Indian Behavioral Finance

2020 ◽  
Vol 9 (3) ◽  
pp. 54-67
Author(s):  
Vikas Pujara ◽  
Bhavesh P. Joshi
Keyword(s):  
Behavioral Finance ◽  
Driving Forces ◽  
Review Of Literature ◽  
Financial Decisions ◽  
Behavioral Psychology ◽  
Indian Context ◽  
Finance Model ◽  
Complex Procedure ◽  
The Difference ◽  
The Impact

Behavioral finance is a relatively new field of study that combines cognitive psychology and thoughts of leaders in economics, finance, and behavioral psychology to explore the driving forces behind the financial decisions that people make. Making a decision is a complex procedure that embraces cognitive and psychological biases. The paper attempts to explore and document the literature available to review the biases in an Indian context, highlighting specific and variable factors that impact, such as personality traits, and plausibly explain the difference in the behavior from a traditional behavioral finance model. The review of literature suggests that behavioral finance in an Indian context has a pattern, which can be followed to interpret and understand the psychology of Indian investors. A conceptual framework is proposed that considers various factors that can enable understanding Indian behavioral finance. In particular, the impact of personality and financial determinants appear to be imperative to studying behavioral bias in the Indian context.

scholarly journals Behavioral Biases as An Effective Factor for the Firm Financial Decision-Making: A Literature Review

2016 ◽  
Vol 10 (2) ◽  
pp. 2103-2115
Author(s):  
Bilgehan TEKIN
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Point Of View ◽  
Decision Making Process ◽  
International Studies ◽  
Negative Effects ◽  
Financial Decisions ◽  
Behavioral Biases ◽  
Effective Decision Making ◽  
The Impact

Decision-making process is a multi-faceted and complex process. Decision making can be defined like a process of choosing from among a number of alternatives. It will not contribute enough to be fully understood and to effective decision making to be addressed only from the rational point of view. Behavioral finance is an integral part of the decision-making process. Individuals can improve their performance by recognizing the biases which discussed in the framework of behavioral finance. Understanding the possible negative effects of biases allows to the individuals to make better choices and they can avoid repeating the expensive errors in future. Result of investigations of behavioral biases on decision-makers in the firms, managerial bias issue has been raised. The studies show the effect of managerial biases on many financial decisions in firms. This paper investigated the role of biases such as overconfidence, loss aversion, optimism, anchoring, narrow framing, self-serving attribution, disposition effect etc. on financial decisions such as investing, financing, equity market, capital structure etc. This study review of 30 international studies related with behavioral corporate finance and behavioral biases that affect financial decisions in firms. The studies were gleaned from Web of Science and Google Scholar. The main contribution of this study to the literature is this study brings out the impact of behavioral biases on financial decisions in the firms by summarizing the previous studies. In this sense, this work also has an assembly quality. Therefore, this is also intended with this study that to transfer the knowledge and intellectual formation about the impact of behavioral bias on the financial decisions. In this paper, most important behavioral biases in the behavioral finance literature will be addressed.

Emerging Trends in Employee Engagement: A Review of Literature

2015 ◽  
Vol 6 (1) ◽  
Author(s):  
Manju Mahipalan ◽  
Sheena
Keyword(s):  
Real Time ◽  
Employee Engagement ◽  
Generation Y ◽  
Review Of Literature ◽  
Discretionary Effort ◽  
Indian Context ◽  
Emerging Trends ◽  
Conceptual Study ◽  
The Impact ◽  
Real Challenge

One of the strategic areas identified in Global Human Capital trend study 2014 by Deloitte is attract and engage. The topic deserves attention because 78% of the managers who participated in the study rated retention and engagement as urgent or important. Employee engagement is the extent to which employees feel passionate about their jobs, are committed to their organizations, and put discretionary effort into their work. Engaging people has become a source of competitive advantage for the organizations. Though there are hundreds of vendors offering validated surveys and benchmarking tools, managers feel these as insufficient majorly because the current process is neither detailed enough nor real time. Moreover with Generation Y at work, who looks at experience rather than engagement, employee engagement garners furthermore attention. In this context the concept of engagement needs redefining. The purpose of this conceptual study is to present an overall view of the new engagement models aimed at creating irresistible organizations. Seminal works on the topic are identified and reviewed for a better understanding of the developments in the field. Emerging as well as consistent predictors of employee engagement in Indian context are discussed in detail. Also, the article explores the upcoming tools and approaches which better measures happiness, alignment, and job satisfaction in real time. While companies in India have started recognizing the impact of employee engagement, a large proportion is yet to understand the extent of the real challenge. The roadblocks and implications for Indian organizations bring this article to a close.

The Effect of Auditor Quality on Financing Decisions

2009 ◽  
Vol 84 (4) ◽  
pp. 1085-1117 ◽  
Author(s):  
Xin Chang ◽  
Sudipto Dasgupta ◽  
Gilles Hilary
Keyword(s):  
Audit Quality ◽  
Medium Term ◽  
Market Conditions ◽  
Equity Issues ◽  
Financial Decisions ◽  
Financing Decisions ◽  
Audit Firms ◽  
Auditor Quality ◽  
The Difference ◽  
The Impact

ABSTRACT: We present a model and provide empirical evidence showing that auditor quality affects the financing decisions of companies, and that higher audit quality reduces the impact of market conditions on client financial decisions and capital structure. Consistent with our analytical predictions, we find that companies audited by Big 6 firms are more likely to issue equity as opposed to debt than are those audited by small audit firms. We also find that companies audited by Big 6 auditors are able to make larger equity issues than are those audited by small auditors, but the difference narrows when market conditions improve. Additional results show that the debt ratios of companies decrease less in response to favorable market conditions when auditor quality is high, at least over the medium term.

scholarly journals The Impact of COVID-19 Instigated Changes on Loneliness of Teachers and Motivation–Engagement of Students: A Psychological Analysis of Education Sector

2021 ◽  
Vol 12 ◽  
Author(s):  
Abir El Telyani ◽  
Panteha Farmanesh ◽  
Pouya Zargar
Keyword(s):  
Educational Psychology ◽  
Research Topic ◽  
Psychological Effects ◽  
Education Sector ◽  
Behavioral Psychology ◽  
Psychological Analysis ◽  
Global Pandemic ◽  
Depth Analysis ◽  
The Difference ◽  
The Impact

Upon the spread of the global pandemic of COVID-19, education was transformed online in an abrupt manner. Amid this change, the education sector did not have room for proper decision-making and understanding of psychological effects. This theoretical analysis aims to contribute to the proposed Frontiers Research Topic, through (a) in-depth analysis of the pandemic status and behavioral psychology and (b) examining educational psychology from the perspective of teachers regarding sudden changes. As a result, implications are suggested based on interviews, linking to extant literature. The current research recognizes the difference between online learning and emergency remote education. While the former comprises prepared means of teaching and assessment, the latter is unaccompanied by such preparedness. Thus, there are variations in the outcomes of learning, motivation, and engagement. Scholars, teachers, deans, and educational managers can benefit from current results.

scholarly journals THE EFFECT OF FINANCIAL ATTITUDE AND FINANCIAL KNOWLEDGE ON COMPANY PERFORMANCE WITH FINANCIAL DECISIONS AS INTERVENING VARIABLES: A BEHAVIORAL FINANCE PERSPECTIVE

2021 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Siti Aisyah Hidayati ◽  
Sri Wahyulina ◽  
Embun Suryani
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Financial Management ◽  
Financial Knowledge ◽  
Company Performance ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Financial Decision ◽  
The Impact ◽  
Lombok Island

This study aims to analyze the effect of Financial Attitude and Financial Knowledge on Company Performance with Financial Decision as an Intervening Variable on Small and Middle Enterprises Owners in Lombok Island. This research's theoretical contribution is expected to contribute to the knowledge and development of behavioral finance theory related to Financial Decision-making and Company Performance in Small and Middle Enterprises. Besides, it is also hoped that behavioral finance will become a subject in the financial management course. Furthermore, this research's practical contribution is expected to provide input, suggestions, and recommendations to the NTB Provincial Government's policymakers in making policies related to SMEs' development.               This research is research based on a quantitative approach, with this type of explanatory research. The study population was all SMEs in Lombok Island. The sampling was carried out by non-probability selection, namely using judgment sampling, selecting SMEs engaged in the pottery industry and had already exported. Of the existing population, there are 35 (Thirty-Five) SMEs that can be taken as samples. Respondents in this study are the owners of each of these SMEs. The data collection technique used in this study was to use a questionnaire. The data obtained will be processed as needed by using GSCA (Generalized Structured Component Analysis) statistical tools to achieve the research objectives and hypothesis testing.               The results showed that Financial Attitude and Financial Knowledge had a positive and significant effect on Financial Decision-making. Financial Decisions did not mediate the impact of Financial Attitude and Financial Knowledge on Company Performance, and Financial Decisions had a negative and significant effect on Company Performance. This circumstance is also motivated by the age of most of the respondents of productive age, mostly male, most of the education level is high school, and the length of business is more than 10 (ten) years. Keywords: Financial Attitude, Financial Knowledge, Financial Decision, Company Performance

Evaluation of the impact of public investment programs on social and economic performance of territories

2019 ◽  
pp. 109-123
Author(s):  
I. E. Limonov ◽  
M. V. Nesena
Keyword(s):  
Bayesian Modeling ◽  
Positive Impact ◽  
Public Investment ◽  
Difference In Differences ◽  
The Public ◽  
Export Activity ◽  
Regional Investment ◽  
The Difference ◽  
The Impact ◽  
Development Institution

The purpose of this study is to evaluate the impact of public investment programs on the socio-economic development of territories. As a case, the federal target programs for the development of regions and investment programs of the financial development institution — Vnesheconombank, designed to solve the problems of regional development are considered. The impact of the public interventions were evaluated by the “difference in differences” method using Bayesian modeling. The results of the evaluation suggest the positive impact of federal target programs on the total factor productivity of regions and on innovation; and that regional investment programs of Vnesheconombank are improving the export activity. All of the investments considered are likely to have contributed to the reduction of unemployment, but their implementation has been accompanied by an increase in social inequality.

Role of Credit Rating in determining Capital structure: Evidence from Non-Financial sector of Pakistan

2020 ◽  
Vol 38 (3) ◽  
Author(s):  
Shoaib Ali ◽  
Imran Yousaf ◽  
Muhammad Naveed
Keyword(s):  
Capital Structure ◽  
Credit Rating ◽  
Least Square ◽  
Annual Data ◽  
Leverage Ratio ◽  
Financial Decisions ◽  
Financial Firms ◽  
High Level ◽  
The Impact ◽  
The Capital Structure

This paper aims to examine the impact of external credit ratings on the financial decisions of the firms in Pakistan.  This study uses the annual data of 70 non-financial firms for the period 2012-2018. It uses ordinary least square (OLS) to estimate the impact of credit rating on capital structure. The results show that rated firm has a high level of leverage. Moreover, Profitability and tanagability are also found to be a significantly negative determinant of the capital structure, whereas, size of the firm has a significant positive relationship with the capital structure of the firm.  Besides, there exists a non-linear relationship between the credit rating and the capital structure. The rated firms have higher leverage as compared to the non-rated firms. The high and low rated firms have a low level of leverage, while mid rated firms have a higher leverage ratio. The finding of the study have practical implications for the manager; they can have easier access to the financial market by just having a credit rating no matter high or low. Policymakers must stress upon the rating agencies to keep improving themselves as their rating severs as the measure to judge the creditworthiness of the firm by both the investors and management as well.

The Use of Multimedia and its Impact on Bangladeshi EFL Learners at Tertiary Level

2020 ◽  
Vol 4 (2) ◽  
pp. 150
Author(s):  
Farzana Sharmin Pamela Islam
Keyword(s):  
Language Learning ◽  
Academic Writing ◽  
Teaching And Learning ◽  
English Language ◽  
Capital City ◽  
Tertiary Level ◽  
Language Classroom ◽  
The Difference ◽  
The Government ◽  
The Impact

As 21st century is the era of modern technologies with different aspects, it offers us to make the best use of them. After tape recorder and overhead projector (OHP), multimedia has become an important part of language classroom facilities for its unique and effective application in delivering and learning lesson. Although in many parts of Bangladesh, a South Asian developing country, where English enjoys the status of a foreign language, the use of multimedia in teaching and learning is viewed as a matter of luxury. However, nowadays the usefulness and the necessity of it are well recognized by the academics as well as the government. The study aims to focus on the difference between a traditional classroom void of multimedia and multimedia equipped classrooms at university level by explaining how multimedia support the students with enhanced opportunity to interact with diverse texts that give them more in-depth comprehension of the subject. It also focuses on audio-visual advantage of multimedia on the students’ English language learning. The study has followed a qualitative method to get an in-depth understanding of the impact of using multimedia in an English language classroom at tertiary level. For this purpose, the data have been collected from two different sources. Firstly, from students’ written response to  an open ended question as to their comparative experience of learning  lessons with and without multimedia facilities; and secondly, through  observation of English language classes at a private university of Dhaka, the capital city of Bangladesh. The discussion of the study is limited to  the use of multimedia in English language classroom using cartoons, images and music with a view to enhance students’ skills in academic writing, critical analysis of image and critical appreciation of music. For this purpose, cartoons in English language, images from Google and music from You Tube have got focused discussion in this paper.

Professional risk in processing processes complex (review of literature)

2020 ◽  
pp. 29-37
Author(s):  
L. Mavrina ◽  
E. Shaikhlislamova ◽  
I. Khasanova ◽  
L. Karimova ◽  
N. Muldasheva ◽  
...  
Keyword(s):  
Working Conditions ◽  
Urgent Problem ◽  
Review Of Literature ◽  
Complex Materials ◽  
Work Analysis ◽  
Production Factors ◽  
Bibliographic Data ◽  
Industrial Injuries ◽  
The Impact ◽  
Safe Working

The relevance of the problem. Ensuring safe working conditions is currently an urgent problem of our time. Purpose of work. Analysis of bibliographic data on issues of occupational risk, industrial injuries among workers of the processing complex. Materials and methods. To achieve this goal, materials related to this topic were studied in the works of domestic and foreign scientists. Results. A lot of scientific works are devoted to the problem of assessing professional risk in the production of a processing complex. Modern research has proved that risk assessment is one of the main methods for analyzing the impact of various production factors on an employee. Conclusion Occupational morbidity and industrial injuries are a consequence of unsatisfactory conditions and labor protection in enterprises.

Case study: Prediction and field tests of railway noise and effects of a low-height noise barrier

2020 ◽  
Vol 68 (4) ◽  
pp. 303-314
Author(s):  
Yuna Park ◽  
Hyo-In Koh ◽  
University of Science and Technology, Transpo ◽  
University of Science and Technology, Transpo ◽  
University of Science and Technology, Transpo ◽  
...  
Keyword(s):  
High Speed ◽  
Field Tests ◽  
Residential Areas ◽  
Railway Systems ◽  
Railway Noise ◽  
Sound Levels ◽  
Noise Barrier ◽  
The Difference ◽  
Reduction Effect ◽  
The Impact

Railway noise is calculated to predict the impact of new or reconstructed railway tracks on nearby residential areas. The results are used to prepare adequate counter- measures, and the calculation results are directly related to the cost of the action plans. The calculated values were used to produce noise maps for each area of inter- est. The Schall 03 2012 is one of the most frequently used methods for the production of noise maps. The latest version was released in 2012 and uses various input para- meters associated with the latest rail vehicles and track systems in Germany. This version has not been sufficiently used in South Korea, and there is a lack of standard guidelines and a precise manual for Korean railway systems. Thus, it is not clear what input parameters will match specific local cases. This study investigates the modeling procedure for Korean railway systems and the differences between calcu- lated railway sound levels and measured values obtained using the Schall 03 2012 model. Depending on the location of sound receivers, the difference between the cal- culated and measured values was within approximately 4 dB for various train types. In the case of high-speed trains, the value was approximately 7 dB. A noise-reducing measure was also modeled. The noise reduction effect of a low-height noise barrier system was predicted and evaluated for operating railway sites within the frame- work of a national research project in Korea. The comparison of calculated and measured values showed differences within 2.5 dB.

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