Purpose The authors aim to assess whether herding in GCC stock markets is more responsive to global dynamics than its response to regional developments. To do so, they use the largest equity market in the region which is Saudi Arabia as the benchmark, and then they examine if herding crosses from this large regional market to the rest of equities in the neighboring markets during various time periods

Purpose The purpose of this paper is to explore the impact of national culture on leverage speed of adjustment (SOA) across countries. Design/methodology/approach We use a partial adjustment model to estimate the impact of national culture (assessed using Hofstede's six cultural dimensions) on leverage SOA. Findings We find that culture does significantly affect the degree to which firms deviate from

Purpose With the unprecedented growth of digitalization across the globe, a new asset class, that is cryptocurrency, has emerged to attract investors of all stripe. The novelty of this newly emerged asset class has led researchers to gauge anomalous trade patterns and behavioural fallacies in the crypto market. Therefore, the present study aims to examine the herd behaviour in a newly evolved cryptocurrency

Purpose The purpose of this paper is to capture the investors' mood related to the COVID-19 pandemic and analyze its impact on the stock market returns. Design/methodology/approach To capture the investor mood related to the COVID-19 pandemic, the authors construct a unique COVID-19 fear index based on the Search Volume Index (SVI) from Google Trends (http://www.Google.com/trends/) of the search terms

Purpose Unlike previous crisis where investors tend to put their assets in safe havens like gold, the recent coronavirus pandemic is characterised by an increase in the Bitcoin purchasing described as risk heaven. This paper aims to analyse the Bitcoin dynamics and the investor response by focusing on herd biases. Therefore, the main objective of this work is to study the degree of efficiency through

Purpose The purpose of this paper is to identify whether heuristic and herding biases influence portfolio construction and performance in Greece. The current research determines the situation among investors in Greece, a country with several economic problems for the last decade. Design/methodology/approach A survey has been conducted covering a group of active private investors. The relationship between

Purpose This paper investigates how the gambling measure captures market bubble events, and how it predicts stock return and option return. Design/methodology/approach This paper proposes a gambling activity measure by jointly considering open interest and moneyness of out-of-the-money (OTM) individual equity call options. Findings The new measure, CallMoney, captures excessive optimism during the

Purpose The purpose of this paper is to investigate whether switching to a CEO of the opposite sex affects the tax aggressiveness of firms. Design/methodology/approach Regression analysis using a difference in difference approach and propensity score matching on a dataset of 8,798 firms from 2007 to 2017. Findings The authors find evidence that switching to a female CEO reduces the effective tax rate

Purpose The authors evaluate the preferences of retail investors with regard to the investment in structured financial products. The purpose of the paper is an analysis of the relative importance of key product attributes namely the issuing bank, the product structure, the associated costs and the disclosed risk. Design/methodology/approach The authors conduct a choice-based conjoint analysis, based

Purpose The argument that terror perception and individual time perspectives can affect behaviors has become increasingly relevant. This study analyzed the association of terror perception with financial risk and developed an integrated framework of the interaction between terror perception (mortality salience) and time perspective to determine risky investment. People with different time perspectives

Purpose The purpose of this paper is to portray the valuation of financial investments as mental time travel. Design/methodology/approach In a series of thought investments, $1 invested in an investment fund is mentally projected forward in time and then discounted back to the present – with no objective time passing. The thought investments feature symmetric valuation (in which discount rates exactly

Purpose The authors investigate the extent to which online talk can influence contemporaneous and future stock trading, especially when market news is unpresented. Design/methodology/approach The authors propose an improved sentiment formula incorporating online hype, neutral sentiment and poster reputation. In addition, they conduct event study, OLS regression analyses and probit models. Findings

Purpose The purpose of this study is to construct composite index variables of credit attitude using six attitudinal variables. This study also examines the relationship between consumer credit attitude and credit card debt behaviors. Design/methodology/approach This study used the pooled dataset of the 2010 and 2013 Survey of Consumer Finances (SCF) released by the Federal Reserve Board. A total of

Purpose Despite the emergence of peer-to-peer (P2P) lending in Malaysia, there is a knowledge gap on what drives the lending decision of P2P lending in the emerging Malaysian market. This research investigates how borrower's loan tenure, funding purpose, verified documents, accumulated transaction and repayment history, age, trustworthy and geographical resemblance affect likelihood of lending decision

Purpose The findings would help in designing useful and relevant hedging strategies against geopolitical risks (GPRs), which are rampant in the Gulf Cooperation Council (GCC) region. Design/methodology/approach This study focuses on the regional and global costs of GPRs for businesses in the Gulf region. Findings The results of the analysis show that the time-varying conditional correlation between

Purpose Recent studies have shown that low-volatility shares outperform high-volatility shares. Given the conventional finance theory that risk drives return, this study aims to investigate and attempt to explain the presence of the low-risk anomaly (LRA) in South Africa. Design/methodology/approach Using share prices from 1990 to 2016, various buy-and-hold strategies are constructed to determine the

Purpose Numerous exploratory, conceptual and empirical enquiries on financial behaviour and literacy have been conducted in the areas of economics, finance, business and management. However, no attempt was made to present a comprehensive science mapping of the area so far. Hence, the study intends to elicit the trend in the research field through synthesis of knowledge structures. Design/methodology/approach

Purpose COVID-19 has had an immense impact on global stock markets, with no sector escaping its effects. Investor attention towards COVID-19 surged as the virus spread, the number of cases grew and its consequences imposed on everyday life. We assess whether this increase in investor attention may explain stock returns across different sectors during this unusual period. Design/methodology/approach

Purpose This paper attempts to identify the biases in decision-making of individual investors. The paper aims to develop and validate a higher-order behavioral biases scale. Design/methodology/approach Scale development is done by identifying the relevant items of the scale through existing literature and then, adding new items for some biases. In phase 1, using a structured questionnaire, data was

Purpose The purpose of this paper is to investigate the impact of the global coronavirus (COVID-19) pandemic on stock market liquidity, while taking into account the depth and tightness dimensions. Design/methodology/approach The author used a panel data regression on stock market dataset, representing 314 listed firms operating in six Middle East and North African (MENA) countries from February to

Purpose The paper answers the following questions: (1) Do firms located in rural areas experience greater problems in accessing financial services? (2) If this is the case, what can these firms do to improve their access to finance? Design/methodology/approach This paper uses the pooled logistic regression and the data collected by the World Bank's Enterprise Surveys during the period between 2008

Purpose In the era of big data investors deal every day with a huge flow of information. Given a model populated by economic agents with limited computational capacity, the paper shows how “too much” information could cause financial markets to depart from the assumption of informational efficiency. The purpose of the paper is to show that as information increases, at some point the efficient market

Purpose In this paper, we study the effect of induced positive and negative moods on traders' willingness to trade (pay and accept) in experimental asset markets. Design/methodology/approach We conduct experimental asset markets where subjects undergo a mood induction procedure prior to trade. After the subjects are induced with either negative or positive affect, they can trade an experimental asset

Purpose Herd behavior has been studied herein and tested based on primary respondents from Indian markets. Design/methodology/approach The paper expounds the empirical evidence by applying the cross-sectional absolute deviation method and reporting on herd behavior among decision-makers who are engaged in trading in the Indian stock market. Further, the study attempts to analyze the market-wide herding

Purpose This paper documents a strong violation of the law of one price surrounding a large rights issue. Design/methodology/approach If prices are right, the relation between the prices of shares and rights follows the outcome of a simple calculation. Findings In the case of Royal Imtech N.V. in 2014, prices deviated sharply and persistently from the theoretical prediction. Throughout the term of

Purpose This paper examines the effect of financial self-efficacy and financial behaviour on financial well-being and ascertains whether financial well-being affects an individual's level of happiness in life. The authors also show the mediating role of financial behaviour in the relationship between self-efficacy and financial well-being. Design/methodology/approach The survey method of research was

Purpose The objective was to increase earnings of the city of Prievidza from waste disposal fee by proactive communication – reminder (a letter) and leaflets with targeted framing. The quasi-experiment aims to find out which type of leaflet framing (an injunctive social norm or public good) causes the most effective change in the debtors' behaviour. Design/methodology/approach The article presents

Purpose Using data for the period 1965–2016, we investigate whether there are systematic differences between the investment performance of Black fund managers and those of other races in South Africa and whether investors recognize these differences. The two-tailed test results show that there is no significant difference between the two means considering the 12 months yield return at a hypothesized

Purpose The present study attempts to analyze if personal values, namely collectivism, materialism and environment attitude, have an impact on attitude to invest in socially responsible investments (SRIs). Second, it examines the impact of attitude on SRI intention which may further be moderated by religiosity beliefs. Third, the moderated relation is further tested separately for two groups of gender

Purpose The study systematically investigates persistence in performance for simulated trading among non-professional traders in the futures market. Design/methodology/approach In this study, the authors employ a novel data set from the Chicago Mercantile Exchange (CME) Group's Trading Challenges for years 2014 through 2018 and expand upon the empirical methodology of Malkiel (1995) through improved

Purpose The causes for the formation of a bubble in the collateral market when agents are provided with homogeneous expectations are explored. This bubbly dynamics will define a sufficient condition for deleveraging. Design/methodology/approach Theoretical approach with neutral deleveraging. Findings Findings of the study are defined sufficient conditions for a behavioral rational bubble's formation

Purpose This paper examines how sophisticated and better-informed investors, such as short sellers, trade on information along the supply chain. Given the economic linkages between suppliers and customers, one would expect short sellers to trade on such information and to capitalize on investors' inattention to such economic links. Design/methodology/approach This paper uses both multivariate regression

Purpose The purpose of this paper is to investigate the role of CEO narcissism in corporate acquisitions with a focus on frequency and size and furthermore to examine the subsequent stock market reaction. Design/methodology/approach The authors investigate 751 acquisitions made by 158 UK nonfinancial firms and 202 CEOs in the 10-year period 2007–2016. The authors use the ratio of first-person singular