scholarly journals Macedonian Small Investors’ Behavior Towards Stock Market

2015 ◽  
Vol 18 (1) ◽  
pp. 51-60 ◽  
Author(s):  
Julijana Angelovska
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Behavioral Finance ◽  
Behavioral Approach ◽  
Sample Survey ◽  
Convenience Sample ◽  
Rules Of Thumb ◽  
Small Investors ◽  
Stock Market Investors ◽  
Regret Aversion

Abstract Convenience sample survey was fielded to the Macedonian individual stock market investors to find out whether their investment behavior can be explained by some underlying factors grounded in the behavioral approach to the study of financial markets. Descriptive statistics technique has been used to analyze the investors’ attitude about the market’s efficiency and to test different theories of behavioral finance. The results have indicated that investors are not completely rational individuals as supposed by theories of traditional finance. Also in the theoretical framework of behavioral finance Macedonian investors use heuristics, or rules of thumb, when judging information and forming beliefs, but Macedonian investors do not behave as suggested within prospect theory and regret aversion.

scholarly journals Could Mergers Become More Sustainable? A Study of the Stock Exchange Mergers of NASDAQ and OMX

2020 ◽  
Vol 12 (20) ◽  
pp. 8581
Author(s):  
Wenjing Xie ◽  
João Paulo Vieito ◽  
Ephraim Clark ◽  
Wing-Keung Wong
Keyword(s):  
Sustainable Development ◽  
Stock Market ◽  
Financial Markets ◽  
Stock Markets ◽  
Stock Exchange ◽  
International Treaties ◽  
National Policies ◽  
The Sustainable Development ◽  
Long Run ◽  
Stock Market Investors

This study investigates whether the merger of NASDAQ and OMX could reduce the portfolio diversification possibilities for stock market investors and whether it is necessary to implement national policies and international treaties for the sustainable development of financial markets. Our study is very important because some players in the stock markets have not yet realized that stock exchanges, during the last decades, have moved from government-owned or mutually-owned organizations to private companies, and, with several mergers having occurred, the market is tending gradually to behave like a monopoly. From our analysis, we conclude that increased volatility and reduced diversification opportunities are the results of an increase in the long-run comovement between each pair of indices in Nordic and Baltic stock markets (Denmark, Sweden, Finland, Estonia, Latvia, and Lithuania) and NASDAQ after the merger. We also find that the merger tends to improve the error-correction mechanism for NASDAQ so that it Granger-causes OMX, but OMX loses predictive power on NASDAQ after the merger. We conclude that the merger of NASDAQ and OMX reduces the diversification possibilities for stock market investors and our findings provide evidence to support the argument that it is important to implement national policies and international treaties for the sustainable development of financial markets.

scholarly journals The stock market as a casino: Associations between costly excessive stock market trading and problem gambling

2021 ◽  
Author(s):  
Moritz Mosenhauer ◽  
Philip Warren Stirling Newall ◽  
Lukasz Walasek
Keyword(s):  
Stock Market ◽  
Problem Gambling ◽  
Behavioral Finance ◽  
Financial Literacy ◽  
Stock Trading ◽  
Convenience Sample ◽  
Problem Gamblers ◽  
Stock Portfolio ◽  
Stock Market Trading ◽  
Financial Losses

The stock market should be a unique kind of casino, where the average person wins money over time. However, previous research shows that excessive stock market trading can contribute to financial losses --- just like in any other casino. While gambling research has documented the adverse consequences of problem gambling, there has been comparatively less behavioral finance research on the correlates of excessive stock market trading. This study aimed to document whether excessive stock trading was positively associated with problem gambling, and whether this hypothesized association was robust to controlling for demographics, and objective measures of overconfidence and financial literacy in a convenience sample of 798 US investors. We found that self-reported relative stock portfolio turnover was positively associated with problem gambling, that this association was robust to controls, and occurred equally over investors of all self-reported portfolio sizes. This study showed that problem gamblers may also make suboptimal risky choices more generally, and that a behavioral dependence explanation for suboptimal investment decisions should be subject to further investigation in the behavioral finance literature.

FINANCIAL MARKETS EFFICIENCY(NOBEL MEMORIAL PRIZE IN ECONOMICS 2013)

2014 ◽  
pp. 4-21
Author(s):  
R. Sverchkov ◽  
K. Sonin
Keyword(s):  
Asset Pricing ◽  
Stock Market ◽  
Financial Markets ◽  
Nobel Prize ◽  
Behavioral Finance ◽  
Pricing Models ◽  
Asset Pricing Models ◽  
Short And Long Term ◽  
Russian Stock Market

The paper describes the main contributions of the 2013 Nobel Prize winners in economics E. Fama, R. Shiller and L.-P. Hansen in the analysis of the financial markets efficiency. Discussed are the very idea of the impossibility to systematically gain riskless profits in the short- and long-term perspectives, the fomalizations of this idea in the key asset pricing models, methods of testing these models, and the theory of behavioral finance as one of the explanations of the inefficiency and irrationality of financial markets. A short overview of the research dealing with the efficiency of Russian stock market is also given.

scholarly journals INVESTOR EXPERTISE AND THE RATIONALITY OF DECISION MAKING

2015 ◽  
Vol 1 (310) ◽  
Author(s):  
Marcin Rzeszutek ◽  
Monika Czerwonka ◽  
Magdalena Walczak
Keyword(s):  
Decision Making ◽  
Stock Market ◽  
Behavioral Finance ◽  
Point Of View ◽  
Decision Making Process ◽  
Exploratory Research ◽  
Behavioral Biases ◽  
Stock Market Investors

The aim of the paper is to is to explore the determinants of the rationality in decision making among polish stock market investors with different level of expertise with investing. Rationality in decision making was defined from the behavioral finance point of view and was operationalized as the frequency of some behavioral biases (see: the certainty effect) within decision making process. In particular, this study aims to investigate the degree of susceptibility the certainty effect among people of various levels of expertise with investing. As  there is still a lack of data studies in behavioral finance literature investigating the issues mentioned in this article (or existing results are ambiguous) we treated our study as an exploratory research.

scholarly journals Day-of-the-Week Effect among the Smallest Enterprises Listed on WSE

e-Finanse ◽  
2015 ◽  
Vol 11 (3) ◽  
pp. 92-102
Author(s):  
Jakub Keller
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Behavioral Finance ◽  
Stock Exchange ◽  
Small Companies ◽  
Calendar Effects ◽  
Behavioral Theories ◽  
The Subject ◽  
Day Of The Week

Abstract The text touches on the subject of the financial markets in the context of behavioral theories. The author attempts to verify the occurrence of one of the popular calendar effects, the day-of-the- -week effect, on the Polish stock market. Another limitation of the study area of the research is to include in the analysis only small companies. Many voices from the mainstream of behavioral finance say that the presence of anomalies listed is more evident in the case of small companies, which are not the focus of the majority of investors. In the proposed study, the data used contained companies in the Stock Exchange in Warsaw, with a maximum capitalization of 10 million PLN. Research sample includes quotations of these companies during the period January 2010-April 2014. In order to verify the hypothesis of the occurrence of the day-of-the-week effect among these companies the author used ARCH modeling. In the course of the analysis the author verified negatively the occurrence of the effect of weekdays in the proposed research sample.

scholarly journals Укључивање акција у индекс // Inclusion of stocks in the index

2013 ◽  
Vol 11 (18) ◽  
pp. 51
Author(s):  
Натко Благојевић ◽  
Силвије Орсаг
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Behavioral Finance ◽  
Capital Market ◽  
Stock Price ◽  
Stock Market Index ◽  
Index Funds ◽  
Market Index ◽  
Significant Change ◽  
Trading Volumes

Резиме: Уврштавање у индекс једна је од техничких аномалија у фокусу бихевиористичких финансија која се не може објаснити са становишта традиционалних финансија. Полазећи од глобализације свјетских финансијских тржишта и чињенице да је хрватско тржиште капитала значајно интегрисано с развијеним европским тржиштима капитала, истражили смо постојање значајних промјена цијена акција након њиховог уврштавања у индекс Crobex. Као резултат проведених истраживања, уочили смо значајне промјене цијена акција узроковане њиховим уврштењем у индекс тржишта акција, без значајније промјене обима трговања у ситуацији гдје нема индексних фондова специјализованих за инвестирање у Crobex и гдје је укључивање транспарентно и аутономно од дискреционих одлука.Summary: Index inclusion is one of a technical anomaly in the focus of behavioral finance which cannot be explained from the viewpoint of traditional finance. Starting from globalization of world financial markets and the fact that Croatian capital market is well integrated within developed European capital markets we are investigate existence of significant changes in prices of stock after theirs inclusion in index Crobex . As result of performing researches we find significant change in stock price caused by theirs including in stock market index without significant change in theirs trading volumes in situation where are no index funds specialized for investing in Crobex and where inclusion is transparent and autonomous from discreet decisions.

Impact of FII’s and FDI’s on Indian Stock Market

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Dr. Kamlesh Kumar Shukla
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Global Economy ◽  
Short Term ◽  
Earnings Growth ◽  
The Past ◽  
Bull Market ◽  
Indian Stock Market

FIIs are companies registered outside India. In the past four years there has been more than $41 trillion worth of FII funds invested in India. This has been one of the major reasons on the bull market witnessing unprecedented growth with the BSE Sensex rising 221% in absolute terms in this span. The present downfall of the market too is influenced as these FIIs are taking out some of their invested money. Though there is a lot of value in this market and fundamentally there is a lot of upside in it. For long-term value investors, there’s little because for worry but short term traders are adversely getting affected by the role of FIIs are playing at the present. Investors should not panic and should remain invested in sectors where underlying earnings growth has little to do with financial markets or global economy.

Sign in / Sign up

Export Citation Format

Share Document