Keyword(s):  
Stock Exchange ◽  
Financial Structure ◽  
Order Theory ◽  
Debt Ratio ◽  
Growth Opportunities ◽  
Pecking Order ◽  
Positive Role ◽  
Pecking Order Theory ◽  
Content Type

Purpose There is a wealth of literature on the financing structure of a company. For this reason, the authors considered it useful to present a theoretical and empirical literature review of classical and new theories of the financial structure. The purpose of this study is to realize on a panel of 15 nonfinancial Moroccan companies listed on the Casablanca Stock Exchange, over a period of 11 years. Design/methodology/approach The results obtained indicate that only a few variables from financial theory have an important role in the financing policy of Moroccan companies. The authors have presented the positive role of size and self-financing on the debt ratio. The analysis of the effects of profitability shows in this study that it is negative related on the debt ratio which asserts the predictions of the pecking order theory. Also, the age of the company and the growth opportunities explain the level of indebtedness. Findings Econometric analysis is used to ascertain the nature of the financial structure of listed companies. For this purpose, a large number of companies listed on the Casablanca stock exchange were used. Originality/value The authors have presented the positive role of size and self-financing on the debt ratio. Regarding the influence of profitability, this analysis shows that it is negative related on the debt ratio which asserts the predictions of the pecking order theory. Also, the age of the company and the growth opportunities explain the level of indebtedness.

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