scholarly journals Persistence is futile: Chasing of past performance in repeated investment choices

2021 ◽  
Author(s):  
Leonardo Weiss-Cohen ◽  
Philip Warren Stirling Newall ◽  
Peter Ayton
Keyword(s):  
Mutual Fund ◽  
Financial Literacy ◽  
Behavioral Interventions ◽  
Opportunity To Learn ◽  
Past Performance ◽  
Investment Experience ◽  
Repeated Choice ◽  
The Impact ◽  
Investment Choices

When deciding where to invest, individuals choose mutual funds based on recent past performance, despite standard mandated disclaimers that "past performance does not guarantee future results." Investors would receive better long-term returns by choosing funds with lower fees. We explored the impact of fees and past performance on realistic mutual fund selections across three preregistered repeated choice experiments (N=1,600), while manipulating the presence of disclaimers between-participants. Participants persistently chased past performance despite the opportunity to learn about the futility of this strategy during sixty repeated decisions with feedback. The standard regulatory-mandated disclaimer did not help most participants, compared to giving no advice at all, and was even counter-productive for participants with low levels of financial literacy. An alternative disclaimer which explicitly highlighted the advantages of fee minimization reliably helped participants. We show how individuals who lack both financial literacy and prior investment experience are the most susceptible to making poor mutual fund choices, and can benefit the most from behavioral interventions such as the new disclaimer tested here. We discuss how these results generalize into real-world investment decisions, and how to design more efficient disclaimers that can be used beyond investment choices.

scholarly journals Environment and Potential Affecting Investment Decision for Accommodation Business: Case of Less Visited Area in Samut Songkhram and Phatthalung Province

2021 ◽  
Vol 58 (2) ◽  
pp. 1706-1717
Author(s):  
Krisada Sungkhamanee, Piyadhida Sungkhamanee
Keyword(s):  
Financial Literacy ◽  
Investment Decision ◽  
Investment Decisions ◽  
Business Case ◽  
Potential Factors ◽  
Short Term Investment ◽  
The Impact ◽  
Moderating Role

Investment decisions have great importance in different sectors of various countries and these decisions are the basis on which the outcomes of the investments are based. However, there might be certain factors that might lead to the incorrect long term and short term investment decisions. In this regard, the current study has been conducted with the core motive to explore the impact casted by the environment and potential factors i.e. salience and overconfidence on the long term investment decisions for accommodation business along with the moderation of a variable i.e. financial literacy. To fulfill this objective, the researcher has collected data from the investors of accommodation businesses in Thailand. The collected data has been subjected to different statistical techniques and tools for analysis purpose and the results have been obtained. The results obtained by the analysis of the collected data indicate that salience and overconfidence have significant impact on the long term investment decision. In addition, the moderating role of financial literacy has also been found as significant in the study. The results suggest that the investors of the accommodation business must consider the aspects of salience and overconfidence before taking any long term investment decision to avoid failure of the investment decision.    

Evaluating the impact of hedonism on investment choices in India

2019 ◽  
Vol 45 (12) ◽  
pp. 1526-1541 ◽  
Author(s):  
Harish Kumar Singla ◽  
Amit Hiray
Keyword(s):  
Stock Market ◽  
Financial Literacy ◽  
Structural Equation ◽  
Measurement Model ◽  
Equation Model ◽  
Social Recognition ◽  
Fixed Income ◽  
Content Type ◽  
The Impact ◽  
Investment Choices

Purpose The purpose of this paper is to find the effect of the hedonism value on the investment preference in India. Design/methodology/approach Based on the literature review, a measurement model is developed to measure hedonism. Further, the effect of hedonism on investment choices of an individual and the impact of age, gender and income level on investment choices and on hedonism are also measured through a structural equation model (SEM). Findings The study finds that the measurement model is reliable, and all five items, that is an exciting life, happiness, pleasure, social recognition and a comfortable life, are an appropriate measure of hedonism. The study finds that hedonists prefer to invest in stock market-related instruments and real estate. The study also ascertains that age and income affect the hedonism value negatively. The findings also indicate that women prefer to invest in fixed income instruments and men prefer to invest in stock market-related instruments. As people grow in age, they prefer to invest in fixed-income instruments and gold as a hedge, thus avoiding risky investments. Research limitations/implications The study does not include education and financial literacy of individuals in the model, rather controls these factors by selecting a sample where the minimum educational qualification of the respondent is graduation. Practical implications It is assumed that the values that drive an individual have the potential to influence his/her investment choices. Therefore, the study advises the firms offering investment services to their clients to ensure that apart from studying the demographic and risk profile of individuals, they also assess their value system. This can help them target their customers more precisely and serve them better. Originality/value The study is perhaps the first attempt to find the effect of personal values (specifically hedonism) on investment choices made by individuals, through the development of an SEM.

scholarly journals Riding the Crest of the Teachable Moment: Promoting Long-Term Health After the Diagnosis of Cancer

2005 ◽  
Vol 23 (24) ◽  
pp. 5814-5830 ◽  
Author(s):  
Wendy Demark-Wahnefried ◽  
Noreen M. Aziz ◽  
Julia H. Rowland ◽  
Bernardine M. Pinto
Keyword(s):  
Cancer Survivors ◽  
Behavioral Interventions ◽  
Fruits And Vegetables ◽  
Functional Decline ◽  
Adult Survivors ◽  
Lifestyle Changes ◽  
Prostate Cancer Survivors ◽  
Increased Risk ◽  
The Impact

Purpose Cancer survivors are at increased risk for several comorbid conditions, and many seek lifestyle change to reduce dysfunction and improve long-term health. To better understand the impact of cancer on adult survivors' health and health behaviors, a review was conducted to determine (1) prevalent physical health conditions, (2) persistent lifestyle changes, and (3) outcomes of previous lifestyle interventions aimed at improving health within this population. Methods Relevant studies from 1966 and beyond were identified through MEDLINE and PubMed searches. Results Cancer survivors are at increased risk for progressive disease but also for second primaries, osteoporosis, obesity, cardiovascular disease, diabetes, and functional decline. To improve overall health, survivors frequently initiate diet, exercise, and other lifestyle changes after diagnosis. However, those who are male, older, and less educated are less likely to adopt these changes. There also is selective uptake of messages, as evidenced by findings that only 25% to 42% of survivors consume adequate amounts of fruits and vegetables, and approximately 70% of breast and prostate cancer survivors are overweight or obese. Several behavioral interventions show promise for improving survivors' health-related outcomes. Oncologists can play a pivotal role in health promotion, yet only 20% provide such guidance. Conclusion With 64% of cancer patients surviving > 5 years beyond diagnosis, oncologists are challenged to expand their focus from acute care to managing the long-term health consequences of cancer. Although more research is needed, opportunities exist for oncologists to promote lifestyle changes that may improve the length and quality of life of their patients.

An investigation of the impact of financial literacy, risk attitude, and saving motives on the attenuation of mutual fund investors’ disposition bias

2017 ◽  
Vol 43 (3) ◽  
pp. 282-298 ◽  
Author(s):  
Sara Jonsson ◽  
Inga-Lill Söderberg ◽  
Mats Wilhelmsson
Keyword(s):  
Interest Rates ◽  
Mutual Fund ◽  
Financial Literacy ◽  
Risk Attitude ◽  
Individual Characteristics ◽  
Disposition Effect ◽  
Content Type ◽  
Fine Grained ◽  
Separate Model ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of financial literacy, risk attitude, and saving motives on the attenuation of mutual fund investors’ disposition bias. Specifically, the authors focus on individual characteristics explaining the investors’ propensity to sell shares in a poorly performing mutual fund. Design/methodology/approach The study relies on survey data collected from 1,564 Swedish households in 2013. The authors test the hypotheses considering three different portfolio compositions and portfolio performances. Each composition corresponds to a dependent variable and a separate model which are estimated using ordinal logistic regression. Findings The authors find that different forms of financial literacy affect attenuation of the disposition effect. Specifically, the authors find that knowledge about mutual funds and knowledge about current market conditions affect the attenuation of the disposition effect, whereas the authors find no support for the effect of “technical financial knowledge” (e.g. the ability to calculate compound interest rates). The authors also find no support for the effects of risk attitude and saving motives on the attenuation of the disposition bias. Originality/value The findings suggest a need for a more fine-grained conceptualization of the financial literacy concept and its effect on investors’ disposition bias. Since an important implication of the findings is that financial literacy could potentially help people overcome behavioral bias, the study provides insights for policymakers as well as into the discussion on the design of consumer education programs.

scholarly journals Investment Literacy, Risk Tolerance and Mutual Fund Investments: An Exploratory Study of Working Adults in Kuala Lumpur

2021 ◽  
Vol 21 (1) ◽  
pp. 111-133
Author(s):  
Nurul Shahnaz Mahdzan ◽  
Rozaimah Zainudin ◽  
Siew-Chan Yoong
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Financial Literacy ◽  
Financial Education ◽  
Risk Tolerance ◽  
Kuala Lumpur ◽  
Working Adults ◽  
Higher Institution ◽  
High Investment ◽  
The Impact

Financial literacy empowers consumers to make more informedfinancial decisions,including investing in mutual funds. In thisstudy,thesociodemographic profile of working adultswith low investment literacyvis-à-vis high investment literacyare examined first. Next, the impact of investment literacyand risk toleranceon the likelihood of investing in mutual fundsare explored. Among a sample of 260 working adults comprising mainly of Masters of Business Administration(MBA) studentsfrom a leading public higher institution in Kuala Lumpur, Malaysia, the study showsthat those withBusiness/Economics education backgroundshave the highest investment literacyand are more likely to invest in mutual funds compared to individuals from the Arts and other miscellaneous backgrounds. Although Muslims are the least literatein investment matters, they are more likely to hold mutual fundinvestments relative to those who profess Christianity and Hinduism. Individuals with relatively high income and occupational levels have relatively higher investment literacy. Risk tolerance does not influence the likelihood of investing in mutual fund investments.Policymakers should focus on females, those with Arts education background, Muslims, and those from the lower income/employment ranks to increase their investment literacythrough financial education workshops. Mutual fund companies may consider embarking an aggressive knowledge sharing videos related to mutual funds via non-mainstream mediasuch as social mediato increase the penetration of mutual fund investments, among the untapped markets.

scholarly journals Frugality Is Hard to Afford

2019 ◽  
Vol 56 (1) ◽  
pp. 1-17 ◽  
Author(s):  
A. Yeşim Orhun ◽  
Mike Palazzolo
Keyword(s):  
Low Income ◽  
Financial Literacy ◽  
Liquidity Constraints ◽  
Good Deal ◽  
Financial Resources ◽  
Policy Makers ◽  
Catch Up ◽  
The Impact ◽  
Low Income Households

Intertemporal savings strategies, such as bulk buying or accelerating purchase timing to take advantage of a good deal, provide long-term savings in exchange for an increase in immediate spending. Although households with limited financial resources stand to benefit the most from these strategies, they are less likely to make use of them. The authors provide causal evidence that liquidity constraints impede low-income households’ ability to use these strategies, above and beyond the impact of other constraints. Exploiting recurring variation in household liquidity, this study shows that when low-income households have more liquidity, they partially catch up to higher-income households’ ability to use intertemporal savings strategies. The findings provide guidance to marketing managers and researchers regarding targeted promotional design and measurement of deal-proneness. For policy makers, they suggest a new path for decreasing the higher prices low-income households have been documented to pay for everyday goods. Policies have traditionally focused on increasing financial literacy or access to supermarkets. Our work suggests that providing greater liquidity can help low-income households make better use of savings opportunities already available to them.

scholarly journals Long-term assessment of ecosystem services at ecological restoration sites using Landsat time series

PLoS ONE ◽  
2021 ◽  
Vol 16 (6) ◽  
pp. e0243020
Author(s):  
Trinidad del Río-Mena ◽  
Louise Willemen ◽  
Anton Vrieling ◽  
Andy Snoeys ◽  
Andy Nelson
Keyword(s):  
Ecosystem Services ◽  
Ecological Restoration ◽  
Temporal Dynamics ◽  
Opportunity To Learn ◽  
Parent Material ◽  
Rural Landscape ◽  
Landsat Images ◽  
Landsat Satellite ◽  
The Impact

Reversing ecological degradation through restoration activities is a key societal challenge of the upcoming decade. However, lack of evidence on the effectiveness of restoration interventions leads to inconsistent, delayed, or poorly informed statements of success, hindering the wise allocation of resources, representing a missed opportunity to learn from previous experiences. This study contributes to a better understanding of spatial and temporal dynamics of ecosystem services at ecological restoration sites. We developed a method using Landsat satellite images combined with a Before-After-Control-Impact (BACI) design, and applied this to an arid rural landscape, the Baviaanskloof in South Africa. Since 1990, various restoration projects have been implemented to halt and reverse degradation. We applied the BACI approach at pixel-level comparing the conditions of each intervened pixel (impact) with 20 similar control pixels. By evaluating the conditions before and after the restoration intervention, we assessed the effectiveness of long-term restoration interventions distinguishing their impact from environmental temporal changes. The BACI approach was implemented with Landsat images that cover a 30-year period at a spatial resolution of 30 meter. We evaluated the impact of three interventions (revegetation, livestock exclusion, and the combination of both) on three ecosystem services; forage provision, erosion prevention, and presence of iconic vegetation. We also evaluated whether terrain characteristics could partially explain the variation in impact of interventions. The resulting maps showed spatial patterns of positive and negative effects of interventions on ecosystem services. Intervention effectiveness differed across vegetation conditions, terrain aspect, and soil parent material. Our method allows for spatially explicit quantification of the long-term restoration impact on ecosystem service supply, and for the detailed visualization of impact across an area. This pixel-level analysis is specifically suited for heterogeneous landscapes, where restoration impact not only varies between but also within restoration sites.

Hearing Impairment

2002 ◽  
Vol 20 (1) ◽  
pp. 341-368 ◽  
Author(s):  
MARGARET I. WALLHAGEN
Keyword(s):  
Hearing Loss ◽  
Hearing Impairment ◽  
Psychosocial Functioning ◽  
Behavioral Interventions ◽  
Negative Impact ◽  
Hearing Devices ◽  
Long Term Impact ◽  
Generic Measures ◽  
The Impact

The purpose of this chapter is to review the literature on hearing impairment, specifically the impact of hearing impairment on the functioning of elders, interventions that minimize the impact of hearing loss on functioning, and identification of issues raised by the review for nursing research. Computerized (MEDLINE, PsychINFO, and CINAHL) and manual searches were used to obtain research reports from a range of disciplines. Research articles including elders (≥ 60) and published between 1989 and 2001 were included. Twenty-five articles were selected for critical review, four written by nurses. The diversity of methodologies, the criteria used to define hearing impairment, the range of sample characteristics, and the assessment measures make comparisons across studies difficult. Most studies, however, support the negative impact of hearing impairment, especially on psychosocial functioning. Measures that are condition specific are generally more effective in capturing the impact of hearing loss than generic measures. Findings related to physical disability are less consistent. The results of intervention studies suggest that hearing devices can improve psychosocial and communication outcomes, but behavioral interventions have not shown long lasting benefit. For nurses to assist elders and their families manage the impact of hearing impairment, further research is needed in several areas that have been poorly explored. These include the dyadic experience of hearing impairment, the way in which culture influences the experience of hearing loss, the needs of hearing impaired individuals across settings, the long-term impact of ototoxic medications, and strategies to assist elders in coping with hearing impairment and utilizing available technologies.

scholarly journals Financial Literacy, Health Engagement and Residents’ Health: Evidence from China

2021 ◽  
Vol 18 (8) ◽  
pp. 4202
Author(s):  
Qilong Zheng ◽  
Zhen Peng ◽  
Shun Ding
Keyword(s):  
Rural Areas ◽  
Financial Literacy ◽  
Health Expenditure ◽  
Positive Impact ◽  
Urban Residents ◽  
Economic Perspective ◽  
Long Term Effects ◽  
Urban And Rural Areas ◽  
The Impact

This study took residents’ health level as the research object, adopted the perspective of financial literacy, and used the 2014–2018 China Family Panel Studies data to analyze the impact of financial literacy on the residents’ health. The study found that financial literacy could have a significant positive impact on the residents’ health, with long-term effects. Furthermore, it promoted the residents’ health engagement and improved their health through the intermediary effects of income and health expenditure. In addition, the impact of financial literacy on the residents’ health was heterogeneous between urban and rural areas. Compared with the case for rural residents, the improvement of financial literacy significantly improved the health of the urban residents. The outcomes of this research were the exploration of means to improve residents’ health from a new economic perspective, promote residents’ health engagement, and improve residents’ health.

Questioning the Long-Term English Learner Label: How Categorization Can Blind Us to Students’ Abilities

2015 ◽  
Vol 117 (12) ◽  
pp. 1-50
Author(s):  
Karen D. Thompson
Keyword(s):  
English Learners ◽  
Opportunity To Learn ◽  
Secondary Level ◽  
The United States ◽  
Future Research ◽  
English Learner ◽  
Educational Trajectories ◽  
Long Term English Learners ◽  
The Impact

Background/Context The label long-term English learner (LTEL) is increasingly used to describe students who have been educated in the United States for many years but have not met criteria to be considered proficient in English. Though created to draw awareness to the unique needs of a particular group of students, the LTEL label has acquired strongly negative connotations, with descriptions of LTELs often focusing on students’ perceived deficits. Limited empirical analysis of achievement and other outcomes among this group of students has been conducted, and little is known about the impact of the LTEL label on students’ educational trajectories. Purpose/Objective This study explores the characteristics and educational trajectories of students considered long-term English learners. In addition, the study explores the costs and benefits associated with the LTEL label. In particular, the author examines how prolonged classification as an English learner impacted students’ opportunity to learn and explores whether and how the LTEL label was linked to stigma for students. Research Design Using case study research methods, this study focuses on the experiences of three students in a medium-sized California school district who were considered long-term English learners. Analysis of district-wide, longitudinal data contextualizes the experiences of the three focal students. Findings/Results First, findings provide evidence of the heterogeneity of academic achievement, course placement, and long-term outcomes among students to whom the long-term English learner label is applied. Approximately half of students considered LTELs in the district had met at least some of the criteria necessary to be considered English proficient in at least one year. For instance, one focal student remained an English learner throughout middle school solely because of her scores on the state standardized math test. Meanwhile, 35% of students in the district who were considered LTELs also qualified for special education services because of documented disabilities. Second, findings indicate that there was a loose coupling between the LTEL label and specific services for students in this district. Among the three focal students, all could be considered LTELs, but their course placements and the academic rigor of their courses varied dramatically in high school. Finally, students experienced courses designed exclusively for English learners at the secondary level (but not at the elementary level) as stigmatizing. Conclusions/Recommendations Given the substantial variation among students to whom the Long-Term English Learner label is applied, this research suggests that educators and policymakers should use the LTEL label with caution. For example, “intervention” courses designed for LTELs at the secondary level may need to be reconsidered, taking into account the unique needs of the particular students the courses are intended to serve. Given the stigma that students associate with EL-only courses at the secondary level, the conditions under which such courses can function as empowering rather than stigmatizing spaces represents an important area for future research.

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