Does Competition Protect Retail Investors? Role of Financial Advice

2017 ◽  
Author(s):  
Yang Sun
Keyword(s):  
Financial Advice ◽  
Retail Investors

Can Unbiased Financial Advice Steer Retail Investors Towards Efficient Portfolios? Answers from a Large Field Study

2011 ◽  
Author(s):  
Utpal Bhattacharya ◽  
Andreas Hackethal ◽  
Simon Kaesler ◽  
Benjamin Loos ◽  
Steffen Meyer
Keyword(s):  
Field Study ◽  
Large Field ◽  
Financial Advice ◽  
Retail Investors ◽  
Efficient Portfolios

How do retail investors react to a market crash? The role of investment literacy

2022 ◽  
pp. 1-8
Author(s):  
Hohyun Kim ◽  
Kyoung Tae Kim
Keyword(s):  
Retail Investors

Characteristics of ETF Owners: Exploring the Role of Investor Knowledge, Fee Aversion, and Financial Advice Seeking

2018 ◽  
Author(s):  
Shane Enete ◽  
Miranda Reiter ◽  
Wendy Usrey ◽  
Andrew Scott ◽  
Martin Seay
Keyword(s):  
Financial Advice ◽  
Advice Seeking

The financial advice puzzle: The role of consumer heterogeneity in the advisor choice

2020 ◽  
Vol 54 ◽  
pp. 102014
Author(s):  
Christopher Amaral ◽  
Ceren Kolsarici
Keyword(s):  
Consumer Heterogeneity ◽  
Financial Advice

Retirement concerns and financial literacy in Brunei

2020 ◽  
Vol 40 (3/4) ◽  
pp. 342-365
Author(s):  
Pg Md Hasnol Alwee Pg Hj Md Salleh ◽  
Roslee Baha
Keyword(s):  
Financial Literacy ◽  
Home Ownership ◽  
Pension Reform ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Content Type ◽  
Financial Advice ◽  
Knowing How ◽  
Retirement Plan

PurposeDespite the inclusion of financial literacy in retirement studies, there are limited studies that look into retirement concerns and how financial literacy plays a role in managing retirement concerns. Understanding retirement concerns prior to retirement is important given how it affects retirement satisfaction. Therefore, this paper aims at assessing the retirement concerns in Brunei and the role of financial literacy in managing those concerns.Design/methodology/approach700 government employees, divided into three groups, were interviewed: Defined Contribution Plan (DCP) employees retiring in the next 10–15 years, DCP employees retiring in 20–30 years' time and Defined Benefit Plan (DBP) employees retiring in the next 10 years. Pearson's chi-square tests and logistic regressions were used to ascertain significant relationships.FindingsThe results indicate the relatively younger DCP group is more likely to be financially literate compared to senior groups however, these respondents are more inclined to focus on private home ownership at this juncture. The findings also indicate the importance of knowing how much to save for retirement towards determining those with an additional retirement plan, and consequently reducing their retirement concerns. The value of financial advice is also significant in determining the amount to save for retirement and in possessing an additional retirement plan.Research limitations/implicationsResults cannot be generalised to the population, as purposive sampling was utilised due to the absence of a population frame.Practical implicationsThe implications of the paper may provide value to policymakers to consider approaches to enhance the quality of financial advice and provide sound knowledge in computing the amount needed for retirement. Understanding the role of financial literacy vis-à-vis retirement concerns may also be useful for neighbouring countries with similar socio-cultural aspects such as Malaysia.Originality/valueGiven the limited research on retirement concerns and financial literacy, this paper is one of the few to emphasise on the importance of knowing how much is needed to save for retirement, in relation to retirement concerns. This may also be useful in other countries/communities with similar retirement context such as those with relatively low retirement planning or with similar retirement schemes. Further, with the 1993 pension reform, there is no known publication on retirement concerns and expectations in Brunei. Left unchecked, it may lead to poverty in old age and/or dependency on welfare institutions and family support.

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

Herding and loss aversion in stock markets: mediating role of fear of missing out (FOMO) in retail investors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shilpi Gupta ◽  
Monica Shrivastava
Keyword(s):  
Loss Aversion ◽  
Investment Decision ◽  
Investment Decisions ◽  
Herd Behavior ◽  
Content Type ◽  
Fear Of Missing Out ◽  
Mediating Role ◽  
Retail Investors ◽  
The Impact

PurposeThe study aims to understand the impact of loss aversion and herding on investment decision of retail investors. The study further evaluates the mediating role of fear of missing out (FOMO) in retail investors on these relationships.Design/methodology/approachThe study employed questionnaire survey to collect data from retail investors of Indian stock market. Total 323 data were collected. The collected data were examined using SmartPLS. Factor analysis and partial least square structural equation modeling were employed for fulfilling the objectives of the study.FindingsThe results of the study revealed that investment decisions of retail investors are significantly influenced by loss aversion, herd behavior as well as FOMO. Assessing the impact of herd behavior and loss aversion on investment decision in presence and absence of FOMO exposed that FOMO partially mediates these relations. The mediation was complementary in nature as the presence of FOMO increased the influence of loss aversion and herd behavior on retail investor's investment decisions.Practical implicationsBehavioral predispositions are accountable for numerous irregularities in stock markets. Thus, it is quite substantial to realize the stimulus of these partialities on investment decisions. The outcomes of this study would help financial planners and investors to keep in mind the different ways their decision outcomes could be biased and try to ignore them.Originality/valueThough there have been many studies conducted on behavioral biases and their impact on investment decisions, there are very few studies that have taken into account the FOMO factor in investment, in context of the behavioral biases. Theoretically, FOMO has been linked with herd behavior and greed of earning more, but there are very few empirical supports to this fact. Thus, this study is an attempt to fill this gap by examining the role of FOMO on investment decisions and the different biases associated with it.

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