Antecedents to heuristics: decoding the role of herding and prospect theory for Indian millennial investors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Preeti Goyal ◽  
Poornima Gupta ◽  
Vanita Yadav
Keyword(s):  
Prospect Theory ◽  
Mutual Funds ◽  
Mutual Fund ◽  
Future Research ◽  
Content Type ◽  
Financial Investment ◽  
Financial Products ◽  
Financial Planners ◽  
The Impact

PurposeThe purpose of this paper is to explore how heuristics are formed and whether herding and prospect theory act as antecedents to heuristics. The relationship is explored specifically for millennials.Design/methodology/approachThe proposed relationship is explored specifically for millennials. Herding and prospect theory are modelled as antecedents to heuristics. The study uses survey data from 923 millennials from India to test the model for two financial products: equity and mutual funds. Regression analysis is used to evaluate the model.FindingsFindings support the role of herding and prospect theory as antecedents to heuristics of millennials although to varying degrees for equity and mutual fund investments. The impact of herding on heuristics is likely to be smaller for equity investments as compared to mutual fund investments.Research limitations/implicationsThe findings provide insights into how heuristics are formed for millennials. The findings add to literature by beginning a new line of inquiry on how heuristics are formed. Since the model is tested on a single generation, future research can test the model on other generations. In addition, future research can also add more antecedents to our proposed model.Practical implicationsFindings from this study can provide financial planners and marketers with an understanding of how heuristics are formed for millennials. Financial planners can use these insights while providing financial advice to this generation and marketers can use them to create more relevant outreach.Social implicationsFinancial investments are an important conduit for financial security. By understanding the cognitive processes that influence financial investment decision-making, it is possible for educators to create content appropriately and for financial planners to advise clients accordingly to enable optimal financial decisions that will be wealth-creating.Originality/valueExisting literature primarily treats heuristics, herding and prospect theory as being independent of each other. The authors take a novel approach to model the antecedents to heuristics to be herding and prospect theory. The model is tested on millennials for two financial products: equity and mutual funds.

Transnationality in the XXI century. Concept and indicators

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Grazia Ietto-Gillies
Keyword(s):  
Structural Changes ◽  
Transnational Corporation ◽  
First Century ◽  
Future Research ◽  
Content Type ◽  
Low Degree ◽  
Fixed Assets ◽  
Inclusive Concept ◽  
The Impact

Purpose The purpose of this paper is to analyse the impact of major structural changes on the conceptualization of the transnational corporation (TNC) based on foreign direct investment (FDI) and on indicators of transnationality. Design/methodology/approach Analysis of three major structural changes which impact the current conception of transnationality. They are: the rise of digital companies; the increased role of finance in the economy; externalization of activities via non-equity modalities (NEMs) with an impact on FDI and on the labour market. Findings The paper finds that the current concept of transnationality needs widening to take account of companies with a low degree of fixed assets abroad such as the digital and the financial companies and those internationalizing via NEMs, as well as to take account of the evolving relationship between TNCs and labour. Research limitations/implications Future research along the lines proposed should consider: working explicitly with the new, inclusive concept of transnationality and arrive at an empirical estimate of the proposed indices of transnationality which modify and amplify the current United Nations Conference on Trade and Development indices. Social implications Useful for understanding the nature of transnationality in the twenty-first century and for developing policies. Originality/value The paper proposes a new concept of transnationality and of the TNC, one that allows for new ways of organizing direct business activities abroad. It also proposes broadening the list of indicators of transnationality.

Social capital in the theory and research of LIS professionals in the light of the literature on the subject. Review of current knowledge

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maja Dorota Wojciechowska
Keyword(s):  
Social Capital ◽  
Current Knowledge ◽  
Future Research ◽  
Content Type ◽  
Individual Social Capital ◽  
Rural Libraries ◽  
The Subject ◽  
The Moment ◽  
The Impact

Purpose The purpose of the paper is to present the latest scholarly trends in the field of social capital in libraries, to review research concepts published by LIS professionals and to suggest further research possibilities in this area. Design/methodology/approach This paper presents a review and critical analysis of literature associated with research on social capital in libraries to highlight its importance for the development of LIS and its impact on the functioning of environments linked with various types of libraries. The goal of literature analysis was to determine the current condition of research on social capital in libraries. The main trends were identified and the need for further qualitative analyses, which are missing at the moment, was confirmed. Findings It was determined that, so far, LIS professionals have focussed mainly on the role of municipal libraries in developing social capital, the problem of building trust, especially in immigrant circles and the impact of libraries on promoting a civil society. Academic libraries, rural libraries, organisational capital in libraries and individual social capital of librarians were a much less frequent subject of research. The role of libraries in developing social capital in educational (primary and secondary education) and professional (non-university professionals) circles is practically non-existent in research, and it will require in-depth studies and analyses in the coming years. Originality/value This paper constitutes a synthetic review of the latest research concepts concerning social capital in libraries. It identifies the most important research trends and areas that so far have not been explored and suggests research methods to help LIS professionals design future research in this area more effectively.

A study of prominence for disposition effect: a systematic review

2019 ◽  
Vol 11 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Syed Aliya Zahera ◽  
Rohit Bansal
Keyword(s):  
Mutual Funds ◽  
Behavioral Finance ◽  
Mutual Fund ◽  
Institutional Investors ◽  
Disposition Effect ◽  
Individual Investors ◽  
Content Type ◽  
Experimental Market ◽  
The Individual ◽  
The Impact

Purpose The purpose of this paper is to study the disposition effect that is exhibited by the investors through the review of research articles in the area of behavioral finance. When the investors are hesitant to realize the losses and quick to realize the gains, this phenomenon is known as the disposition effect. This paper explains various theories, which have been evolved over the years that has explained the phenomenon of disposition effect. It includes the behavior of individual investors, institutional investors and mutual fund managers. Design/methodology/approach The authors have used the existing literatures from the various authors, who have studied the disposition effect in either real market or the experimental market. This paper includes literature over a period of 40 years, that is, Dyl, 1977, in the form of tax loss selling, to the most recent paper, Surya et al. (2017). Some authors have used the PGR-PLR ratio for calculating the disposition effect in their study. However, some authors have used t-test, ANNOVA, Correlation coefficient, Standard deviation, Regression, etc., as a tool to find the presence of disposition effect. Findings The effect of disposition can be changed for different types of individual investors, institutional investors and mutual funds. The individual investors are largely prone to the disposition effect and the demographic variables like age, gender, experience, investor sophistication also impact the occurrence of the disposition effect. On the other side, the institutional investors and mutual funds managers may or may not be affected by the disposition effect. Practical implications The skilled understanding of the disposition effect will help the investors, financial institutions and policy-makers to reduce the adverse effect of this bias in the stock market. This paper contributes a detailed explanation of disposition effect and its impacts on the investors. The study of disposition effect has been found to be insufficient in the context of Indian capital market. Social implications The investors and society at large can gains insights about causes and influences of disposition effect which will be helpful to create sound investment decisions. Originality/value This paper has complied the 11 causes for the occurrence of disposition effect that are found by the different authors. The paper also highlights the impact of the disposition effect in the decision-making of various investors.

Colombia: innovation, trust and emotions during the COVID-19 pandemic

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alexander Varón Sandoval ◽  
Mónica Bibiana González Calixto ◽  
María del Pilar Ramírez Salazar
Keyword(s):  
Positive Emotions ◽  
Future Research ◽  
Content Type ◽  
The Public ◽  
The Awakening ◽  
Role Of The State ◽  
Collaborative Innovation ◽  
Qualitative Descriptive ◽  
The Impact

Purpose The purpose of this study is to reflect on some actions carried out in Colombia, both at the governmental and organizational levels, that can be considered collaborative innovations and that have emerged within this pandemic context seeking to generate an increase in trust and the awakening of others’ emotions, as well as manifestations or expressions of trust and emotions by the population. Design/methodology/approach Through a qualitative descriptive study, innovation strategies applied by different sectors to address the current situation of preventive isolation are identified, with the subsequent identification of manifestations resulting from the execution of the strategies and analyzes of the implications in terms of emotions and confidence as research constructs. Findings Actions taken by the public administration, instead of generating trust and instilling positive emotions, have generated the opposite and there is evidence of greater acceptance of actions when they come from the general population through strategies that can be assimilated into the application of open collaborative innovation. Originality/value This study raises future research challenges, in addition to the practical implications that it may have in terms of the vision of the role of the state and citizens and the impact of administrative decisions regarding the generation of trust and the presence of positive emotions in a crisis context.

scholarly journals The impact of country-level and fund-level factors on mutual fund performance in Vietnam

2019 ◽  
Vol 21 (1) ◽  
pp. 42-56
Author(s):  
Hoa Thi Nguyen ◽  
Dung Thi Nguyet Nguyen
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Investment Decision ◽  
Political Stability ◽  
Fund Performance ◽  
Data Set ◽  
Policy Makers ◽  
Content Type ◽  
Country Level ◽  
The Impact

Purpose The purpose of this paper is to examine the determinants of mutual funds’ performance at both a country level and a fund level in Vietnam. Design/methodology/approach The different types of funds with more than three-year operation are selected to remove outliers of the stock market boom from 2015 to 2018. The data set includes 54 mutual funds operating during the period from 2008 until November 2018. Findings The research finds that there is a positive relationship between macroeconomics and mutual funds’ performance. Furthermore, country-level governance such as regulation effectiveness, political stability, economic growth and financial development has a positive correlation with mutual funds’ performance. However, the impact of fund-level factors is diverse with the no significant impact of board size on mutual fund’s performance, while passive funds perform better than active funds in Vietnam. Practical implications The research results suggest that investors should pay attention to the types of funds and operating expense when making an investment decision in mutual funds. There are some recommendations for both government policy-makers and the mutual fund industry that are likely to facilitate the development of this field in Vietnam. Originality/value The research contributes to the understanding of what are the factors that should be considered when investing in mutual funds.

Spiritual quotient towards organizational sustainability: the Islamic perspective

2017 ◽  
Vol 13 (2) ◽  
pp. 163-170 ◽  
Author(s):  
Sohail Akhtar ◽  
Mohd Anuar Arshad ◽  
Arshad Mahmood ◽  
Adeel Ahmed
Keyword(s):  
Design Methodology ◽  
Well Being ◽  
Future Research ◽  
Organizational Sustainability ◽  
Content Type ◽  
Spiritual Awareness ◽  
Islamic Perspective ◽  
Conceptual Paper ◽  
The Impact

Purpose The purpose of this paper is to explore the impact of spiritual quotient (SQ) on the organisational sustainability from the Islamic perspective. Till date, many organisations around the world are facing environmental, social and economic issues affecting their organisational sustainability. Design/methodology/approach The present paper is conceptual paper based on literature review on employee’s behavioural issues and role of SQ for organisational sustainability. Findings This present paper argues that SQ must be considered as the important factor for employee development in the organisation. It develops spiritual awareness among employees which enhances their productivity within the organisation. Furthermore, SQ is necessary means of identifying and harnessing deeper inner resources with the capacity to care for the well-being of the organisation and advance its development. Research limitations/implications The paper suggests SQ and its multi-dimensions with the implication for future research in organisational sustainability. Originality/value The paper discusses the development of the concept of SQ from the Islamic perspective.

scholarly journals The role of career shocks in contemporary career development: key challenges and ways forward

2021 ◽  
Vol 26 (4) ◽  
pp. 453-466
Author(s):  
Jos Akkermans ◽  
Ricardo Rodrigues ◽  
Stefan T. Mol ◽  
Scott E. Seibert ◽  
Svetlana N. Khapova
Keyword(s):  
Career Development ◽  
Lessons Learned ◽  
Future Research ◽  
Special Issue ◽  
Content Type ◽  
Future Research Agenda ◽  
Current State ◽  
Conceptual Clarity ◽  
The Impact

PurposeThis article aims to introduce the special issue entitled “the role of career shocks in contemporary career development,” synthesize key contributions and formulate a future research agenda.Design/methodology/approachThe authors provide an introduction of the current state-of-the-art in career shocks research, offer an overview of the key lessons learned from the special issue and present several important avenues for future research.FindingsThe authors discuss how the special issue articles contribute to a better understanding of career shocks' role in contemporary career development, focusing on (1) conceptual clarity of the notion of career shocks, (2) career outcomes of career shocks, (3) mechanisms that can explain the impact of career shocks and (4) interdisciplinary connectivity.Originality/valueThis article offers a synthesis of the critical contributions made within this special issue, thereby formulating key ways to bring the field of career shocks research forward. It also provides new avenues for research.

Professionalization in Asia – whence and whither

2019 ◽  
Vol 32 (8) ◽  
pp. 2253-2281 ◽  
Author(s):  
Wai Fong Chua ◽  
Maria Cadiz Dyball ◽  
Helen Yee
Keyword(s):  
Research Articles ◽  
Future Research ◽  
State Agencies ◽  
Special Issue ◽  
Accounting Firms ◽  
Content Type ◽  
Asian State ◽  
The Impact ◽  
Published Research

Purpose The purpose of this paper is twofold: first, to assess the impact of the 1999 Special Issue on Professionalization in Asia in the Accounting, Auditing and Accountability Journal (AAAJ); and second, more generally to review research on this topic post-1999. Design/methodology/approach The paper starts with a discussion of the research articles of the Special Issue. It then identifies research that has cited papers in the Special Issue and which focusses on professionalization in Asia to identify relevant subsequent research. In addition, a literature search is conducted to locate post-1999 work that has not cited papers from the Special Issue but has investigated the same topic area. Analyzing both sets of work enables an integrated review of the field and aids the identification of future research opportunities. The study covers published research articles and books on professionalization projects in Asia from 1999 to 2018. In this paper, reference to Asia focusses on East Asia (including countries such as China and Japan), South Asia (including countries such as Bangladesh, India and Sri Lanka), and South East Asia (including countries such as Brunei, Cambodia, Indonesia, Malaysia, the Philippines and Vietnam). Given the elapsed time of near 20 years, there has been sufficient time for research to be published. Therefore, the review focusses on published output only and does not discuss unpublished theses, conference proceedings nor working papers. Findings First, the Special Issue of AAAJ in 1999 generally adopted a critical lens and studied professionalization as projects of market closure and collective mobility. The corporatist framework of Puxty et al. (1987) provided a useful framing to analyze the influence of states, markets and communities on professionalization. Second, the Special Issue has helped to spur interest in understanding professionalization in the region. Post-1999, there are studies of countries not covered in the Special Issue. Third, the themes identified in the Special Issue continue to be relevant and are examined in post-1999 work: the active role of the state, the legacies of colonization, the activities of transnational accounting bodies; and to a lesser degree, the influence of transnational accounting firms. Finally, future research could usefully focus on: the distinctive and more expansive role of Asian state agencies; the conduct of deeper comparative research; the role of accounting firms in the region; and the impact of transnational agencies such as the International Federation of Accountants and the World Bank. Research limitations/implications There are three limitations. First, the review of literature omits unpublished research such as PhD theses and working papers. Second, it focusses only on research published in English. As a result, some work may be excluded. Third, it assesses the contribution of a single issue (i.e. the 1999 AAAJ Special Issue) and does not discuss work that preceded 1999. Originality/value This paper is aimed at assessing the impact of the 1999 Special Issue but also presents a wide-ranging analytical review of published research on accounting professionalization in Asia since 1999. The paper identifies several areas for future research and proposes a modified model of state-market-community-profession relations. In particular, the paper emphasizes the large and distinctive roles of Asian state agencies and the activities of transnational actors (both those within the profession as well as those that are external).

Unraveling the complex nexus of punitive supervision and deviant work behaviors: findings and implications from hospitality employees in Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aisha Sarwar ◽  
Lakhi Muhammad ◽  
Marianna Sigala
Keyword(s):  
Explanatory Power ◽  
Work Behavior ◽  
Future Research ◽  
Cognitive Mechanisms ◽  
Theoretical Understanding ◽  
Content Type ◽  
Deviant Behaviors ◽  
The Impact ◽  
Moderating Role

Purpose The study adopts the conservation of resources (COR) theory for providing a better theoretical understanding of punitive supervision as an antecedent of employees’ minor deviant behaviors (namely, employee time theft and knowledge hiding) via creating cognitive mechanisms (employees’ perceived incivility). The purpose of this paper is to examine the moderating role of employees’ RESILIENCY on employees’ ability to buffer the impacts of punitive supervision. Design/methodology/approach Data was gathered from 265 frontline hospitality employees in Pakistan. A survey was administered in person to establish trust and rapport with employees and so, collect reliable data. Findings The findings confirmed a direct and mediated impact of punitive supervision on employee minor deviant behaviors via creating perceived incivility. The moderating role of employees’ resiliency was also confirmed, as the employees’ resiliency helped them mitigate the impact of punitive supervision on perceived incivility. Research limitations/implications Data was collected from employees’ perceptions working in one industry and cultural setting. As employees’ perceptions (influenced by their cultural background) significantly affect their interpretations and reactions to punitive behavior, future research should validate and refine the findings by collecting data from a wider and diversified cultural and industry setting. Practical implications The findings provide theoretical explanatory power of the drivers and the contextual factors leading to minor employee deviant behaviors. The findings guide managers on how to develop pro-active and re-active strategies for deterring the occurrence and eliminating the consequences of punitive supervision. Originality/value This study contributes to the literature in multiple ways. It identifies and validates punitive supervision as an antecedent of Deviant Work Behavior (DWB). It provides a theoretical underpinning for explaining how punitive supervision spurs cognitive mechanisms, which in turn drive DWB. It also studies the nexus between destructive supervision and its outcomes in its entirety by studying the mediated and the moderating impacts of punitive supervision and perceived incivility, respectively.

scholarly journals Investor confidence and mutual fund performance in emerging markets

2018 ◽  
Vol 45 (6) ◽  
pp. 1288-1310 ◽  
Author(s):  
Ann-Ngoc Nguyen ◽  
Muhammad Sadiq Shahid ◽  
David Kernohan
Keyword(s):  
Emerging Markets ◽  
Mutual Funds ◽  
Mutual Fund ◽  
Unobserved Heterogeneity ◽  
Generalized Method Of Moments ◽  
Fund Performance ◽  
Mutual Fund Performance ◽  
Content Type ◽  
Investor Confidence ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of investor confidence on mutual fund performance in two relatively vulnerable but leading emerging markets, India and Pakistan. Design/methodology/approach A pooled ordinary least squared (OLS) model is used to look at two alternative measures of investor confidence and test for the relationship between investor confidence and mutual fund returns. To check the robustness of the findings, the authors also implement two-stage least squares and generalized method of moments techniques to control for unobserved heterogeneity, simultaneity and dynamic endogeneity problems in the regressors. Findings The paper finds that the returns of mutual funds are positively associated with investor confidence and an interaction effect exists between investor confidence and persistence in performance. The paper also confirms that returns from mutual funds are associated with different fund characteristics such as fund size, turnover, expense, liquidity, performance persistence and the fund’s age. These findings remain robust to alternative model specifications and measures of investor confidence. Originality/value While the previous literature mainly focuses on mutual fund characteristics and the macroeconomic determinants of mutual fund returns, this paper demonstrates that investor confidence plays an important role in determining mutual fund performance. The authors attribute this finding to two relatively unique features of the emerging markets in the study. A lack of awareness of mutual funds as being a low-cost investment vehicle and the interplay of cultural and behavioral changes have prevented investor’s savings from being channeled into investment products, away from gold or property.

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