ASSESSMENT OF INDIVIDUAL AND INSTITUTIONAL INVESTOR’S INVESTMENT BEHAVIOR DURING COVID-19: A CASE OF EMERGING ECONOMY

2020 ◽  
Vol 01 (01) ◽  
pp. 93-104
Author(s):  
Aamir Sohail ◽  
Abid Hussain ◽  
Farhad Hussain
Keyword(s):  
Stock Exchange ◽  
Data Interpretation ◽  
Individual Investors ◽  
Investment Behavior ◽  
Structured Interviews ◽  
Fund Managers ◽  
Stock Investment ◽  
Retail Investors ◽  
Stock Investments ◽  
Ability Bias

In study of stock investment in the capital market by investors in Pandemic Covid-19, it is always carried out rationally. Decisions on stock investments are not always rational. main purpose of research is to analyze behavioral factors that affect preferences of individual’s investors and fund managers in emerging stock market, Pakistan Stock Exchange. The data of this research were “collected through semi-structured interviews with five fund managers and five individual investors” from Pakistan Stock Exchange. The researchers used thematic analysis for data interpretation. The major findings stress that retail investors are more effected by behavioral biases in comparison with fund managers. The results shows that there are some major biases which are affecting both type of investors like overconfidence-gambling, herding, market, prospect, errors and anchoring-ability bias. Data for this study was collected for one time only, for better understanding data may be collected for more than one time in future. Triangulation method may be directed in future for further clarification in existing study.

scholarly journals ASSESSMENT OF INDIVIDUAL AND INSTITUTIONAL INVESTOR’S INVESTMENT BEHAVIOR DURING COVID-19. A CASE OF EMERGING ECONOMY

2021 ◽  
Vol 37 (03) ◽  
pp. 267-277
Author(s):  
Sybert Mutereko ◽  
Abid Hussain ◽  
Aamir Sohail
Keyword(s):  
Thematic Analysis ◽  
Capital Market ◽  
Stock Exchange ◽  
Data Interpretation ◽  
Investment Behavior ◽  
Fund Managers ◽  
Stock Investment ◽  
Retail Investors ◽  
Stock Investments ◽  
Ability Bias

In the study of stock investment in capital market by investors in Pandemic Covid-19, it is always carried out rationally. Indeed, the decisions on stock investments are not always rational.The main purpose of this research is to analyze the behavioral factors that affect the preferences of individual’s investors and fund managers in the emerging stock market, Pakistan Stock Exchange. The data of this research were collected through interviews semi structured with the five investor and five fund managers from the stock exchange from Pakistan. The researchers used thematic analysis for data interpretation. The major findings stress that retail investors are more effected by behavioral biases in comparison with fund managers. Further, the results shows that there are some major biases which are effecting both type of investors such as: Herding, Market, Prospect, Overconfidence- gambling errors and Anchoring-ability bias. This study fills a gap in literature on investor psychological response during pandemic epidemic. According to the report, policymakers should devise a strategy to combat COVID-19. To avoid future catastrophes, government should control the health-care budget.

scholarly journals Pemahaman Mahasiswa Tentang Saham Syariah Sebelum dan Sesudah Berdirinya Galeri Investasi Syariah BEI

2020 ◽  
Vol 5 (1) ◽  
pp. 30
Author(s):  
Desi Isnaini ◽  
Cipta Isratul Muslih
Keyword(s):  
Stock Exchange ◽  
Educational Tools ◽  
Stock Investment ◽  
Economics Majors ◽  
Stock Investments ◽  
Islamic Investment

The purpose of this study is (1) to find out how students understand of Islamic Economics majors about Islamic stock investments before the establishment of the IDX Islamic Investment Gallery IAIN Bengkulu at the Faculty of Islamic Economics and Business. (2) to find out how students understand of Islamic Economics in the Islamic about stock investment department after the establishment of the Indonesia Stock Exchange Islamic Investment Gallery IAIN Bengkulu at the Faculty of Islamic data in the form is observation, interviews, and documentation. The results of this study is : (1) before enstabilistment GIS many students knows Islamic stocks is still limited to theory because there is no place of practice and educational tools to better understand about Islamic stock investment. (2) after the formation of GIS, students' understanding of sharia shares has increased compared to before the enstabilistment of GIS. Students have used existing support facilities.

scholarly journals Economy, psychology and stock investment: analysis of variables that participate in the process of decision making

2012 ◽  
Vol 5 (1) ◽  
pp. 5-17
Author(s):  
David Pascual Ezama ◽  
Beatriz Gil-Gómez De Liaño ◽  
Barbara Scandroglio
Keyword(s):  
Decision Making ◽  
Psychometric Properties ◽  
Stock Exchange ◽  
Investment Analysis ◽  
Investor Behavior ◽  
Individual Investors ◽  
Individual Investor ◽  
Stock Investment ◽  
Lack Of Information ◽  
The Relationship

The ININBE questionnaire has been recently validated in order to measure the variables that affect individual investor behavior in stock exchange. The lack of information about the methodology, items selection and psychometric properties of the instruments used in other researches has shown the necessary to elaborate and validate a questionnaire. In the present work we have applied the ININBE questionnaire to 257 individual investors. We have found interesting results about the relationship between the “psychological” and “economical” variables with individual investor’s characteristics.

scholarly journals ANALISIS INVESTASI SAHAM PERUSAHAAN GO PUBLIC SEKTOR PERTANIAN DI BURSA EFEK JAKARTA

2017 ◽  
Vol 11 (3) ◽  
pp. 391
Author(s):  
Artie Arditha ◽  
Endang Asliana
Keyword(s):  
Capital Market ◽  
Stock Price ◽  
Human Error ◽  
Stock Exchange ◽  
Portfolio Analysis ◽  
Investment Analysis ◽  
Statistical Software ◽  
Stock Investment ◽  
Stock Investments ◽  
Stock Price Movements

Investors, in a capital market, have to observe and analyze the companies’ stock price movements in order to minimize the risk in having stock investments. One of the techniques in analyzing companies’ performance is the stock investment analysis or portfolio analysis. By using the portfolio analysis, this research finds out the best combination of stock investment of PT PP London Sumatera Tbk. (LSIP) and PT Astra Agro Lestari Tbk. (AALI), as go public agricultural companies listed in Jakarta Stock Exchange. After finding the best combination of stock investment of those companies, this research also finds out whether the combination is at the optimum portfolio which would be on the least risk and a particular return or on the highest return and a particular risk. The research was held in 2006 and the data was taken from January 2004 to December 2005. The data was processed by using statistical software in order to minimize the human error. The result shows that there are two best combinations of stock investment on those companies. Those combinations are at the optimum portfolio. The first combination shows 30% of stock investment in LSIP and 70% stock investment in AALI, while the second combination shows 20% stock investment LSIP and 80% stock investment AALI. Investors should choose one of these combinations, because according to the research, these combinations would give them the best return at the least risk.

scholarly journals The intensity of stock selection: A case of young Papuan investors

2019 ◽  
Vol 3 (1) ◽  
pp. 171-178
Author(s):  
Yohanes C. Seralurin ◽  
Yendra
Keyword(s):  
Quantitative Research ◽  
Information Quality ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Positive Influence ◽  
Individual Investors ◽  
Quality Systems ◽  
Stock Selection ◽  
Stock Investment ◽  
Significant Positive Influence

The aim of the current study was to examine and to obtain empirical evidence of the behavior of individual investors in the stock investment decisions. It was quantitative research which applied sampling purposive technique for gaining data. The population of this study was individual investors in Jayapura who were actively investing in the Indonesia Stock Exchange. The results have shown that (1) Information quality systems have got significant positive influence towards the intensity of stock selection; (2) Return influences the intensity of stock selection; and (3) Education has no influence towards the intensity of stock selection.

Investment decision behaviour of the Malaysian retail investors and fund managers

2018 ◽  
Vol 10 (2) ◽  
pp. 134-151 ◽  
Author(s):  
Haruna Babatunde Jaiyeoba ◽  
Abideen Adeyemi Adewale ◽  
Razali Haron ◽  
Che Muhamad Hafiz Che Ismail
Keyword(s):  
Investment Decision ◽  
Group Discussion ◽  
Investment Decisions ◽  
Structured Interviews ◽  
Content Type ◽  
Mixed Methods Approach ◽  
Fund Managers ◽  
Qualitative Thematic Analysis ◽  
Retail Investors ◽  
Practical Implications

Purpose This study aims to investigate the Malaysian retail investors and fund managers’ investment decision behaviours. The study offers an important opportunity for understanding the investors’ experiences, how they understand the Malaysian economy and their priorities for company selection. Other main aspects of this study are how investors mitigate the influence of emotions and psychological biases and challenges faced during investment decisions. Design/methodology/approach The researchers have mainly adopted an interpretivist approach for the present study. Qualitative data elicited through semi-structured interviews conducted with four retail investors and four fund managers were subjected to qualitative thematic analysis. Findings The results reveal that the investment decision processes of fund managers are more comprehensive than those of retail investors. Although both fund managers and retail investors acknowledge the influence of psychological biases on their investment decisions, the former use different and comprehensive approaches to mitigate such influences during investment decisions compared with the latter. Other important findings are how investors understand the Malaysian economy, their priorities for company selection and challenges faced during investment decisions. Research limitations/implications The researchers have interviewed eight carefully selected interviewees across retail investors and fund managers divide. Adopting other grouping criteria, focus group discussion with more respondents or adopting a mixed-methods approach may increase our understanding of the investment decision behaviours of Malaysian retail investors and fund managers. Practical implications This study could be used as a guide by both retail investors and fund managers when making investment decisions. Originality/value This research has included both retail investors and fund managers; it has also increased literature on investment decision and behavioural finance, particularly in the context of Malaysian investors and managers.

scholarly journals ANALISIS INVESTASI SAHAM PERUSAHAAN GO PUBLIC SEKTOR PERTANIAN DI BURSA EFEK JAKARTA

2018 ◽  
Vol 11 (3) ◽  
pp. 391-410
Author(s):  
Artie Arditha R ◽  
Endang Asliana
Keyword(s):  
Capital Market ◽  
Stock Price ◽  
Human Error ◽  
Stock Exchange ◽  
Portfolio Analysis ◽  
Investment Analysis ◽  
Statistical Software ◽  
Stock Investment ◽  
Stock Investments ◽  
Stock Price Movements

Investors, in a capital market, have to observe and analyze the companies’ stock price movements in order to minimize the risk in having stock investments. One of the techniques in analyzing companies’ performance is the stock investment analysis or portfolio analysis. By using the portfolio analysis, this research finds out the best combination of stock investment of PT PP London Sumatera Tbk. (LSIP) and PT Astra Agro Lestari Tbk. (AALI), as go public agricultural companies listed in Jakarta Stock Exchange. After finding the best combination of stock investment of those companies, this research also finds out whether the combination is at the optimum portfolio which would be on the least risk and a particular return or on the highest return and a particular risk. The research was held in 2006 and the data was taken from January 2004 to December 2005. The data was processed by using statistical software in order to minimize the human error. The result shows that there are two best combinations of stock investment on those companies. Those combinations are at the optimum portfolio. The first combination shows 30% of stock investment in LSIP and 70% stock investment in AALI, while the second combination shows 20% stock investment LSIP and 80% stock investment AALI. Investors should choose one of these combinations, because according to the research, these combinations would give them the best return at the least risk.

Behavioural, Socio-economic Factors, Financial Literacy and Investment Decisions: Are Men More Rational and Women More Emotional?

2021 ◽  
pp. 001946622098702
Author(s):  
Swati Prasad ◽  
Ravi Kiran ◽  
Rakesh Kumar Sharma
Keyword(s):  
Financial Literacy ◽  
Structural Equation ◽  
Investment Decisions ◽  
Jel Classification ◽  
Economic Factors ◽  
Fund Managers ◽  
Multivariate Technique ◽  
Retail Investors ◽  
Behavioural Factors ◽  
Socio Economic Factors

This study covers the gender-wise analysis of how behavioural factors and socio-economic factors along with the level of financial literacy influence investment decisions of Indian retail investors. Equally pertinent is to understand that will it have a different influence and bearing on males and females. Multivariate technique partial least squares-structural equation modelling (PLS-SEM) has been applied to develop the model and analyse the results. The study used a structured questionnaire for collecting data from retail investors. The findings of PLS-SEM show that in both genders, behavioural factors, socio-economic factors and financial literacy factors significantly affect investment decisions. However, the findings demonstrate that for women investors, the model is more effective. This study may be useful for prospective fund managers as, in many earlier studies, women are considered to be risk aversive. The results demonstrate that there is a need to target women, and the scenario today is not similar to the pre-existing ones. JEL Classification: G110, G4

scholarly journals Designing a model for the acceptance of electronic stock exchange by individual investors

2011 ◽  
Vol 3 ◽  
pp. 1164-1169 ◽  
Author(s):  
Saeed Fathi ◽  
Ali Shaemi Barzoki ◽  
Elmira Makinian ◽  
Hassan Ghorbani ◽  
Sharif Shekarchizadeh Esfahani
Keyword(s):  
Stock Exchange ◽  
Individual Investors

Investment environment, stock market perception and stock investments after stock market crash

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Tariqul Islam Khan ◽  
Siow-Hooi Tan ◽  
Lee-Lee Chong ◽  
Gerald Guan Gan Goh
Keyword(s):  
Stock Market ◽  
Market Performance ◽  
Mediating Effect ◽  
Individual Investors ◽  
Investment Environment ◽  
Stock Market Crash ◽  
Content Type ◽  
Stock Market Performance ◽  
Market Perception ◽  
Stock Investments

PurposeThis study examines how the importance of external investment environment factors affect stock market perception, and how stock market perception affects stock investments after stock market crash witnessed by individual investors in one of the emerging stock markets.Design/methodology/approachA cross-sectional survey was administrated among 223 individual investors who experienced stock market crash in 2010–2011 in Bangladesh, and the proposed model was tested by the partial least squares-structural equation modeling PLS-SEM model.FindingsFindings show that the importance of Bangladesh's stock market performance, government policy, economic issues and neighboring country's stock market performance has effects on investors' stock market perception. This perception, in turn, decreases monthly stock trading and short-term investment horizon. The findings further show the mediating effect of stock market perception.Practical implicationsInvestors need to carefully consider the external investment environment when they form their stock market perception, as this perception drives stock investments. Analogously, regulators should ensure releasing timely and updated statistics on external investment factors.Originality/valueAddressing those investors who encountered stock market crash, a set of external investment environment issues, stock market perception and stock investments are new in the literature.

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