Stock market investment and different behavioural patterns: an exploratory study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Metin Argan ◽  
Güven Sevil ◽  
Abdullah Yalaman ◽  
Viktor Manahov
Keyword(s):  
Stock Market ◽  
Personality Traits ◽  
Emerging Economy ◽  
Current Paper ◽  
Market Data ◽  
Content Type ◽  
Stock Investment ◽  
Behavioural Patterns ◽  
Stock Market Investment ◽  
The Relationship

PurposeThe purpose of the research is to gain an understanding about how stock market investors impact various behavioural personality traits in various consumer groups with differing levels of motivation and capacity to absorb emerging stock market data.Design/methodology/approachThe research has used structural equation modelling (SEM) to test the validity of the theoretical model.FindingsThe current paper is the first study that uses stock market data from an emerging economy to examine the relationship between stock market investment and different behavioural patterns such as stock market attachment, trust, satisfaction and loyalty. The authors observe the presence of direct positive relationships between stock market investment and different behavioural personality traits. Moreover, the authors also observe that stock market attachment can be seen as an intermediary variable between stock investment involvement and satisfaction. The empirical findings also suggest the presence of indirect relationships between stock investment involvement and satisfaction and between stock market attachment and loyalty. The authors find that the indirect relationship between stock market attachment and loyalty occurs when the level of satisfaction is higher. Therefore, satisfaction appears to facilitate the relationship between stock market attachment and loyalty.Research limitations/implicationsOne major limitation of the study is data availability. More specifically, the study was conducted with customers of eight different banks in the province of Eskisehir, Turkey. From the 250 questionnaires distributed, 173 were returned, yielding a response rate of 69.2%.Practical implicationsBy identifying the trait characteristics of segments of stock market participants relative to their propensity to invest in stocks, it is possible to tailor messages that influence people to invest for the long term.Originality/valueThe paper deploys stock market data from an emerging economy to investigate the relationship between stock market investment and different surface traits such as stock market attachment, trust, satisfaction and loyalty. To the best of the authors' knowledge the current paper is the first such study.

Does investor personality moderate the relationship between information sources and trading behavior? Evidence from Chinese stock market

2017 ◽  
Vol 43 (5) ◽  
pp. 545-566 ◽  
Author(s):  
Muhammad Zubair Tauni ◽  
Zia-ur-Rehman Rao ◽  
Hong-Xing Fang ◽  
Minghao Gao
Keyword(s):  
Stock Market ◽  
Personality Traits ◽  
Chinese Stock Market ◽  
Sources Of Information ◽  
Trading Behavior ◽  
Content Type ◽  
Trading Frequency ◽  
Word Of Mouth Communication ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the impact of the key sources of information, namely, financial advice, word-of-mouth communication and specialized press, on trading behavior of Chinese stock investors. The study also analyzed if the association between the key sources of information and trading behavior is influenced by investor personality. Design/methodology/approach The authors adopted the Big Five personality framework and examined the survey results of individual stock investors (n=541) in China. Personality traits of investors were measured by the NEO-Five Factor Inventory (Costa and McCrae, 1989). The authors performed probit regression analysis to evaluate the moderating influence of investor personality traits on the association between sources of information and stock trading behavior. Findings The results of the study confirm the previous findings that the key sources of information used by investors as a foundation of their financial choices have a significant influence on their trading behavior. The study also provides empirical evidence that investor personality traits moderate the relationship between the key sources of information and trading behavior. Financial advisors tend to increase the frequency of trading in investors with openness, extraversion, neuroticism and agreeableness personality traits, and tend to decrease the intensity of trading in investors with conscientiousness trait. On the other hand, financial information acquired from word-of-mouth communication is more likely to enhance trading frequency in extraverted and agreeable investors, and is more likely to reduce trading frequency in investors with openness, conscientiousness and neuroticism traits. Finally, the use of specialized press leads to more adjustment in portfolios of the investors with openness and conscientiousness traits than those with other personality traits. An alternative mediated model was not supported. Originality/value This research contributes to information search literature and behavioral finance literature and provides empirical evidence that the psychological characteristics of investors are significant predictors of the variations in information-trading link. The study offers new theoretical insights of investors’ behavior due to the characteristics of Chinese stock market which are unique from other stock markets in the world. To the authors’ best knowledge, no previous study has been conducted so far in Chinese stock market to explore variations with regards to the impact of the key sources of information on trading behavior by the Big Five investor personality and this paper seeks to fill this gap.

The impact of manager’s personality traits on project success through affective professional commitment: the moderating role of organizational project management maturity system

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aqsa Ameer ◽  
Farah Naz ◽  
Bushra Gul Taj ◽  
Iqra Ameer
Keyword(s):  
Project Management ◽  
Personality Traits ◽  
Structural Equation ◽  
Project Success ◽  
Professional Commitment ◽  
Experimental Proof ◽  
Content Type ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this study is to determine the effect of conscientiousness and extraversion personality traits on project success. The relationship is mediated by affective professional commitment, whilst the relationship between personality traits and project success is moderated by organizational project management maturity. Design/methodology/approach The deductive approach is used to achieve the objectives of this study. Data were collected through a purposive sampling technique from 250 respondents with the help of questionnaires from information technology sectors. The structural equation modelling (SEM) in partial least squares-SEM and SPSS is used to analyse the data and to examine the hypothesis. Findings The outcomes demonstrate the partial mediating impact of affective professional commitment between the relationship of conscientiousness and extraversion personalities with project success. Additionally, it proves the moderating effects of project management maturity between the relationship of conscientiousness and extraversion personalities with project success. Practical implications This study reflects that employee personality appears to be a reliable indicator of how an employee is faithful to his profession. This faithfulness or duty decides the employee’s execution in terms of offering a successful project. Thus, achieving employee commitment needs to be done by completing the project successfully by the organizations in the presence of project management maturity systems. Originality/value It is the first study of its kind to provide experimental proof of the impact of a manager’s personality traits on project success in the presence of affective professional commitment (mediator) and organizational project management maturity (moderator).

Does investment in innovation impact firm performance in emerging economies? An empirical investigation of the Indian food and agricultural manufacturing industry

2021 ◽  
Vol 13 (2) ◽  
pp. 233-248
Author(s):  
Manogna R.L. ◽  
Aswini Kumar Mishra
Keyword(s):  
Firm Performance ◽  
Manufacturing Industry ◽  
Emerging Market ◽  
Developed Countries ◽  
Emerging Economy ◽  
Content Type ◽  
Agricultural Industry ◽  
Indian Food ◽  
The Impact ◽  
The Relationship

Purpose The study aims to analyze the impact of Research & Development (R&D) intensity on the firm’s performance, measured by growth of sales in the emerging market like India. Innovation strategy and its outcomes for firms may be different in developing countries as compared to developed countries. Thus, a study that focuses on the emerging economy like India, with a majority of the population dependent on agriculture, is of prime importance to the firm performance in the food and agricultural manufacturing industry. For this study, the broader focus will be on one widely recognised factor which may influence the growth rate of firms, i.e. investment in innovations which is in terms of R&D expenditure. Design/methodology/approach The paper investigates the relationship between the R&D efforts and growth of firms in the Indian food and agricultural manufacturing industry during 2001–2019. To empirically test the relationship between firm’s growth (FG) and R&D investments, system generalised method of moments technique has been used, hence enabling to avoid problems related to endogeneity and simultaneity. Findings The findings reveal that investments in innovations have a positive effect on the growth of firms in the Indian food and agricultural manufacturing industry. Investment in R&D also enables the firms to reap benefits from externalities present in the industry. Further analysis reveals that younger firms grow faster when they invest in R&D. More specifically, this paper finds evidence in the case of the food and agricultural industry that import of raw materials negatively affects the FG and export intensity positively affects the growth in the case of R&D firms. Research limitations/implications This study suggests that the government should encourage the industries to invest optimally in R&D projects by providing favourable fiscal treatments and R&D subsidies which are observed to have positive effects in various developed countries. Originality/value To the best of the author’s knowledge, the current paper is the first to analyse the impact of innovation in food and agricultural industry on firm’s performance in an emerging economy context with the latest data. This paper agrees that a government initiative to increase private R&D expenditure would have favourable effects on FG as growing investments in R&D lead to further growth of the firms.

Aggregate congressional trading and stock market returns

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Serkan Karadas ◽  
Minh Tam Tammy Schlosky ◽  
Joshua C. Hall
Keyword(s):  
Stock Market ◽  
Industrial Production ◽  
Market Returns ◽  
Stock Market Returns ◽  
Content Type ◽  
Macroeconomic Information ◽  
Corporate Insiders ◽  
The Media ◽  
Congressional Trading ◽  
The Relationship

Purpose What information do members of Congress (politicians) use when they trade stocks? The purpose of this paper is to attempt to answer this question by investigating the relationship between an aggregate measure of trading by members of Congress (aggregate congressional trading) and future stock market returns. Design/methodology/approach The authors follow the empirical framework used in academic work on corporate insiders. In particular, they aggregate 61,998 common stock transactions by politicians over the 2004–2010 period and estimate time series regressions at a monthly frequency with heteroskedasticity and autocorrelation robust t-statistics. Findings The authors find that aggregate congressional trading predicts future stock market returns, suggesting that politicians use economy-wide (i.e. macroeconomic) information in their stock trades. The authors also present evidence that aggregate congressional trading is related to the growth rate of industrial production, suggesting that industrial production serves as a potential channel through which aggregate congressional trading predicts future stock market returns. Originality/value To the best of the authors’ knowledge, this study is the first to document a relationship between aggregate congressional trading and stock market returns. The media and scholarly attention on politicians’ trades have mostly focused on the question of whether politicians have superior information on individual firms. The results from this study suggest that politicians’ informational advantage may go beyond individual firms such that they potentially have superior information on the overall trajectory of the economy as well.

The role of brand personality in the formation of consumer affect and self-brand connection

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Justin F. McManus ◽  
Sergio W. Carvalho ◽  
Valerie Trifts
Keyword(s):  
Personality Traits ◽  
Design Methodology ◽  
Brand Personality ◽  
Content Type ◽  
Mediation Analyses ◽  
Within Subjects ◽  
The Relationship ◽  
Different Levels ◽  
Brand Personality Traits

Purpose This study aims to explore the role of brand personality traits in explaining how different levels of brand favorability evoke affect from and forge connections to consumers. Design/methodology/approach The authors used a quantitative approach consisting of within-subjects (Study 1) and between-subjects (Study 2) experimental designs. Mediation analyses were tested using OLS regression with the MEMORE and PROCESS macros. Findings Findings suggest increases in brand excitement and sincerity to be related to differences in positive affect evoked by favorable and unfavorable brands; decreases in brand sincerity to be related to differences in negative affect between favorable and unfavorable brands (Study 1); brand competence and excitement to be related to the relationship between brand favorability and self-brand connection; and brand competence and excitement to best distinguish favorable brands from unfavorable brands (Study 2). Originality/value These results support the importance of brand personality traits that are considered to be universally positive and provide managers with an initial roadmap for which brand personality traits should be prioritized when communicating with consumers.

The role of heuristic-driven biases in entrepreneurial strategic decision-making: evidence from an emerging economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maqsood Ahmad ◽  
Syed Zulfiqar Ali Shah ◽  
Yasar Abbass
Keyword(s):  
Decision Making ◽  
Emerging Economy ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Decision Making Process ◽  
Strategic Decisions ◽  
Content Type ◽  
The Relationship

PurposeThis article aims to clarify the mechanism by which heuristic-driven biases influence the entrepreneurial strategic decision-making in an emerging economy.Design/methodology/approachEntrepreneurs' heuristic-driven biases have been measured using a questionnaire, comprising numerous items, including indicators of entrepreneurial strategic decision-making. To examine the relationship between heuristic-driven biases and entrepreneurial strategic decision-making process, a 5-point Likert scale questionnaire has been used to collect data from the sample of 169 entrepreneurs who operate in small- and medium-sized enterprises (SMEs). The collected data were analyzed using SPSS and Amos graphics software. Hypotheses were tested using structural equation modeling (SEM) technique.FindingsThe article provides empirical insights into the relationship between heuristic-driven biases and entrepreneurial strategic decision-making. The results suggest that heuristic-driven biases (anchoring and adjustment, representativeness, availability and overconfidence) have a markedly negative influence on the strategic decisions made by entrepreneurs in emerging markets. It means that heuristic-driven biases can impair the quality of the entrepreneurial strategic decision-making process.Practical implicationsThe article encourages entrepreneurs to avoid relying on cognitive heuristics or their feelings when making strategic decisions. It provides awareness and understanding of heuristic-driven biases in entrepreneurial strategic decisions, which could be very useful for business actors such as entrepreneurs, managers and entire organizations. Understanding regarding the role of heuristic-driven biases in entrepreneurial strategic decisions may help entrepreneurs to improve the quality of their decision-making. They can improve the quality of their decision-making by recognizing their behavioral biases and errors of judgment, to which we are all prone, resulting in a more appropriate selection of entrepreneurial opportunities.Originality/valueThe current study is the first to focus on links between heuristic-driven bias and the entrepreneurial strategic decision-making in Pakistan—an emerging economy. This article enhanced the understanding of the role that heuristic-driven bias plays in the entrepreneurial strategic decisions and more importantly, it went some way toward enhancing understanding of behavioral aspects and their influence on entrepreneurial strategic decision-making in an emerging market. It also adds to the literature in the area of entrepreneurial management specifically the role of heuristics in entrepreneurial strategic decision-making; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.

scholarly journals The relationship between intellectual capital information and firms’ market value: a study from an emerging economy

2019 ◽  
Vol 24 (1) ◽  
pp. 39-51
Author(s):  
A.A. Ousama ◽  
Mashael Thaar Al-Mutairi ◽  
A.H. Fatima
Keyword(s):  
Intellectual Capital ◽  
Firm Value ◽  
Stock Exchange ◽  
Market Value ◽  
Total Sample ◽  
Emerging Economy ◽  
Annual Reports ◽  
Content Type ◽  
Knowledge Based Economy ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between the intellectual capital (IC) information reported in the annual reports and market value of the companies listed on the Qatar Stock Exchange. Design/methodology/approach The study is based on a panel data collected from the annual reports and Bloomberg database for six years, specifically the periods 2010-2012 and 2016-2018. The total sample consists of 252 observations. The theoretical framework was developed in reference to the resource-based theory. The regression model is based on Ohlson’s model, which has been modified by including IC information. Findings The study found that there is a significant relationship between IC information and firm market value. This finding indicates that companies report their IC to help the stakeholders (e.g. shareholders, investors) to understand the real value of the company (which includes IC values). Practical implications The shift to a knowledge-based economy (KBE) has made knowledge a driver for economic growth, and it has become more important than capital, land and labour. This shift makes IC and resources vital for companies to create wealth, value and gain competitive advantage. The State of Qatar plans to transform its economy to a KBE in its “Qatar Vision 2030”. The findings of the study show that the companies have started to depend more on IC to contribute to transforming Qatar’s economy to a KBE. Originality/value This study could be considered a pioneer study to examine the association of IC disclosure and firm value in Qatar. Furthermore, prior literature has mixed findings, which justifies further investigation of IC’s effect on market value, particularly in the emerging economy of Qatar.

Personality traits and internet addiction among selected financial institution employees

2019 ◽  
Vol 35 (2) ◽  
pp. 260-271 ◽  
Author(s):  
Ainin Sulaiman ◽  
Kay Yin Shin ◽  
Nina Rofaie
Keyword(s):  
Job Satisfaction ◽  
Personality Traits ◽  
Internet Addiction ◽  
Financial Institution ◽  
Mediating Effect ◽  
Psychological Disorder ◽  
Local Context ◽  
Content Type ◽  
Measurement Tools ◽  
The Relationship

Purpose The purpose of this study is to investigate the relationship between personality traits and internet addiction behavior. Within the same industry background, job satisfaction was measured to test whether there is any mediating effect toward the relationship between personality traits and internet behavior. Design/methodology/approach A sample of 271 employees from financial institutions was selected, and IBM SPSS was used to perform descriptive statistic, correlation analysis and partial regression analysis, to test out three main hypotheses developed in this study. Findings The results indicate that personality traits, namely, agreeableness and emotional stability are negatively related to internet addiction behavior. However, job satisfaction does not mediate the influence of personality traits toward internet addiction behavior, even though the results indicated personality traits, namely, agreeableness, conscientiousness and emotion stability are positively related to job satisfaction. Research limitations/implications The main implication includes better understanding on internet addiction behavior in local context and to predict internet addiction behavior through personality traits for better outcome of awareness and prevention toward this psychological disorder. Originality/value The study contributes in understanding internet addiction behavior in Malaysia occupational context, as most of the local researches focused in validation of measurement tools. Hence, the finding provides an empirical evidence for organizational psychology study in recognition of internet addiction as part of occupational hazards.

scholarly journals The application of personality traits model on the freight forwarding service industry

2016 ◽  
Vol 1 (3) ◽  
pp. 231-252 ◽  
Author(s):  
Kuo-Chung Shang ◽  
Ching-Cheng Chao ◽  
Taih-Cherng Lirn
Keyword(s):  
Job Performance ◽  
Personality Traits ◽  
Task Performance ◽  
Psychological Assessment ◽  
Contextual Performance ◽  
Logistics Industry ◽  
Content Type ◽  
Neo Personality Inventory ◽  
Freight Forwarding ◽  
The Relationship

Purpose The purpose of this study aims to investigate the relationship between employees’ personality traits and their job performances (including task performance and contextual performance) of Taiwanese freight forwarders by using responses from a NEO Personality Inventory-Revised Form (NEO-PI-R) questionnaire survey. Design/methodology/approach One of the most popular personality trait model is the five-factor model (FFM), which includes the big five domains, namely, openness, conscientiousness, extraversion, agreeableness and neuroticism (OCEAN). Each of these five domains includes six facets. Previous researchers have used OCEAN factors to describe the relationship between human personality and job performance. NEO Personality Inventory is a professional psychological assessment instrument published by psychological assessment resources. Multivariate analysis technique and regression technique are used to analyze surveyees’ responses. Findings Research results reveal the following four issues. The seniority of employees in a company has a positive relationship with their conscientiousness. Employees with higher score on the facets of the neuroticism domain have a negative correlation with their task performance and contextual performance. The relationship between employees’ openness to experience and job performance (both task performance and contextual performance) is not significant. Employees’ seniority has a positive correlation with both their task performance and contextual performance. In a nutshell, freight forwarding industry in Taiwan can use the facets in the neuroticism domain to screen and recruit appropriate job applicants. In addition, retaining senior employees could increase a forwarder’s task performance and contextual performance by their high degree of conscientiousness. Originality/value FFM model is a psychological theory dealing with the personality traits and human behavior. Freight forwarding is a labor-intensive business and is one of the most important sectors in the logistics industry. According the authors’ knowledge, the application of FFM on the logistics industry is simply not existed.

An examination of the factors contributing to participation in online social platforms

2016 ◽  
Vol 68 (6) ◽  
pp. 793-818 ◽  
Author(s):  
Jenny Bronstein ◽  
Tali Gazit ◽  
Oren Perez ◽  
Judit Bar-Ilan ◽  
Noa Aharony ◽  
...  
Keyword(s):  
Personality Traits ◽  
Information Exchange ◽  
Political Influence ◽  
Online Participation ◽  
Social Media Data ◽  
Content Type ◽  
Internet Users ◽  
The Social ◽  
The Relationship ◽  
Media Data

Purpose The purpose of this paper is to examine participation in online social platforms consisting of information exchange, social network interactions, and political deliberation. Despite the proven benefits of online participation, the majority of internet users read social media data but do not directly contribute, a phenomenon called lurking. Design/methodology/approach A survey was administered electronically to 507 participants and consisted of ten sections in a questionnaire to gather data on the relationship between online participation and the following variables: anonymity, social value orientation, motivations, and participation in offline activities, as well as the internet’s political influence and personality traits. Findings Findings show that users with high levels of participation also identify themselves, report higher levels of extroversion, openness, and activity outside the internet, the motivations being an intermediary variable in the relationship between the variables value. Originality/value The study shows that participation in online social platforms is not only related to personality traits, but they are impacted by the nature of the motivations that drive them to participate in the particular social platform, as well as by the interest toward the specific topic, or the type or nature of the social group with whom they are communicating.

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