Determinants Influencing Individual Investor Behavior in Stock Market : A Cross Country Research Survey

Purpose This research aims to investigate whether and to what extent the co-movements of cross-country business cycles, cross-country stock market cycles and cross-country real estate market cycles are linked across G7 from February 1990 to June 2014. Design/methodology/approach The empirical approaches include correlation analysis on Hodrick–Prescott (HP) cycles, HP cycle return spillovers effects using Diebold and Yilmaz’s (2012) spillover index methodology, as well as Croux et al.’s (2001) dynamic correlation and cohesion methodology. Findings There are fairly strong cycle-return spillover effects between the cross-country business cycles, cross-country stock market cycles and cross-country real estate market cycles. The interactions among the cross-country business cycles, cross-country stock market cycles and cross-country real estate market cycles in G7 are less positively pronounced or exhibit counter-cyclical behavior at the traditional business cycle (medium-term) frequency band when “pure” stock market cycles are considered. Research limitations/implications The research is subject to the usual limitations concerning empirical research. Practical implications This study finds that real estate is an important factor in influencing the degree and behavior of the relationship between cross-country business cycles and cross-country stock market cycles in G7. It provides important empirical insights for portfolio investors to understand and forecast the differential benefits and pitfalls of portfolio diversification in the long-, medium- and short-cycle horizons, as well as for research studying the linkages between the real economy and financial sectors. Originality/value In adding to the existing body of knowledge concerning economic globalization and financial market interdependence, this study evaluates the linkages between business cycles, stock market cycles and public real estate market cycles cross G7 and adds to the academic real estate literature. Because public real estate market is a subset of stock market, our approach is to use an original stock market index, as well as a “pure” stock market index (with the influence of real estate market removed) to offer additional empirical insights from two key complementary perspectives.

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The Influence of Financial Development on R&D Activity: Cross-Country Evidence

Review of Pacific Basin Financial Markets and Policies ◽

10.1142/s0219091510001998 ◽

2010 ◽

Vol 13 (03) ◽

pp. 381-401 ◽

Cited By ~ 7

Author(s):

Young-Soon Hwang ◽

Hong-Ghi Min ◽

Seung-Hun Han

Keyword(s):

Stock Market ◽

Banking Sector ◽

Finance Industry ◽

Turnover Ratio ◽

Environment Variables ◽

Financial Quality ◽

Efficient Resource ◽

Cross Country ◽

The Relationship ◽

Financial Environment

The financial environment affects the level of R&D activity of a country. Using the proxy measures of macroeconomic financial environment variables, we show that cross-country differences in R&D activity, including expenditures, researchers, and patents etc., are correlated with the stock market turnover ratio. In particular, we found that the relationship was in direct relation to R&D expenditures or the number of researchers but indirect in relation to R&D outputs such as patents. These results imply that finance structure of an economy could enhance R&D activity through providing efficient resource allocation function. Other proxy measures of the financial environment such as banking sector size or stock market capitalization are not found to be significant. The size of the finance industry does not seem to change the national portfolio toward more high-risk innovative sectors. Financial quality, not size, determines the level of R&D intensity.

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The Effect of Monetary Policy on Monthly and Quarterly Stock Market Returns : Cross-Country Evidence and Sensitivity Analyses

Finance and Economics Discussion Series ◽

10.17016/feds.2001.42 ◽

2001 ◽

Vol 2001 (42) ◽

pp. 1-41 ◽

Cited By ~ 1

Author(s):

J. B. Durham ◽

Keyword(s):

Monetary Policy ◽

Stock Market ◽

Sensitivity Analyses ◽

Market Returns ◽

Stock Market Returns ◽

Cross Country ◽

Effect Of Monetary Policy

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Impact of Gender Differences on Individual Investor Behavior

Beytulhikme An International Journal of Philosophy ◽

10.18491/beytulhikme.1703 ◽

2021 ◽

Vol 11 (11:4) ◽

pp. 1567-1593

Author(s):

Seema Rehman

Keyword(s):

Gender Differences ◽

Investor Behavior ◽

Individual Investor

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Factors influencing investor behavior: an empirical study of Saudi Stock Market

International Journal of Social Economics ◽

10.1108/ijse-07-2020-0496 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Muhammad Junaid Khawaja ◽

Zainab Nasser Alharbi

Keyword(s):

Saudi Arabia ◽

Stock Market ◽

Individual Characteristics ◽

Investor Behavior ◽

Social Implications ◽

Primary Data ◽

Past Performance ◽

Content Type ◽

Factors Influencing ◽

The Government

PurposeThe objective of the study is to determine the factors influencing the behavior of investor in Saudi Stock Market.Design/methodology/approachThe paper uses correlation analysis, factor analysis, reliability and multiple regression analysis on the primary data collected from 125 investors in Saudi Stock Market through a questionnaire distributed randomly.FindingsThe results indicate that the factors like past performance of the stocks, financial statements, firm status in industry, the reputation of the firm, and expected corporate earnings have significant influence on the behavior of investors. The factor of the image that a certain company has built for itself over the years on the basis of its financial practices is a large influencer of investor decisions as compared to advocate recommendation factors. The investment behavior is not significantly influenced by gender or age; however, it is significantly influenced by educational qualification, professional experience and investment volume.Research limitations/implicationsThis paper limits itself to study the factors that influence the behavior of investors. However, it does not address the issue of investor overconfidence and its implications for Saudi Stock Market.Practical implicationsThis research provides a road map for the investors interested in making their investment decisions by understanding the most influencing factors.Social implicationsThis research has social implications for government agencies to delineate the required legislation to regulate the investors and also to increase market efficiency. The results show that investors are strongly affected by signals from the government.Originality/valueThis research is an original contribution toward the behavioral finance field in Saudi Arabia and can be used as a reference material for investors, companies and government policymakers in Saudi Arabia. This study incorporates investors' individual characteristics and explores factors that influence investor behavior unlike some previous studies using Saudi data.

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