Stock Market Anomalies as Mediators Between Prospect Factors and Investment Decisions and Performance: Findings at the Individual Investor Level

While other studies have investigated the direct impact of prospect factors on investment decisions and performance at the individual level, we examine the mediated link between the two, via fundamental, technical and calendar anomalies. The study applies a structural equation model to data for 324 individual investors in Pakistan. Our findings show that two processes, fundamental and calendar anomalies, mediate the relationship between certain prospect factors and investment decisions and performance. Of these prospect factors, regret aversion is the strongest predictor of investment decisions and performance, followed by calendar anomalies. It is also the strongest predictor of investment decisions and performance via fundamental anomalies.

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Pengaruh Status Quo, Herding Behaviour, Representativeness Bias, Mental Accounting, serta Regret Aversion Bias terhadap Keputusan Investasi Investor Milenial di Kota Surabaya

Jurnal Ilmu Manajemen ◽

10.26740/jim.v9n2.p779-793 ◽

2021 ◽

Vol 9 (2) ◽

pp. 779

Author(s):

Syifa Aulia Mahadevi ◽

Nadia Asandimitra Haryono

Keyword(s):

Structural Equation ◽

Investment Decisions ◽

Mental Accounting ◽

Equation Model ◽

Status Quo ◽

Snowball Sampling ◽

Herding Behavior ◽

Investment Activity ◽

Regret Aversion ◽

The Impact

Investment activity in Indonesia steadily increases as more people become aware of the investment's value and potential returns. This study aims to determine the impact of status quo bias, herding behavior, representation, and mental accounting on the investment decisions of millennial investors in Surabaya. This study is conclusive because it used purposive and snowball sampling techniques to obtain samples by distributing online questionnaires—the research sample as many as 241 respondents. The analysis technique uses Structural Equation Model (SEM). This study focuses on millennial investors registered with the Indonesian Central Securities Depository (KSEI) and securities firms in Surabaya. The findings suggest that the variables status quo and regret aversion significantly bias investment decisions, whereas herding behavior, representativeness, and mental accounting do not affect investment decisions. Thus, this study can assist various parties, particularly millennial investors, pay more attention to their biases and be more cautious when making investment decisions

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Developing Individual Level Outcome Measures in the Context of Knowledge Management Success

Strategies for Knowledge Management Success - Advances in Knowledge Acquisition, Transfer, and Management ◽

10.4018/978-1-60566-709-6.ch007 ◽

2010 ◽

pp. 106-127 ◽

Cited By ~ 1

Author(s):

Shahnawaz Muhammed ◽

William J. Doll ◽

Xiaodong Deng

Keyword(s):

Knowledge Management ◽

Structural Equation ◽

Conceptual Knowledge ◽

Work Performance ◽

Organizational Level ◽

Equation Modeling ◽

Contextual Knowledge ◽

Individual Level ◽

And Performance ◽

The Individual

Success of organizational level knowledge management initiatives depends on how effectively individuals implementing these initiatives use their knowledge to bring about outcomes that add value in their work. To facilitate assessment of individual level outcomes in the knowledge management context, this research provides a model of interrelationships among individual level knowledge management success measures which include conceptual knowledge, contextual knowledge, operational knowledge, innovation, and performance. The model was tested using structural equation modeling based on data collected from managerial and professional knowledge workers. The results suggest that conceptual knowledge enhances operational and contextual knowledge. Contextual knowledge improves operational knowledge and is also a key predictor of innovations. The innovativeness of an individual’s work along with operational knowledge enhances work performance. The results support the proposed model. This model can potentially be used for measuring knowledge management success at the individual level.

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INVESTOR BEHAVIOR IN DETERMINING INVESTMENT ON REAL ASSET

MIX JURNAL ILMIAH MANAJEMEN ◽

10.22441/mix.2019.v9i2.006 ◽

2019 ◽

Vol 9 (2) ◽

pp. 327

Author(s):

Yuniningsih Yuniningsih ◽

Muhamad Taufiq

Keyword(s):

Loss Aversion ◽

Psychological Factors ◽

Structural Equation ◽

Investment Decision ◽

Investment Decisions ◽

Equation Model ◽

Investor Behavior ◽

Illusion Of Control ◽

Positive Direction ◽

Regret Aversion

Behavior in determining investment is influenced by factors from the fundamental side or individual psychology. This study aims to determine how psychological factors influence investor behavior in determining future investments. This research is a field experimental study using questionnaire data. The variables used in investment decision making include loss aversion, regret aversion and illusion of control bias with 15 total indicators. The sample is an investor in the real asset field and the data is processed using the Structural Equation Model (SEM) with the AMOS program. The results showed that psychological factors both loss aversion and illusion of control bias had a significant effect on investment decisions in a positive direction. While regret aversion has a significant effect with negative direction with investment decisions. Novelty in this study, that psychological factors in behavior finance not only affect securities investors but also real asset investors.

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

Applied Economics and Finance ◽

10.11114/aef.v7i5.4927 ◽

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.

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Thought self-leadership strategies and sales performance: integrating selling skills and adaptive selling behavior as missing links

Journal of Business and Industrial Marketing ◽

10.1108/jbim-06-2016-0127 ◽

2017 ◽

Vol 32 (5) ◽

pp. 652-663 ◽

Cited By ~ 15

Author(s):

Rakesh Singh ◽

Narendra Kumar ◽

Sandeep Puri

Keyword(s):

Self Efficacy ◽

Structural Equation ◽

Sales Performance ◽

Sales Force ◽

Equation Model ◽

Content Type ◽

Adaptive Selling ◽

Individual Level ◽

Adaptive Selling Behavior ◽

The Individual

Purpose This study aims to address the need to study salespersons’ thought self-leadership (TSL) and its effectiveness through the interplay of self-efficacy, skills and behavior at the individual level. It also advances the agenda of integrating self-leadership into marketing literature. Design/methodology/approach A model was tested using survey data collected from salespeople within pharmaceutical companies located in India and other Asian countries. A structural equation model was used to test the hypotheses. Findings The results suggest an interesting interplay between a salesperson’s TSL and his/her sales performance. The results also demonstrate the relationship between TSL and self-efficacy and the mediation mechanism through which self-efficacy influences sales performance. Results support the role of TSL as a distal predictor of performance and delineate the complexity of the mediation mechanism through theoretical grounding and empirical evidence. Research limitations/implications The research suggests that a salesperson’s TSL relates positively with the sales performance through three process variables; self-efficacy, selling skills and adaptive selling behavior. The results should encourage managers to leverage salesperson’s TSL strategies to build a self-leading sales force and optimize supervision cost. Moreover, training the sales force for enhanced TSL has immediate payoffs in terms of increased selling effectiveness. The study also discusses theoretical implications. Originality/value By examining TSL in the sales context, the study makes an original contribution to the extant literature. The results of the study enrich the extant information on self-leadership and sales performance linkages by suggesting a mediation mechanism and proposing an integrated framework with selling skills and adaptive selling behavior.

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Tracing the effects of politicization on public procurement specialists’ decision-making through values: A structural equation model of the broker-purist lens

Journal of Public Procurement ◽

10.1108/jopp-17-01-2017-b003 ◽

2017 ◽

Vol 17 (1) ◽

pp. 53-88 ◽

Cited By ~ 1

Author(s):

Alexandru V. Roman

Keyword(s):

Decision Making ◽

Public Administration ◽

Structural Equation Model ◽

Structural Equation ◽

Public Procurement ◽

Equation Model ◽

Individual Level ◽

The Past ◽

The Individual ◽

Bp Model

Currently, our understandings of the dynamics behind the effects of politicization on values and on administrative decision-making remain largely muddled and far from complete. The richness of theoretical accounts, amassed over the past eight decades, has yielded only a limited number of empirical examinations. This failure to develop a coherent collection of empirical works can be for the most part attributed to the complexity associated with studying values, particularly to the lack of clear and testable theories and models. This article attempts to address this deficit and to add to our understandings of the association between values and administrative decision-making at the individual level by explicitly testing the Broker-Purist (BP) model (within a sample of public procurement specialists). It is found that the BP model fits the data well, which suggest the framework as a valid and useful perspective for conceptualizing the effects of environmental politicization on administrative decision-making in public procurement specifically, and in public administration in general.

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The Impact of Behavioral Finance on Lebanese Investors’ Decision Making

International Journal of Progressive Sciences and Technologies ◽

10.52155/ijpsat.v25.1.2758 ◽

2021 ◽

Vol 25 (1) ◽

pp. 112

Author(s):

Pr.Latifa Ghalayini ◽

Sally Ziad Alkees

Keyword(s):

Decision Making ◽

Behavioral Finance ◽

Structural Equation ◽

Psychological Theory ◽

Equation Model ◽

Individual Investors ◽

Subjective Judgement ◽

Expected Utility Maximization ◽

Regret Aversion ◽

The Impact

The inability of the traditional expected utility maximization of rational investors (within the efficient markets Framework) to explain many empirical patterns; was the main stimulus beyond the appearance for another track to resolve and analyze this inconsistency; through combining behavioral and cognitive psychological theory together where Behavioral Finance is known mainly as the irrational part that deals with investors’ Sentimental side. Furthermore it can be agreed on that behavioral finance is considered as “Subjective judgement” where ideas and decisions cannot be transmitted to other’s knowledge, as each one acts from his own point of interest; unlike conventional finance paradigm. Therefore, this paper seeks to determine the main behavioral errors or biases that are faced mainly by the Lebanese individual investor during decision making process. Results obtained by analyzing 211 questionnaires through SPSS software to develop a Structural equation model. Findings prove that Over Confidence and regret aversion are the main behavioral biases that control the Lebanese individual investors’ decision making.

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The Influence of Cognitive and Affective Reactions to Feedback on Subsequent Goals

European Psychologist ◽

10.1027/1016-9040/a000011 ◽

2010 ◽

Vol 15 (2) ◽

pp. 121-131 ◽

Cited By ~ 20

Author(s):

Remus Ilies ◽

Timothy A. Judge ◽

David T. Wagner

Keyword(s):

Performance Feedback ◽

Business School ◽

Structural Equation ◽

Emotional Reactions ◽

Equation Model ◽

Proposed Model ◽

And Performance ◽

Dispositional Measure ◽

The Relationship ◽

Reactions To Feedback

This paper focuses on explaining how individuals set goals on multiple performance episodes, in the context of performance feedback comparing their performance on each episode with their respective goal. The proposed model was tested through a longitudinal study of 493 university students’ actual goals and performance on business school exams. Results of a structural equation model supported the proposed conceptual model in which self-efficacy and emotional reactions to feedback mediate the relationship between feedback and subsequent goals. In addition, as expected, participants’ standing on a dispositional measure of behavioral inhibition influenced the strength of their emotional reactions to negative feedback.

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The Effect of Individual’s Technological Belief and Usage on Their Absorptive Capacity towards Their Learning Behaviour in Learning Environment

Sustainability ◽

10.3390/su13020718 ◽

2021 ◽

Vol 13 (2) ◽

pp. 718

Author(s):

Thomas Dolmark ◽

Osama Sohaib ◽

Ghassan Beydoun ◽

Kai Wu

Keyword(s):

Social Networks ◽

Absorptive Capacity ◽

Structural Equation Modelling ◽

Structural Equation ◽

Social Influences ◽

Technology Readiness ◽

Learning Behaviour ◽

Individual Level ◽

Equation Modelling ◽

The Individual

Absorptive capacity is a common barrier to knowledge transfer at the individual level. However, technology absorptive capacity can enhance an individual’s learning behaviour. This study investigates that technology readiness, the tools for knowledge sources, social influences, and social networks influence an individual’s absorptive capacity on an adaptation of the individual learning behaviour. A quantitative approach is used to assess the presence of a causal relationship from the constructs mentioned above. Data were collected from university students in Australia to examine the hypotheses. With 199 responses, a partial least squares structural equation modelling (PLS-SEM) approach was used for the analysis. The results generated mixed findings. Individual’s technological belief in optimism and innovation and social influences had a significantly weaker effect on individual absorptive capacity, which in turn had a significantly weaker impact on their learning behaviour.

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Perceived marketization in Poland: Translating key concepts of institutional anomie theory to the micro level

European Journal of Criminology ◽

10.1177/1477370821996853 ◽

2021 ◽

pp. 147737082199685

Author(s):

Jacek Bieliński ◽

Andreas Hövermann

Keyword(s):

Structural Equation ◽

Structural Equation Models ◽

Social Institutions ◽

Institutional Anomie Theory ◽

Individual Level ◽

Anomie Theory ◽

Representative Random Sample ◽

Order Factor ◽

Micro Level ◽

The Individual

Institutional anomie theory (IAT) describes the potentially criminogenic impact of economically dominated social institutions. Although originally cast at the macro level of society, more efforts have emerged lately to capture the IAT framework on the individual level, resulting in a need for appropriate measures representing the presumed marketization processes. Our study addresses this need by offering a theoretically derived, comprehensive measure of the individual-level instantiation of an anomic culture depicted in IAT, that is, ‘marketized mentality’. Structural equation models testing for the single higher-order factor marketized mentality are calculated with a representative random sample of Poland’s population. Finally, the implications and limitations resulting from the analyses are discussed.

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