Does Gender and Family Income Impact Stock Trading of B-School Students? Findings from a Stock Simulation Exercise

2021 ◽  
pp. 097226292199259
Author(s):  
Nisha Prakash ◽  
Subburaj Alagarsamy
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Portfolio Management ◽  
Family Income ◽  
Primary Objective ◽  
Female Students ◽  
Stock Selection ◽  
School Students ◽  
Stock Trading ◽  
Simulation Exercise

Educators across the globe utilize online stock market simulation games to introduce students to trading in the stock market. The primary objective of the simulation exercise is to expose students to the practical application of financial theories on fundamental analysis, stock selection, building an optimal portfolio, monitoring the risk-return characteristics and continuously improving the portfolio based on changing realities. This article utilizes the trading data from a simulation exercise conducted by a leading B-school in India. The exercise was conducted as part of Security Analysis and Portfolio Management (SAPM) course offered by the B-school. The objective of the article is to understand the role of gender and family income in the trading patterns of students in the simulation exercise. The article covers 163 students who were part of the simulation exercise in 2019. The results indicate that male students trade more aggressively than female students, both in terms of number of trades and the number of companies traded. However, the female students reported higher stock trading performance, measured in stock returns. This is observed to be true at all the quartiles, with the largest magnitude of the difference in the mid-quartiles. The study also indicates that the students from wealthier families perform better than those from poorer backgrounds. However, family income is an insignificant differentiating factor. Further, regression analysis indicates that gender is a significant determinant of stock returns. Based on these findings, the authors argue that gender has a significant role in the stock trading performance of B-schoolers. The article contributes to the field of behavioural finance, especially on the literature of gender and performance in financial markets.

Can Twitter Help Predict Firm-Level Earnings and Stock Returns?

2017 ◽  
Vol 93 (3) ◽  
pp. 25-57 ◽  
Author(s):  
Eli Bartov ◽  
Lucile Faurel ◽  
Partha S. Mohanram
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Future Prospects ◽  
Traditional Media ◽  
Stock Trading ◽  
Firm Level ◽  
Quarterly Earnings ◽  
Announcement Returns ◽  
Twitter Activity ◽  
Original Information

ABSTRACT Prior research has examined how companies exploit Twitter in communicating with investors, and whether Twitter activity predicts the stock market as a whole. We test whether opinions of individuals tweeted just prior to a firm's earnings announcement predict its earnings and announcement returns. Using a broad sample from 2009 to 2012, we find that the aggregate opinion from individual tweets successfully predicts a firm's forthcoming quarterly earnings and announcement returns. These results hold for tweets that convey original information, as well as tweets that disseminate existing information, and are stronger for tweets providing information directly related to firm fundamentals and stock trading. Importantly, our results hold even after controlling for concurrent information or opinion from traditional media sources, and are stronger for firms in weaker information environments. Our findings highlight the importance of considering the aggregate opinion from individual tweets when assessing a stock's future prospects and value.

Performance and development of a thin stock market: the Stockholm Stock Exchange 1912–2017

2020 ◽  
pp. 1-19
Author(s):  
Kristian Rydqvist ◽  
Rong Guo
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Stock Selection ◽  
Data Set ◽  
Transaction Prices ◽  
Limit Orders ◽  
A Value

We estimate historical stock returns for Swedish listed companies in a newly constructed data set of daily stock prices that spans more than 100 years. Stock returns exhibit all the familiar characteristics. The growth of the public sector depressed the stock market, and the process of globalization revitalized it. Banks played an important role in the early development of the stock market. There was little trading in the past, and we examine the effects on return measurement from missing data. Stock selection and the replacement of missing transaction prices through search back procedures or limit orders make little difference to a value-weighted stock price index, while ignoring the price effects of capital operations makes a big difference.

scholarly journals Investors’ risk perception in the context of efficient market hypothesis: A conceptual framework for malaysian and indonesian stock exchange

2021 ◽  
Vol 124 ◽  
pp. 03002
Author(s):  
Syed Emad Azhar Ali ◽  
Fong-Woon Lai ◽  
Muhammad Kashif Shad
Keyword(s):  
Risk Perception ◽  
Market Efficiency ◽  
Stock Returns ◽  
Portfolio Management ◽  
Stock Exchange ◽  
Composite Index ◽  
Efficient Market Hypothesis ◽  
Primary Objective ◽  
Efficient Market ◽  
Share Prices

The advocates of the Efficient Market Hypothesis (EMH) theory postulates that share prices depict all the available information concerning its intrinsic worth. EMH espouses the Random Walk Theory i.e. future stock returns cannot be predicted based on past movement patterns. Contrary to that, there are believers of the Adaptive Market Hypothesis (AMH) who have questioned the adaptability of EMH and argues that market efficiency and investor’s risk perception varies across time, thus, stock returns can be predicted through active portfolio management. Various Studies have argued on market efficiency debate for developed markets, however, limited studies have examined the same for emerging markets such as Malaysia and Indonesia, which are most volatile among ASEAN-5 indices. Therefore, the primary objective of this study is to conceptualize the manifestation of efficient market hypothesis and investors’ risk perception in volatile markets of Malaysia (Kuala Lumpur Composite Index) and Indonesia (Jakarta Composite Index) by testing the 10 years (2010-2019) of daily, weekly and monthly data for the return predictability. The findings of this study will provide insight into stock market behavior to help investors to better strategize their portfolio investment positioning to reap the most efficient risk-based return.

Identity Exploration and Commitment of Albanian Youth as a Function of Social Opportunity Structure

2006 ◽  
Vol 11 (4) ◽  
pp. 268-276 ◽  
Author(s):  
Aida Orgocka ◽  
Jasna Jovanovic
Keyword(s):  
High School ◽  
High School Students ◽  
Identity Development ◽  
Youth Development ◽  
Female Students ◽  
Male Students ◽  
Opportunity Structure ◽  
School Students ◽  
Identity Exploration

This study examined how social opportunity structure influences identity exploration and commitment of Albanian high school students. A total of 258 students completed a questionnaire that gauged their identity exploration and commitment in three domains: education, occupation, and family. ANOVA results indicated that, overall, students scored highest in exploration in the domain of education and in commitment in the domain of family. Students' exploration and commitment were linked to gender. Albanian female students scored higher than male students in exploration and commitment regarding education and family. Perceived work opportunities in Albania or abroad also significantly moderated participants' exploration in the domain of education and were associated with commitment in education and occupation. As one of the first studies to explore Albanian youth's identity development in relation to social opportunity structure, findings are discussed in light of furthering the field of Albanian adolescent and youth development.

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