scholarly journals Heuristic and Biases Related to Financial Investment and the Role of Behavioral Finance in Investment Decisions: A Case Study of Pakistan Stock Exchange

2021 ◽  
Vol 4 (2) ◽  
pp. 227-236
Author(s):  
YASIR KHAN ◽  
ABDUL WAHEED KHAN ◽  
MUKHARIF SHAH ◽  
DR. SHAFIQ UR REHMAN
Keyword(s):  
Behavioral Finance ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Developed Countries ◽  
Main Stream ◽  
Cross Sectional ◽  
Investment Performance ◽  
Financial Investment ◽  
The World

The Behavioral Determinants (BD) of Perceived Investment Performance (PIP) are considered to be one of the most sizzling research concerns in the world of investment behavioral finance. Therefore, the main purpose of this study was to investigate the Heuristic and Biases Related to Financial Investment and the Role of Behavioral Finance in Investment Decisions in case of Pakistan stock exchange (PSX). Specifically, this study amid at to identify which biases impact more on PIP and to identify useful insights from the results of the study that may benefit in this discipline. Five likert scale questionnaire adapted from prior studies as it is satisfying the current scenario for industry settings of PSX. A quantitative cross sectional research design has been used in this study. The regression results found that the herding effects, over confidence, availability bias and representativeness have positive and significant impact on perceived investment performance. This study has significance for the individual investors, financial advisors, companies listed in PSX and Government. For the investors, the factors that influence their investment performance are crucial as these will influence their financial plans of future. Practical implications includes investors who desires to invest should incorporate the said BD for the accurate valuation of the assets and in taking future investment decisions. In PSX, it is first endeavor to uncover the HE, OC, AB and R as BD of PIP. This paper contribute to the existing body of literature since main stream of the previous studies concentrate more on the developed countries markets of the world. Moreover, this study put forth a well-integrated model to probe the effect of variables under consideration on PSX. Reflection of the said effect of behavioral impact in the decision making process of individuals will make the decisions more optimal and rational as well.

scholarly journals Impact of Behavioral Biases on Investment Performance in Pakistan: The Moderating Role of Financial Literacy

2020 ◽  
Vol 6 (4) ◽  
pp. 1199-1205
Author(s):  
Amir Rafique ◽  
Muhammad Umer Quddoos ◽  
Usama Kalim ◽  
Muhammad Ramzan Sheikh
Keyword(s):  
Financial Literacy ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Equation Modeling ◽  
Investment Performance ◽  
Policy Makers ◽  
Behavioral Biases ◽  
Structured Equation Modeling ◽  
Moderating Role

This study aims at understanding the relationships of certain behavioral biases with the investment performance, and identifies the moderating role of financial literacy upon these hypothesized relationships. Data is collected through questionnaire from the investors trading at Pakistan Stock Exchange (PSX). Structured Equation Modeling (SEM) is used to analyze the data with the results that only anchoring and overconfidence biases have significant effects on investment performance. The results also show that presence of financial literacy does not play any role in improving the performance of investors. Majorly, findings of current study contribute by testing the moderating role of financial literacy between the behavioral biases and the outcome of investment decisions and thus expected to be useful for investors and policy makers.  

Peran kepemilikan institusional, perencanaan pajak dan dewan komisaris asing terhadap nilai perusahaan

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Anita Ade Rahma ◽  
Lisa Nabawi ◽  
Ronni Andri Wijaya
Keyword(s):  
Significant Influence ◽  
Firm Value ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Total Sample ◽  
Tax Planning ◽  
Purposive Sampling ◽  
Institutional Leadership ◽  
Company Value

The purpose of this study is to analyze the role of institutional leadership, tax planning and foreign board of commissioners on firm value. The population in this study were 615 companies listed on the Indonesia Stock Exchange in 2015-2017. The sample was chosen using purposive sampling to get a total sample of 325 companies with a total of 975 observations of company data. The results of this study indicate that institutional leadership and tax planning have no role in increasing company value. While the foreign board of commissioners showed a significant influence on the value of the company. This proves that there is a need for diversity in the structure of the board that can trigger an increase in the value of the company. In addition, the presence of a foreign board is needed for the progress of the companyKeywords: Investment decisions; funding decisions; dividend policy; company value

scholarly journals Development of mandatory & voluntary instruments of sustainability reporting (SR) according to carrots & sticks 2006 - 2016

2020 ◽  
Vol 10 (1) ◽  
Author(s):  
Ririn Breliastiti
Keyword(s):  
Stock Exchange ◽  
Sustainability Reporting ◽  
Developed Countries ◽  
Asia Pacific ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Environmental Reporting ◽  
Government Regulations ◽  
The World ◽  
The Government

Sustainability Report (SR) has become one of the main reports of the world's leading companies. In 2005, it was found that more than 250 top companies listed on the Fortune 500 had prepared SR separately from the Annual Report. The development of the number of SRs in each country varies. In the developed countries, awareness to compile and issue SR is supported by government regulations so that SR becomes mandatory. In developing countries, SR is still voluntary because there is still no regulation that requires companies to compile and issue SR. The Carrots & Sticks report, compiled and published by KPMG, United Nations Environment Program, Unit for Corporate Governance in Africa & the Global Reporting Initiative (GRI), provided details on the development of mandatory and voluntary instruments in implementing Sustainability Reporting (SR) in various Countries throughout the world from 2006 to 2016. Therefore, this research aims to find out the development of the mandatory and voluntary instruments (government policies) related to SR in the world. This type of research is a literature review. The research instrument used consists of a tabulation containing the development of the mandatory and voluntary instruments (government policy) related to SR in the world, then the researcher conducted an analysis of these findings. The results show that there is an increasing enthusiasm for the application of SR throughout the world. There is an increase in commitment and efforts to achieve transparency and accountability. In countries that have an interest in SR, there has been a significant development, such as 19 countries in 2006, 32 countries in 2010, 45 countries and regions in 2013, and 71 countries and regions in 2016. Indonesia is one of the countries in the Asia Pacific region that has given attention to SR and has its regulations. SR regulations have grown from 180 in 2013 to 400 in 2016, with government regulations dominating 80% of all regulations. Mandatory instruments dominate more than voluntary instruments. Application of SR 30% is for large companies that have been listed on the stock exchange. SR reporting by public companies has covered all sectors on the stock exchange. This development was greatly influenced by the role of the government which encouraged companies to disclose information about sustainability in their annual reports. "Social" reporting instruments show a faster development than "environmental" reporting instruments. 

scholarly journals ARE ISLAMIC STOCKS LESS EXPOSED TO SENTIMENT-BASED MISPRICING THAN NON-ISLAMIC ONES? EVIDENCE FROM THE INDONESIAN STOCK EXCHANGE

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Rizqi Umar Al Hashfi ◽  
Ahmad Maulin Naufa ◽  
U’um Munawaroh
Keyword(s):  
Capital Market ◽  
Stock Exchange ◽  
Investor Sentiment ◽  
Principal Component ◽  
Equation Model ◽  
Cross Sectional ◽  
Stock Mispricing ◽  
Time Invariant ◽  
Islamic Values

The aim of this research is to verify the role of Islamic value in stock mispricing in the Indonesian capital market. Empirically, high investor sentiment can lead to mispricing on equity appraisal. When investors feel excessively optimistic about their valuation, equity will be overpriced, or vice versa. The presence of Islamic values, such as the prohibition of interest, speculative and uncertain transactions, and excessive leverage, arguably reduce sentiment-based mispricing. Daily and cross-sectional market data were employed. In addition, principal component analysis was conducted to construct a firm-specific investor sentiment variable. With regard to the method, the Hausman-Taylor (H-T) approach was used to deal with heterogeneity, endogeneity, and the time-invariant variable in Fama-MacBeth regression. The results show that our baseline analysis confirms the mispricing of overall stocks. However, Islamic stocks are less exposed to sentiment-based mispricing than their non-Islamic counterparts. The results are consistent with our robustness test, in which we estimate the equation model across industry and portfolio. Finally, our findings imply various insights for both investors and policymakers.

The Role of Authentic Believes in Promotion of Tolerance and Prevention from Terrorism.

ĪQĀN ◽  
2018 ◽  
Vol 1 (01) ◽  
pp. 61-80
Author(s):  
Dr. Mahmood Ahmad ◽  
Dr. Muhammad Mansha Tayyab
Keyword(s):  
Developed Countries ◽  
Single Woman ◽  
The World ◽  
The Many ◽  
Basic Beliefs ◽  
Easy Solution

Peace is the key source of all virtues. Unfortunately, since long all the world especially Muslim ummah is facing extremism and terrorism. It is very tragic are mostly those who are having the labels of Islam. One of the many reasons for this is the weakness of beliefs. Today many people have misconceptions about basic beliefs of Islam. Such people are responsible for destroying the peace of society. The best and easy solution to avoid all these riots and setting up peace is to focus on improving their beliefs. Without this the desire to establish peace is nothing more than a dream. In spite of the intention of eliminating the riots with the latest cameras, sensors, radar and all the richest resources available in the world's developed countries. There is not a single woman who travels far away from the remote and is not afraid of anyone except Allah. But the Islam, fourteen centuries ago, showed that a woman travelled alone from ?ir? to Makkah and would not have been afraid of anyone except Allah. It was possible only when the prophet (pbuh) spent his life preaching in Makkah about the purification of beliefs. In history, it is always a tradition that whenever corruption is increased on earth, Allah altered this corruption by the prophets and all the prophets started their mission with correction of beliefs.

Role of Forensic Nurses in the mortuary and postmortem examination

2020 ◽  
Vol 6 (01) ◽  
Author(s):  
RK. Gorea
Keyword(s):  
Developing Countries ◽  
Developed Countries ◽  
Postmortem Examination ◽  
Pivotal Role ◽  
Forensic Nursing ◽  
Nursing Science ◽  
The World ◽  
Fast Pace ◽  
The Developed Countries

Forensic nursing science is a developing at a fast pace in the developed countries of the world and the forensic nurses have gained valuable roles in the different departments. Mortuary services are often in a state of neglect in the developing countries especially the postmortem examination. Mainly this is due to lack of assistance to forensic physicians by educated and trained professionals. Forensic nurses can do a variety of roles to improve the functioning of the mortuaries. Role of forensic nurses in the postmortem examination and upkeep of the mortuaries is essential and it is emphasized that forensic nurses can play a very pivotal role in the functioning of the mortuaries.

scholarly journals Content and Functional Purpose of the Duty in Modern Conditions

2021 ◽  
Vol 8 (3) ◽  
pp. 123-133
Author(s):  
Halyna B. Pohrishchuk ◽  
Ruslan Ye. Voloshchuk
Keyword(s):  
Foreign Trade ◽  
Developed Countries ◽  
World Trade Organisation ◽  
Regulatory Function ◽  
National Interests ◽  
The World ◽  
Foreign Trade Activity ◽  
Definition Of ◽  
Functional Purpose

The duty as a source of budget formation and a regulator of foreign trade activity contributes to improving the macroeconomic situation and the state's entry into the international trade community. Therefore, the study of the essence and functional purpose of the duty becomes particularly relevant since it makes it possible to increase the efficiency of its functioning in modern conditions. The purpose of the study is to consider the tax and foreign trade nature of the duty, establish its essence and specific characteristics, identify the main functions and substantiate changes in the roles of duty functions in modern conditions. The specifics of the scientific tasks that make up the subject of research required the use of a set of special methods (general scientific and private scientific, theoretical and empirical), the use of which helped identifying the content of the duty, consider its functional purpose and establish the reasons for the weakening of the role of duty functions in different countries of the world. In the course of the study, two approaches to the interpretation of the essence of duty were established: as a tax and as a specific foreign trade payment. The author's definition of the duty was proposed and its main essential characteristics were clarified. It has been established that there are no unified approaches to the definition of duty functions in the scientific literature, and only two main ones (fiscal and regulatory) are substantiated. It was also covered that due to the entry of most countries into the World Trade Organisation and the establishment of restrictions on the growth of customs rates, the regulatory function of the duty is weakening. It was established that in developed countries, due to international restrictions on the application of custom rates, the role of the fiscal function of duty has decreased. It was determined that in less developed countries, in conditions of limited budget revenue sources, the fiscal function of duty continues to be the main one. The practical value of the study lies in the fact that clarifying the content and functions of duty in modern conditions makes it possible to increase the effectiveness of customs tariff regulation to protect national interests during the intensification of international integration processes

scholarly journals EFFECT OF EMOTIONAL INTELLIGENCE AND FINANCIAL LITERACY ON INVESTMENT DECISION MAKING WITH A MEDIATING ROLE OF RISK PERCEPTION

2014 ◽  
Vol 02 (02) ◽  
pp. 12-20
Author(s):  
Sahar Parvez ◽  
Keyword(s):  
Emotional Intelligence ◽  
Risk Perception ◽  
Financial Literacy ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Mediating Role ◽  
Investment Decision Making ◽  
The Impact

This research paper examines the impact of emotional intelligence and financial literacy on investment decision with a mediating role of risk perception. The data is collected by using questionnaire, from a sample of 152 investors, from stock exchange and banks. The results support that to make adequate investment decisions, investors should be financially literate and have control on their emotions. However, risk perception of investors does not mediate this relationship.

scholarly journals Competitive Factors in Ensuring the Sustainability of the Food Industry Economy

2021 ◽  
Vol 58 (1) ◽  
pp. 2018-2023
Author(s):  
Ismailov Omilxon Shukurillaevich
Keyword(s):  
Natural Resources ◽  
World Economy ◽  
Food Industry ◽  
Developed Countries ◽  
The State ◽  
Competitive Advantages ◽  
Economic Competitiveness ◽  
The World

This article discusses the issues of competition in ensuring the sustainability of the food industry in the world economy, the sources and stages of competitive advantages of States. The role of natural resources, investments and other elements in increasing the economic competitiveness of the state, as well as the stages of competitiveness of developed countries are discussed.

scholarly journals The Role of Education in Economic Development: A Comparison of South Korea and Kyrgyzstan

2018 ◽  
Author(s):  
Nargiza Sakmurzaeva
Keyword(s):  
Economic Development ◽  
South Korea ◽  
Technological Development ◽  
National Policy ◽  
Developed Countries ◽  
Developed Country ◽  
National Budget ◽  
The World ◽  
Small Economy

Education plays a big role in the economic development of the country. No country can achieve sustainable economic development without educated human capital. Education helps people to understand themselves and world. It improves the quality of their lives and leads to broad social benefits to individuals and society. Education is a very important in raising productivity of people and promotes technological development. The main purpose of this paper is to identify the role of education in the economic development by comparing South Korea and Kyrgyzstan which are represents developed and developing countries of the world. South Korea, for example, is a highly industrialized and developed country which educational system is in the list of the best 10 systems in the world. In opposite, Kyrgyzstan is an agricultural country which economy is dominated by minerals extraction, agriculture, and reliance on remittances from citizens working abroad. As a result of the research it can be concluded that education is a compulsory and one of the major tools for development of one country. A developing country with a small economy such as Kyrgyzstan should take an example from South Korea and allocate much money from the national budget for the education. So, it is important for Kyrgyzstan to implement educational policy of developed countries within the framework of national policy.

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