The effects of stated preferences for firm characteristics, optimism and overconfidence on trading activities

2016 ◽  
Vol 34 (7) ◽  
pp. 1114-1130 ◽  
Author(s):  
Mohammad Tariqul Islam Khan ◽  
Siow-Hooi Tan ◽  
Lee-Lee Chong
Keyword(s):  
Trading Volume ◽  
Survey Methodology ◽  
Simple Random Sampling ◽  
Stated Preferences ◽  
Firm Characteristics ◽  
Content Type ◽  
Financial Domain ◽  
Trading Decisions ◽  
Trading Activities ◽  
Volume Characteristics

Purpose The purpose of this paper is to test the competing explanations of stated preferences for firm characteristics, optimism and overconfidence for trading activities in a single framework. Design/methodology/approach A survey methodology is followed to collect the data among retail investors in Malaysia using simple random sampling. Findings The findings show simultaneous identification of stated preferences for firm characteristics, optimism and overconfidence as determinants of trading activities. Preferences for firm’s profitability characteristics, management and product-related attributes and risky characteristics are likely to decrease investors’ trading activities. On the other hand, preferences for firm’s liquidity and trading volume characteristics with relative financial-domain optimism, personal investment optimism and better-than-average aspect of overconfidence are likely to increase investors’ trading activities. Practical implications This finding implies that investors should be careful not only in assessing firm’s characteristics but also need to understand the effects of optimism and overconfidence in trading decisions. Originality/value The study considers various aspects of optimism and overconfidence, and the stated preferences for firm characteristics, unlike one aspect of these behavioral biases and indirect observation of preferences for firm characteristics. Furthermore, the study considers trading frequency, annual portfolio turnover and trading intention, whereas earlier studies considered only one or two of these trading decisions.

Differential informativeness of analyst reports by investor types

2017 ◽  
Vol 43 (5) ◽  
pp. 567-594 ◽  
Author(s):  
Kyung Soon Kim ◽  
Jinwoo Park ◽  
Yun W. Park
Keyword(s):  
Institutional Investors ◽  
Trading Volume ◽  
Individual Investors ◽  
Release Dates ◽  
Firm Characteristics ◽  
Volume Data ◽  
Content Type ◽  
Trading Activities ◽  
Foreign Institutional Investors ◽  
Trading Responses

Purpose The purpose of this paper is to investigate whether there is any difference across individual investors, domestic and foreign institutional investors in trading volume responses to analyst reports. The authors also examine the determinants of trading volume responses using firm as well as forecast characteristics. Design/methodology/approach The authors use trading data from the Korean equity market. The authors divide investors into three classes of investors; namely, individual investors, domestic institutional investors, and foreign institutional investors. The authors then examine whether the trading responses to analyst reports vary across investor types, and how firm characteristics and characteristics of analyst reports influence the trading activities on the release dates across investor types. Findings Individual investors are the most responsive investor group, being responsive to analyst reports on small, neglected firms with large inside ownership as well as to analyst reports with optimistic forecasts. Domestic institutional investors are responsive to reports on neglected firms with high return volatility while foreign institutional investors show least responses. Originality/value There are few studies that investigate whether the trading responses to analyst reports vary across investor types and how firm characteristics and characteristics of analyst reports influence the trading activities on the release dates across investor types. Taking advantage of the trading volume data for the three main investor types in the Korean stock market, the authors study the trading volume responses for each investor type and make comparisons across investor types.

Gender differences in preferences for firm characteristics across different groups of investors

2016 ◽  
Vol 8 (1) ◽  
pp. 2-15 ◽  
Author(s):  
Mohammad Tariqul Islam Khan ◽  
Siow-Hooi Tan ◽  
Lee-Lee Chong
Keyword(s):  
Gender Differences ◽  
Gender Gap ◽  
Institutional Investors ◽  
Stock Price ◽  
Trading Volume ◽  
Firm Characteristics ◽  
Content Type ◽  
Know How ◽  
Dividend Payments ◽  
Practical Implications

Purpose – This paper aims to study gender differences in preferences for firm characteristics across various groups of investors in Malaysia. Design/methodology/approach – Self-declared preferences are elicited through a survey of 520 investors comprising retail, financial professionals and institutional investors in the Malaysian stock market. Non-parametric (Mann-Whitney and Kruskal-Wallis) tests are computed to achieve the stated objective. Findings – Results reveal that female investors display higher preferences for the liquidity of a firm, dividend payments, trading volume of a firm, stock price and firm’s age than male investors across investor’s groups. Research limitations/implications – Findings imply that the gender gap in investing behaviour can be partly attributed to gender differences in preferences for firm characteristics. Practical/implications – The findings suggest that the gender gap can be mitigated by giving more priority to the choices of female investors with respect to firm characteristics. In turn, this may reduce a part of the gender gap in investing. Moreover, the findings would assist companies to understand and know how their shareholder’s preferences vary with respect to gender and investor’s groups. Originality/value – This paper provides evidence concerning the gender gap in investor’s self-declared preferences for firm characteristics across retail, financial professionals and institutional investors in Malaysia, which complements previous studies that used equity holdings data and only two groups of investors.

Stated Preferences for Firm’s Characteristics and Asset Allocation Decisions

2019 ◽  
Vol 20 (4) ◽  
pp. 839-855
Author(s):  
Mohammad Tariqul Islam Khan ◽  
Siow-Hooi Tan
Keyword(s):  
Asset Allocation ◽  
Trading Volume ◽  
Logistic Models ◽  
Stated Preferences ◽  
Asset Holding ◽  
Volume Characteristics ◽  
The Relationship ◽  
Allocation Decisions ◽  
Diversified Portfolio

The present article investigates the relationship between stated preferences for firm’s characteristics and asset allocation decisions. Data from the survey of retail investors in Malaysia are used for estimations by employing binary logit and ordered logistic models. The analyses show that preferences for a firm’s value characteristics, quality of management and product characteristics, risky characteristics, liquidity and trading volume characteristics affect holding of a particular financial asset, number of asset holding, quite diversified portfolio holding and hypothetical asset allocation. However, a firm’s characteristics have no influence on fully diversified portfolio. In Malaysia, the regulators may consider the investor’s preferences for specific firm’s characteristics in designing policies to reduce the apparent structural imbalance in the capital market.

Rationales of gender diversity management policies and practices in India: an exploratory empirical study in the Indian IT/ITeS industry

2020 ◽  
Vol 39 (6) ◽  
pp. 667-688
Author(s):  
Shreyashi Chakraborty ◽  
Leena Chatterjee
Keyword(s):  
Survey Methodology ◽  
Economic Value ◽  
Gender Diversity ◽  
Diversity Management ◽  
Business Case ◽  
Full Time ◽  
Content Type ◽  
Indian Context ◽  
Management Policies ◽  
Policies And Practices

PurposeThe Indian context is marked with weak anti-discrimination laws and patchy implementation of protection of civil rights of women at workplaces. The purpose of this paper is to unearth the rationales of the adoption of gender diversity management policies and practices in India, in the absence of laws and regulations.Design/methodology/approachInspiration is drawn from previous studies on diversity management in other national contexts, and a survey methodology was adopted. The lead researcher administered the questionnaires personally to all respondents to ensure that the understanding of the questions is uniform across respondents as gender diversity management is a relatively new concept in India.FindingsSize of the organisation (number of full-time employees), the influence of external organisations and perceived enhanced organisational flexibility were found to explain the adoption of gender diversity management policies and practices in the Indian IT/ITeS industry. Findings also indicate that Indian subsidiaries of foreign multinationals tend to adopt more gender diversity management policies and practices as compared to Indian-owned organisations.Research implicationsThis study provides evidence that organisations do not always enact structures or behaviours in the pursuit of normative rationality and also consider the economic value of them, establishing an organisational agency in adopting legitimated norms or practices. The study also shows that gender diversity management policies and practices are not only dependent on the enactment of laws but also are adopted because of the economic benefit perceived.Originality/valueDiversity management policies and practices have been mostly studied in national contexts with anti-discrimination laws or affirmative action programs and have been claimed to be a successor of equal employment opportunity (EEO) policies. In the absence of stringent laws to reduce or eliminate discrimination against women employees in Indian workplaces, this study contributes to the literature by determining whether the business case for gender diversity drives the adoption of gender diversity management in the Indian context.

scholarly journals Segmentation of quantity surveying professional services for focus strategy and diversification

2019 ◽  
Vol 24 (3) ◽  
pp. 294-308
Author(s):  
Michael Adesi ◽  
De-Graft Owusu-Manu ◽  
Frank Boateng
Keyword(s):  
Oil And Gas ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Professional Services ◽  
Professional Service ◽  
Service Firms ◽  
Professional Service Firms ◽  
Content Type ◽  
Quantity Surveying ◽  
Focus Strategy

Purpose Notwithstanding that numerous studies have focused on strategy in quantity surveying (QS) professional service firms, there is a paucity of investigation on the segmentation of QS professional services. The purpose of this study is to investigate the segmentation of QS services for diversification and a focus strategy formation. Design/methodology/approach This study adopts the positivist stance and quantitative approach in which a simple random sampling technique was used to select participants. In total, 110 survey questionnaires were administered to registered professional QS, out of which 79 completed questionnaires were returned for analysis. Findings The paper identifies three main QS service segments characterised by low, moderate and high competition. In addition, this study found that the concentration of traditional QS services in the building construction sector is due to the unwillingness of QS professional service firms to diversify into the non-construction sectors such as oil and gas. The diversification of QS services in the low competitive segment requires the adoption of agile approaches. Research limitations/implications The study was limited to numeric analyses and so would be complemented by qualitative research in the future. Practical implications This paper is useful to QS professional service firms interested in diversifying their services into the non-construction sectors to enhance the pricing of their services. Originality/value Segmentation of QS services is fundamental to the formulation of focus strategy for non-construction sectors such as oil and gas and mining to enhance the pricing of QS professional services.

The role of organizational culture in the knowledge management process

2015 ◽  
Vol 19 (3) ◽  
pp. 433-455 ◽  
Author(s):  
Christina Ling-hsing Chang ◽  
Tung-Ching Lin
Keyword(s):  
Organizational Culture ◽  
Knowledge Management ◽  
Customer Service ◽  
Survey Methodology ◽  
Cultural Dimensions ◽  
Content Type ◽  
Knowledge Resources ◽  
Positive Effects ◽  
Wide Range ◽  
The Individual

Purpose – The purpose of the study is to focus on the enhancement of knowledge management (KM) performance and the relationship between organizational culture and KM process intention of individuals because of the diversity of organizational cultures (which include results-oriented, tightly controlled, job-oriented, closed system and professional-oriented cultures). Knowledge is a primary resource in organizations. If firms are able to effectively manage their knowledge resources, then a wide range of benefits can be reaped such as improved corporate efficiency, effectiveness, innovation and customer service. Design/methodology/approach – The survey methodology, which has the ability to enhance generalization of results (Dooley, 2001), was used to collect the data utilized in the testing of the research hypotheses. Findings – Results- and job-oriented cultures have positive effects on employee intention in the KM process (creation, storage, transfer and application), whereas a tightly controlled culture has negative effects. Research limitations/implications – However, it would have been better to use a longitudinal study to collect useful long-term data to understand how the KM process would be influenced when organizational culture dimensions are changed through/by management. This is the first limitation of this study. According to Mason and Pauleen (2003), KM culture is a powerful predictor of individual knowledge-sharing behavior, which is not included in this study. Thus, this is the second limitation of this paper. Moreover, national culture could be an important issue in the KM process (Jacks et al., 2012), which is the third limitation of this paper for not comprising it. Practical implications – In researchers’ point of view, results- and job-oriented cultures have positive effects, whereas a tightly controlled culture has a negative effect on the KM process intention of the individual. These findings provide evidences that challenge the perspective of Kayworth and Leidner (2003) on this issue. As for practitioners, management has a direction to modify their organizational culture to improve the performance of KM process. Social implications – Both behavioral and value perspectives of the organizational cultural dimensions (results-oriented, tightly control, job-oriented, sociability, solidarity, need for achievement and democracy) should be examined to ascertain their effects firstly on KM culture and then on the KM process intention of the individual. It is hoped that the current study will spawn future investigations that lead to the development of an integrated model which includes organizational culture, KM culture and the KM process intention of the individual. Originality/value – The results-oriented, loosely controlled and job-oriented cultures will improve the effectiveness of the KM process and will also increase employees’ satisfaction and willingness to stay with the organization.

Disposition effect at the market level: evidence from Indian stock market

2019 ◽  
Vol 12 (2) ◽  
pp. 69-82
Author(s):  
Sravani Bharandev ◽  
Sapar Narayan Rao
Keyword(s):  
Trading Volume ◽  
Stock Exchange ◽  
Reference Points ◽  
Disposition Effect ◽  
Content Type ◽  
Ex Post ◽  
Abnormal Trading Volume ◽  
The Difference ◽  
Trading Volumes ◽  
Indian Stock Market

Purpose The purpose of this paper is to test the disposition effect at market level and propose an appropriate reference point for testing disposition at market level. Design/methodology/approach This is an empirical study conducted on 500 index stocks of NSE500 (National Stock Exchange). Winning and losing days for each stock are calculated using 52-week high and low prices as reference points. To test disposition effect, abnormal trading volumes of stocks are regressed on their percentage of winning (losing) days. Further using ANOVA, the difference between mean of percentage of winning (losing) days of high abnormal trading volume deciles and low abnormal trading volume deciles is tested. Findings Results show that a stock’s abnormal trading volume is positively influenced by the percentage of winning days whereas percentage of losing days show no such effect. Findings are consistent even after controlling for volatility and liquidity. ANOVA results show the presence of high percentage of winning days in higher deciles of abnormal trading volumes and no such pattern in case of losing days confirms the presence of disposition effect. Further an ex post analysis indicates that disposition prone investors accumulate losses. Originality/value This is the first study, which proposes the use of 52-week high and low prices as reference points to test the market-level disposition effect. Findings of this study enhance the limited literature available on disposition effect in emerging markets by providing evidence from Indian stock markets.

Clients’ means of influence on mortgage valuation in Nigeria

2015 ◽  
Vol 33 (4) ◽  
pp. 367-385 ◽  
Author(s):  
Chukwuma C. Nwuba ◽  
Uche S. Egwuatu ◽  
Babatunde M. Salawu
Keyword(s):  
Risk Mitigation ◽  
Hierarchical Linear Model ◽  
Firm Characteristics ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Mortgage Valuation ◽  
Research Designs ◽  
Client Pressure ◽  
The Impact

Purpose – The purpose of this paper is to investigate client influence on mortgage valuation in Nigeria to establish and rank the means of influence clients employ, and the impact of firm characteristics on client influence. Design/methodology/approach – A combination of cross-sectional survey and focus groups research designs was adopted. Questionnaire structured on five-point Likert format was used to collect data from a sample of valuation firms in five Nigerian cities. Descriptive statistics, χ2, and moderated hierarchical linear model were used for data analysis. Findings – Clients’ means of influence on valuation are more of subtle approach than threat or coercion. The most prevalent means are respectively, plea for assistance, promise of continued retainership on banks’ valuer panels, and disclosing the loan amount. Client influence differs across cities; firm characteristics have no influence on client pressure. Practical implications – The research provides basis for valuation bodies to review practice rules and standards and seek for legislation for valuer independence. It can serve as material for teaching and training in professional ethics. Social implications – Biased valuations jeopardises credit risk mitigation process with potential for destabilising banks, finance sector, and consequences for the economy. Originality/value – The study provides empirical evidence of the nature of client influence across several major Nigerian cities. In contrast to existing Nigerian studies that focus on single cities, the study covers several cities. It therefore provides a broad basis for problem-solving and decision-making.

Short‐sell moratorium effects on regional bank performance

2013 ◽  
Vol 5 (2) ◽  
pp. 92-110
Author(s):  
Michael Devaney ◽  
William L. Weber
Keyword(s):  
Trading Volume ◽  
Short Selling ◽  
Bank Risk ◽  
Too Big To Fail ◽  
Content Type ◽  
Naked Short Selling ◽  
Regional Bank ◽  
Capm Model ◽  
Short Sell ◽  
Regional Banks

PurposeThe purpose of this paper is to investigate the effects of the 2008 SEC short‐sell moratorium on regional bank risk and return. The paper also examines the decline in “failures to deliver” securities in the wake of SEC short‐sell moratorium.Design/methodology/approachIn total, six regional bank portfolios are derived and the beta coefficients from a CAPM model are estimated using the integrated generalized autoregressive conditional heteroskedasticity (IGARCH) method accounting for the short‐sell moratorium. Data on 110 regional banks in six US regions from January 2002 to December 30, 2011 are used to estimate the model.FindingsThe ban on naked short selling and the SEC short‐sell moratorium significantly increased individual bank risk for a majority of banks in six geographic regions, but also increased return in three of three regions. There was also reduced naked short selling as failures to deliver securities declined sharply after the September 2008 moratorium took effect.Originality/valueRegional banks have generally not achieved the size needed to be deemed “too big to fail” by policy‐makers. Thus, policy changes such as the SEC short‐sell moratorium might be expected to have larger effects on regional banks than on larger banks, which might be shielded from the policy change by having achieved “too big to fail” status. The authors' results are consistent with research that has shown that short‐sell restrictions increase risk by reducing liquidity and trading volume.

The mediating effect of supply chain flexibility on the relationship between supply chain integration and supply chain performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anurodhsingh Khanuja ◽  
Rajesh Kumar Jain
Keyword(s):  
Supply Chain ◽  
Survey Methodology ◽  
Mediating Effect ◽  
Supply Chain Integration ◽  
Supply Chain Performance ◽  
Business Practices ◽  
Chain Flexibility ◽  
Content Type ◽  
Supplier Integration ◽  
The Relationship

PurposeSupply chain integration (SCI) and flexibility (SCF) are recognised as crucial business practices and capability in the global competitive market. However, limited research has paid attention to study the relationship between SCI, SCF and their impact on supply chain performance (SCP). Therefore, the purpose of this paper is to establish a relationship between integration, flexibility and performance.Design/methodology/approachThe structural equation modelling technique was used to analyse the 187 data collected from Indian organisations through the survey methodology.FindingsFindings indicate that external integration contributes significantly to realise SCF and SCP. Sourcing and logistics flexibility also help to improve the SCP. The mediation analysis showed that the association of customer and supplier integration with SCP is partially and fully mediated by logistics flexibility, respectively. This study suggests that integration influences the SCP when the firm has a strong association with downstream partners and enough capability for logistics flexibility.Research limitations/implicationsThe study has collected cross-sectional data to analyse the relationship between SCI, SCF and SCP. However, as integration requires an effort of the years, longitudinal data and industry-specific studies may provide comprehensive views to validate the results of this study.Originality/valueBuilding on relational view theory and dynamic capability theory, the study has proposed the SCP assessment framework based on the relationship between SCI and SCF.

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