The Informational Role of Individual Investors in Stock Pricing: Evidence from Large Individual and Small Retail Investors

2014 ◽  
Author(s):  
Hung-Ling Chen ◽  
Edward H. Chow ◽  
Cheng-Yi Shiu
Keyword(s):  
Large Individual ◽  
Individual Investors ◽  
Retail Investors

The Trading Behavior of Attention Securities with Different Closing Mechanisms: Evidence from Taiwan

2014 ◽  
Vol 17 (04) ◽  
pp. 1450026 ◽  
Author(s):  
Yu Chuan Huang ◽  
Shu Hui Chan
Keyword(s):  
Stock Exchange ◽  
Large Individual ◽  
Individual Investors ◽  
Market Manipulation ◽  
Trading Behavior ◽  
Taiwan Stock Exchange ◽  
Call Auction ◽  
Before And After ◽  
Closing Mechanism

On 1 July, 2002, the Taiwan Stock Exchange changed its closing mechanism to a five-minute call auction to limit market manipulation at day's end and enhance the fairness of the closing price. This paper examines the effect of the new closing mechanism on the behavior of attention securities and analyzes the role of each trader type in attention securities' behavior. After the new mechanism, market volatility improved, trading activity and order aggressiveness reduced, while liquidity deteriorated. The closing prices of attention securities are mainly influenced by large individual investors and by domestic institutions, with the large individual investors showing the most intention to influence prices upward during the closing interval both before and after implementation of the five-minute call auction. However, introduction of the five-minute call auction made it more difficult and costly to influence closing prices.

scholarly journals Momentum and the Disposition Effect: The Role of Individual Investors

2010 ◽  
Vol 39 (3) ◽  
pp. 1155-1176 ◽  
Author(s):  
Jungshik Hur ◽  
Mahesh Pritamani ◽  
Vivek Sharma
Keyword(s):  
Disposition Effect ◽  
Individual Investors

scholarly journals An Evaluation of Relationship between Risk, Return and Social Structure and their Impact on Individual Investor’s Behaviour at Pakistan Stock Exchange

2019 ◽  
Vol 15 (1) ◽  
pp. 184-192
Author(s):  
Sumair Farooq ◽  
Keyword(s):  
Social Structure ◽  
Stock Exchange ◽  
Research Paper ◽  
Individual Investors ◽  
Probability Method ◽  
Risk And Return ◽  
Secondary Sources ◽  
Risk Return ◽  
Investor Behaviour

This research paper focusing on twofold purposes: where the first part focuses on providing positive evidence on the nature of relationship between risk and return. Moreover, the second part of the paper deals with analyzing the role of risk and return and social structures on the investor’s behaviour in specific consideration with Pakistan Stock Exchange (PSX) (formerly Karachi Stock Exchange; KSE). This research paper has employed a quantitative approach for the purpose of collection of data and analysis of the results in order to fulfil the aim and objectives of the study. The data for risk and return has been collected from secondary sources. The risk and return for 50 companies that are listed on Pakistan Stock Exchange and at least once paid dividend have been calculated for 11 years which is from 2007 to 2017. Moreover, in order to collect the data for social structure and investor  behaviour  the  researcher  has  used  survey  questionnaire  as  the  research  instrument.  The  questionnaire was filled by 558 individual investors who have invested their capital in the stock of companies listed on Pakistan Stock Exchange. The sampling method that was used for the purpose of selecting respondents for getting the questionnaires filled was non-probability method. For all the independent variables the null hypotheses are rejected thus showing significance of relationship. The results from  the  regression  analysis  has  shown  that  among  all  the  predicting  variables  social  structure explains the lowest amount of variation in investor’s behaviour. Thus, overall it can be said that the results of this study are in alignment with the previous researches.

Information Cascades among Investors in Equity Crowdfunding

2018 ◽  
Vol 42 (3) ◽  
pp. 467-497 ◽  
Author(s):  
Silvio Vismara
Keyword(s):  
Social Networks ◽  
Initial Public Offering ◽  
Crucial Role ◽  
Individual Investors ◽  
Information Cascades ◽  
Equity Offerings ◽  
Equity Crowdfunding ◽  
Retail Investors ◽  
Public Offering

Finance studies on information cascades, usually in an initial public offering setting, typically differentiate between institutional and retail investors, as this is the only information available to potential backers. Information available through equity crowdfunding platforms includes details on individual investors as they may disclose information about themselves by linking their profile to social networks or websites. Using a sample of 132 equity offerings on Crowdcube in 2014, we show that information cascades among individual investors play a crucial role in crowdfunding campaigns. Investors with a public profile increase the appeal of the offer among early investors, who in turn attract late investors.

Retail Investors’ Financial Risk Tolerance and Risk-taking Behaviour: The Role of Psychological Factors

2021 ◽  
pp. 231971452110582
Author(s):  
Pragati Hemrajani ◽  
Rajni ◽  
Rahul Dhiman
Keyword(s):  
Risk Taking ◽  
Psychological Factors ◽  
Structural Equation ◽  
Financial Risk ◽  
Risk Tolerance ◽  
Individual Investors ◽  
Financial Advisors ◽  
Research Model ◽  
Financial Risk Tolerance

The aim of this article is to look at how two psychological factors affect financial risk tolerance (FRT) and financial risk-taking behaviour (FRB) of individual investors. The study also investigates the role of FRT in mediating the relationship between psychological factors and FRB. A standardized questionnaire was used to collect the information. For the study, a total of 303 completed questionnaires were used. The proposed research model was validated and assessed using partial least squares structural equation modelling. The findings revealed some important experiences. Emotional intelligence and impulsiveness have a significant relationship with both FRT and FRB, according to the results. The findings also support FRT’s position as a mediating factor in the proposed research model. The results emphasize the importance of psychological factors in determining an individual’s FRT and FRB. FRT is a complex mechanism that entails more than just psychological considerations. As a result, further research is needed to decide which additional factors financial advisors can use to increase the explained variance in FRT inequalities.

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