scholarly journals Economic Factors And Individual Investor Behavior: The Case Of The Greek Stock Exchange

2011 ◽  
Vol 20 (4) ◽  
Author(s):  
Anna A. Merikas ◽  
Andreas G. Merikas ◽  
George S. Vozikis ◽  
Dev Prasad
Keyword(s):  
Behavioral Finance ◽  
Stock Exchange ◽  
Investor Behavior ◽  
Economic Factors ◽  
Individual Investor ◽  
Font Size ◽  
Empirical Survey ◽  
Athens Stock Exchange ◽  
The Individual ◽  
Finance Theory

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">This study undertook an empirical survey of the factors, which mostly influence individual investor behavior in the Greek stock exchange.<strong> </strong>The results revealed by our sample of 150 respondents confirm that there seems to be a certain degree of correlation between the factors that behavioral finance theory and previous empirical evidence identify as the influencing factors for the average equity investor, and the individual behavior of active investors in the Athens Stock Exchange (ASE) influenced by the overall trends prevailing at the time of the survey in the ASE.</span></span></p>

Survey of Trading Systems for Individual Investors

2011 ◽  
pp. 157-176 ◽  
Author(s):  
M. Kersch ◽  
G. Schmidt
Keyword(s):  
Financial Markets ◽  
Stock Exchange ◽  
Point Of View ◽  
Individual Investors ◽  
Individual Investor ◽  
Trading System ◽  
Trading Systems ◽  
Trading Decisions ◽  
The Individual

Trading decisions in financial markets can be supported by the use of trading algorithms. To evaluate trading algorithms and to generate orders to be executed on the stock exchange trading systems are used. In this chapter, we define the individual investors’ requirements on a trading system, and analyze 17 trading systems from an individual investor’s point of view. The results of our study point out that the best alternative for an individual investor is not one single trading system, but a combination of two different classes of trading systems.

scholarly journals Behavioral finance: the analysis of investor behavior based on belief and feeling and the investor rationality towards LQ 45 stocks

2018 ◽  
Vol 15 (1) ◽  
pp. 292-298
Author(s):  
Etty Indriani ◽  
Cahyani Tunggal Sari
Keyword(s):  
Regression Analysis ◽  
High Risk ◽  
Behavioral Finance ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Low Risk ◽  
Investor Behavior ◽  
Average Return ◽  
High Return ◽  
The Relationship

This research analyzes behavioral finance, especially the behavior of investors in Yogyakarta, Indonesia Region. The performance of investor behavior is examined based on the LQ 45 stocks return on Indonesia Stock Exchange and questionnaires that are spread out to five securities agents in Yogyakarta.The performance of LQ 45 stocks return is compared to the questionnaire analysis in the “Belief” part at the first and second stages. The first result shows that LQ 45 stocks are profitable. It can be seen from the average return of the stocks that it has positive value and is statistically identical with the LQ 45 index return. This result is in line with the investors’ opinion that LQ 45 stocks are profitable. The second result shows that most of LQ 45 stocks are profitable and give high return. But, this result is also contrary to the opinion of investors towards traditional finance paradigm that investors still believe “high risk – high return, low risk – low return”. Although most of LQ 45 stocks are considered as low risk stocks, many investors prefer to choose LQ 45 stocks. It means that the traditional finance paradigm has weakness. It is proven that investors sometimes act irrationally.The third and fourth stages of the study are aimed to analyze the relationship between feeling and belief towards frequency of transaction each day based on the questionnaire using regression analysis. The result shows that there is significant relationship between feeling and frequency of transaction each day.

scholarly journals Informal interactions between audit committees and internal audit function. Evidence from Greek listed firms

2019 ◽  
Vol 15 (1) ◽  
pp. 25-32 ◽  
Author(s):  
George Drogalas ◽  
Alkiviadis Karagiorgos ◽  
Michail Pazarskis ◽  
Nikolaos Vagenas
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Internal Audit ◽  
Audit Committees ◽  
Listed Firms ◽  
Empirical Survey ◽  
Internal Audit Function ◽  
Athens Stock Exchange ◽  
The One

During the last decade, corporate irregularities created an unstable economic environment, which highlighted the importance of internal audit function (IAF) and audit committee (AC) in the context of corporate governance worldwide. However, a small number of researches have dealt with informal interactions between the audit committee and the internal audit function in Greek entities. In this context, this article investigates, on the one hand, the existence of informal interactions between the audit committee and the internal audit function, whereas on the other hand, it emphasizes on the determination of the factors associated with their existence. In particular, an empirical survey was conducted with the distribution of a questionnaire to Greek entities listed on the Athens Stock Exchange and a logistic regression analysis was used to illustrate the information gathered. This study indicates the existence and the factors influencing informal interactions between the audit committee and internal audit function in Greece. More particularly AC independence, AC chair characteristics and CAE characteristics (independent and objective) were found statistically significantly associated with the informal interaction between the two functions.

scholarly journals Factors influencing Individual Investor Behaviour: Evidence from the Kuwait Stock Exchange

2019 ◽  
Vol 15 (3) ◽  
pp. 27 ◽  
Author(s):  
Sadeq J. Abul
Keyword(s):  
Psychological Factors ◽  
Stock Exchange ◽  
Individual Investors ◽  
Individual Investor ◽  
Factors Influencing ◽  
Risk Appetite ◽  
Kuwait Stock Exchange ◽  
Herd Behaviour ◽  
Investor Behaviour ◽  
The Individual

This study investigates the effects of psychological factors on investor behaviour regarding the Kuwait Stock Exchange (KSE). These psychological factors are, namely: excessive optimism vs pessimism, herd behaviour and risk appetite. The data for this study obtained from KSE and a survey of a random sample of 398 individual investors. By using qualitative analysis and based on the theory of behavioural finance, the study findings show that herd behaviour, optimism and psychology risk have an impact on the individual investors’ decisions. However, we did not find any evidence of overconfidence behaviour’s effects on investors’ decisions. To our knowledge, KSE has been examined by several researchers without taking into consideration the effects of psychological factors on individual investor decisions. This study finds that psychological factors play a significant role in individual investors’ decisions regarding KSE. This study might contribute positively to the development of this field of research in (KSE).

scholarly journals Economy, psychology and stock investment: analysis of variables that participate in the process of decision making

2012 ◽  
Vol 5 (1) ◽  
pp. 5-17
Author(s):  
David Pascual Ezama ◽  
Beatriz Gil-Gómez De Liaño ◽  
Barbara Scandroglio
Keyword(s):  
Decision Making ◽  
Psychometric Properties ◽  
Stock Exchange ◽  
Investment Analysis ◽  
Investor Behavior ◽  
Individual Investors ◽  
Individual Investor ◽  
Stock Investment ◽  
Lack Of Information ◽  
The Relationship

The ININBE questionnaire has been recently validated in order to measure the variables that affect individual investor behavior in stock exchange. The lack of information about the methodology, items selection and psychometric properties of the instruments used in other researches has shown the necessary to elaborate and validate a questionnaire. In the present work we have applied the ININBE questionnaire to 257 individual investors. We have found interesting results about the relationship between the “psychological” and “economical” variables with individual investor’s characteristics.

scholarly journals Implementation of Fibonacci Retracements and Exponential Moving Average (EMA) Trading Strategy in Indonesia Stock Exchange

2021 ◽  
Vol 6 (4) ◽  
pp. 402-408
Author(s):  
Lusindah Lusindah ◽  
Erman Sumirat
Keyword(s):  
Stock Market ◽  
Stock Price ◽  
Stock Exchange ◽  
Moving Average ◽  
Time Frame ◽  
Trading Strategy ◽  
Individual Investors ◽  
Individual Investor ◽  
Back Testing ◽  
The Individual

Based on KSEI statistic data on March 2021, IDX individual stock market investor is increasing 199% compared to 2018 becoming 4,848,954 number of investors. 56.9% population of the individual investor is having ages that less than 30 years. In the period where IDX was bullish in November 2020 - January 2021, there is a phenomenon where stocks influencers appeared in social media and impacted to the stock price movement after the announcement is done by the influencer. In contrary, during bearish and sideways condition, those influencers were gone and changed with bad news that went viral where many individual investors are lost their capital in IDX. They lose money since they are gambling in the stock market without any analysis and no establishment of trading plan. This research is aimed as a strategy to individual investors in IDX to implement trading strategy based on Fibonacci retracements and projections, EMA lines, trendlines, stochastic, and volume. Back testing is conducted in IDX SMC Liquid index constituents during January 2018 until December 2020 period. By implementing this trading strategy, return generated is 164% for 3 years trading time frame. Author also found that this trading strategy is effective in bullish trend condition especially for individual investors that have long position.

scholarly journals Determinants of Investment Decisions: A Study of Individual Investors on the Zimbabwe Stock Exchange

2020 ◽  
Vol 7 (5) ◽  
pp. 38
Author(s):  
Peter Hunguru ◽  
Vusumuzi Sibanda ◽  
Ruramayi Tadu
Keyword(s):  
Decision Making ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Positive Association ◽  
Individual Investors ◽  
Individual Investor ◽  
Behavioural Factors ◽  
The Individual ◽  
Regret Aversion

This study investigated factors that inform individual investors in their decision-making on the Zimbabwe Stock Exchange. The main objective was to identify and assess the effect of the behavioural factors on investment decisions of individual investors. A quantitative survey of 291 randomly selected individual Zimbabwe Stock Exchange investors was conducted. Multiple regression analysis was used to calculate the correlation coefficient of behavioural factors and investment decision while correlation analysis was used to measure the strength of the relationship between the independent variables. The findings of the study established that the predictor variables had a strong positive association between them and individual investor decision at a significant level of 0.01 and 0.005. The findings of the study revealed that individual investor decisions are influenced by the behavioural factors which are; anchoring, availability, gambler’s fallacy, overconfidence, herding, loss aversion, mental accounting, regret aversion and representativeness. The study recommends the need for improved information on the stock markets dynamics as well as training on investor awareness programmes to support the decision-making abilities of the individual investors on the ZSE to fully play its rightful role in the development of the economy.

Effect of Overconfident Investor Behavior to Stock Market

2010 ◽  
Vol 14 (6) ◽  
pp. 661-668 ◽  
Author(s):  
Ryota Inaishi ◽  
◽  
Kaoru Toya ◽  
Fei Zhai ◽  
Eisuke Kita
Keyword(s):  
Stock Market ◽  
Behavioral Finance ◽  
Efficient Market Hypothesis ◽  
Investor Behavior ◽  
Efficient Market ◽  
Multiagent Simulation ◽  
Finance Theory ◽  
The Relationship ◽  
Psychological Bias

Behavioral finance theory has been presented to explain the phenomena not explainable by conventional finance theory based on efficient market hypothesis from the investor psychology. We focused on overconfidence – an important psychological bias –, and analyzed the effect of overconfident investor behavior in stock market using multiagent simulation. We found that, based on the increase in overconfident market investors, market dealing increases and rising trends occur more often. An analysis of the relationship between overconfidence and rising trends shows that rising trends make investors even more overconfident.

scholarly journals Research on the Relationship between CEO's Overconfidence and Corporate Investment Financing Behavior

2018 ◽  
Vol 10 (1) ◽  
pp. 8
Author(s):  
Yan-liang Zhang ◽  
Zi-wei Yang
Keyword(s):  
Corporate Finance ◽  
Behavioral Finance ◽  
Stock Exchange ◽  
Private Company ◽  
Corporate Leaders ◽  
Investment Financing ◽  
Owned Company ◽  
Financing Behavior ◽  
Finance Theory ◽  
The Relationship

At present, the classic corporate finance theory is challenged by various behavioral visions of corporate leaders in the actual decision-making of corporate finance. From the perspective of behavioral finance, this paper selects the data of A-share listed companies in China's Shanghai Stock Exchange and Shenzhen Stock Exchange in 2003-2016 to study the relationship between CEO's overconfidence and business operations. The study found that: Overconfidence CEOs will tend to increase the level of leverage, increase the number of loans, especially to increase the number of short-term loans; When the economic growth is faster, the listed company's CEO is more inclined to overconfidence; However, unlike the results of foreign studies, overconfident companies did not replace CEOs more frequently than non-overconfident companies, and did not increase the probability of bankruptcy. Finally, the CEO of a state-owned company does not appear to be more overconfident than the CEO of a private company.

scholarly journals BEHAVIORAL FINANCE: EMPIRICAL EVIDENCE USING MAGIC FORMULA IN THE BRAZILIAN STOCK MARKET

2020 ◽  
Vol 21 (6) ◽  
Author(s):  
FREDERICO DIMARZIO ◽  
JOSE MATIAS FILHO ◽  
RICARDO A. FERNANDES
Keyword(s):  
Stock Market ◽  
Behavioral Finance ◽  
Design Methodology ◽  
Stock Exchange ◽  
Behavioral Effect ◽  
Magic Formula ◽  
Economic Agents ◽  
Efficient Markets Hypothesis ◽  
Finance Theory ◽  
Made In

ABSTRACT Purpose: Explain the causes of inefficiencies in asset pricing on the Brazilian stock exchange through the behavioral finance hypothesis. Originality/value: Research made in the stock market over the last decades suggests that there is evidence of obtaining returns above the market average, through the purchase of undervalued assets, that is, when it has a low relation between the price and the fundamentals of the company. However, there is a notable discrepancy regarding the interpretation of causes among academics. The efficient markets hypothesis was presented, which is based on the premise of the strict rationality of economic agents. On the other hand, the behavioral finance theory was also discussed, which presents different assumptions. Design/methodology/approach: Using the historical quotes of the shares traded on B3, extracted from economática(r)'s database, the present work used the Magic Formula methodology to investigate the behavioral effect through the inefficiencies found in the pricing of these assets. Findings: The results suggest that the Brazilian stock market, in conformity with works of the same nature performed in markets in other countries, has inefficiencies in the pricing of assets, so that it is possible to obtain advantages from economic agents. The interpretation for the causes of such inefficiencies is based on the premises of behavioral finance, and points to the existence of a limitation in the rationalization of these agents.

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