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Another look at the price clustering behavior: evidence from the Muscat stock exchange Review of Behavioral Finance Pub Date : 2024-03-04 Tarek Chebbi, Hazem Migdady, Waleed Hmedat, Maha Shehadeh
Purpose The price clustering behavior is becoming a core part of the market efficiency theory especially with the development of trading strategies and the occurrence of major and unprecedented shocks which have led to severe inquiry regarding asset price dynamics and their distribution. However, research on emerging stock market is scant. The study contributes to the literature on price clustering
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Conscientiousness and entrepreneurship Review of Behavioral Finance Pub Date : 2024-02-27 Sarah Khalaf
Purpose The purpose of this study is to examine the influence of conscientiousness on entrepreneurship over and above the impact of other factors that are associated with entrepreneurship in the literature. Design/methodology/approach The design uses household responses from the Panel Study of Income Dynamics (PSID) biennial survey that follows the same heads of households over time to measure their
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The growth of the real estate corporate bond market in Vietnam: the role of investor sentiment Review of Behavioral Finance Pub Date : 2024-02-09 Nhung Thi Nguyen, An Tuan Nguyen, Dinh Trung Nguyen
Purpose This paper aims to examine the effects of investor sentiment on the development of the real estate corporate bond market in Vietnam. Design/methodology/approach The research uses an autoregressive distributed lag (ARDL) model with quarterly data. Additionally, the study employs Google Trends search data (GVSI) related to topics such as “Real Estate” and “Corporate Bond” to construct a sentiment
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Air pollution and stock market returns: actual effect vs public attention in an Indian context Review of Behavioral Finance Pub Date : 2024-02-08 Anirudh Singh, Madhumita Chakraborty
Purpose This paper analyzes how air pollution and the public attention to it influence the returns of stocks in the Indian context. Design/methodology/approach The study uses firm-level data for the stocks listed on National Stock Exchange in India. Air quality is measured using the Air Quality Index (AQI) values provided by US Embassy and Consulates’ Air Quality Monitor in India. Google Search Volume
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The impact of CEO narcissism and optimism on capital structure under pandemic conditions Review of Behavioral Finance Pub Date : 2024-02-05 Elena Fedorova, Alexandr Nevredinov, Pavel Drogovoz
Purpose The purpose of our study is to study the impact of chief executive officer (CEO) optimism and narcissism on the company's capital structure. Design/methodology/approach (1) The authors opt for regression, machine learning and text analysis to explore the impact of narcissism and optimism on the capital structure. (2) We analyze CEO interviews and employ three methods to evaluate narcissism:
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Behavioral biases of cryptocurrency investors: a prospect theory model to explain cryptocurrency returns Review of Behavioral Finance Pub Date : 2024-01-23 Manisha Yadav
Purpose The study aims to test prospect theory (PT) predictions in the cryptocurrency (CC) market. It proposes a new asset pricing model that explores the potential of prospect theory value (PTV) as a significant predictor of CC returns. Design/methodology/approach The study comprehensively analyses a large sample set of 1,629 CCs, representing more than 95% of the CC market. The study uses a portfolio
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Examining the association between robo-advisory and perceived financial satisfaction Review of Behavioral Finance Pub Date : 2024-01-18 Zefeng Bai
Purpose Robo-advisory has become an increasingly popular asset management tool in recent decades. This paper studies the association between robo-advisor usage and perceived financial satisfaction. Design/methodology/approach Using data extracted from the National Financial Capability Study 2015 (NFCS2015), the present study carried out a logistic analysis that examines the association between robo-advisory
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Financial literacy bias: a comparison between students and nonstudents Review of Behavioral Finance Pub Date : 2024-01-16 Helder Sebastião, Nuno Silva, Pedro Torres, Pedro Godinho
Purpose This work uses survey data from the Portuguese Securities Market Commission (Comissão de Mercado de Valores Mobiliários – CMVM) to examine financial literacy and literacy bias. The main objective of this study is to shed light on this issue by identifying the individual characteristics that are associated with financial literacy, namely overconfidence and underconfidence, which in turn might
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How do personality traits affect investors' decision on crypto market including cryptocurrencies and NFTs? Review of Behavioral Finance Pub Date : 2023-12-05 Ji Luo, Qingning Cao, Shuguang Zhang
Purpose The purpose of the research paper is to investigate the relationship between personality traits and investment decisions in the crypto market, including cryptocurrencies and NFTs. The study aims to explore the effect of dark personalities and the big five personalities on investment decisions in the crypto market. Design/methodology/approach The research was conducted through two online questionnaire
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Exogenous shock: hierarchical effect of the industrial entrepreneur confidence in the mist of the COVID-19 pandemic Review of Behavioral Finance Pub Date : 2023-12-05 Elimar Veloso Conceição, Fabiano Guasti Lima
Purpose In the context of investment decisions, the intricate interplay between exogenous shocks and their influence on investor confidence significantly shapes their behaviors and, consequently, their outcomes. Investment decisions are influenced by uncertainties, exogenous shocks as well as the sentiments and confidence of investors, factors typically overlooked by decision-makers. This study will
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Familiarity bias in direct stock investment by individual investors Review of Behavioral Finance Pub Date : 2023-11-23 Shan Lei, Ani Manakyan Mathers
Purpose This study examines the relationship between investors' familiarity bias, including the home bias and endowment bias, and their financial situations, expectations and personal characteristics. Design/methodology/approach Using the 2019 Survey of Consumer Finances, the authors utilize an ordinary least squares regression to identify the presence of endowment bias and home bias in individual
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Risk preference, payday loans and other alternative financial services Review of Behavioral Finance Pub Date : 2023-11-17 Song Wang
Purpose The purpose of this paper is to examine how individual risk preference influences the borrowing of payday loans – a prevalent type of cash loan in the USA with exorbitantly high-interest rates. Additionally, this paper tests how risk preference determines other alternative financial services (AFS), including pawn shops, rent-to-own purchases, title loans, etc. Design/methodology/approach The
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Investor sentiments revisited: negligence of stock-level sentiments may be a mistake Review of Behavioral Finance Pub Date : 2023-11-07 Te-Kuan Lee, Askar Koshoev
Purpose The primary objective of this research is to provide evidence that there are two distinct layers of investor sentiments that can affect asset valuation models. The first is general market-wide sentiments, while the second is biased approaches toward specific assets. Design/methodology/approach To achieve the goal, the authors conducted a multi-step analysis of stock returns and constructed
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Analyst coverage and the probability of stock price crash and jump Review of Behavioral Finance Pub Date : 2023-11-07 Mohammed Bouaddi, Omar Farooq, Catalina Hurwitz
Purpose The aim of this paper is to document the effect of analyst coverage on the ex ante probability of stock price crash and the ex ante probability stock price jump. Design/methodology/approach This paper uses the data of non-financial firms from France to test the arguments presented in this paper during the period between 1997 and 2019. The paper also uses flexible quadrants copulas to compute
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Investigation of herding behavior using machine learning models Review of Behavioral Finance Pub Date : 2023-11-01 Muhammad Asim, Muhammad Yar Khan, Khuram Shafi
Purpose The study aims to investigate the presence of herding behavior in the stock market of UK with a special emphasis on news sentiment regarding the economy. The authors focus on the news sentiment because in the current digital era, investors take their decision making on the basis of current trends projected by news and media platforms. Design/methodology/approach For empirical modeling, the
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The value and growth effect in the Vietnamese stock market: a mispricing explanation Review of Behavioral Finance Pub Date : 2023-10-24 Le Quy Duong
Purpose Although the value effect is comprehensively investigated in developed markets, the number of studies examining the Vietnamese stock market is limited. Hence, the first aim of this research is to provide empirical evidence regarding returns on value and growth stocks in Vietnam. The second aim is to explain abnormal returns on Vietnamese growth and value stocks using both risk-based and behavioral
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Herd behavior in cryptocurrency market: evidence of network effect Review of Behavioral Finance Pub Date : 2023-10-10 Phasin Wanidwaranan, Santi Termprasertsakul
Purpose This study examines herd behavior in the cryptocurrency market at the aggregate level and the determinants of herd behavior, such as asymmetric market returns, the coronavirus disease 2019 (COVID-19) pandemic, 2021 cryptocurrency's bear market and the network effect. Design/methodology/approach The authors applied the Google Search Volume Index (GSVI) as a proxy for the network effect. Since
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Herding behavior by socially responsible investors during the COVID-19 pandemic Review of Behavioral Finance Pub Date : 2023-09-26 Manuel Lobato, Javier Rodríguez, Herminio Romero-Perez
Purpose This study aims to examine the herding behavior of socially responsible exchange traded funds (SR ETFs) in comparison to conventional ETFs during the COVID-19 pandemic. Design/methodology/approach To test for herding behavior, the authors use the cross-sectional absolute deviation and a quadratic market model. Findings During the pandemic, investments in socially responsible financial products
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Financial risk-taking in adult attention deficit hyperactivity disorder Review of Behavioral Finance Pub Date : 2023-09-26 Çağrı Hamurcu, Hayriye Dilek Yalvac Hamurcu, Merve Karakuş
Purpose This study aimed to examine the financial risk-taking behaviors of adult individuals diagnosed with attention deficit hyperactivity disorder (ADHD). Design/methodology/approach The study was conducted with adults (n = 80) diagnosed with ADHD and healthy controls (n = 80). In order to measure risk-taking in the financial domain, the items in the investment and gambling sub-dimensions of the
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The nexus between herding behavior and spillover: evidence from G7 and BRICS Review of Behavioral Finance Pub Date : 2023-09-19 Sarra Gouta, Houda BenMabrouk
Purpose This study aims at exploring the nexus between herding behavior and the spillover effect in G7 and BRICS stock markets. Design/methodology/approach The authors used the dynamic connectedness approach TVP-VAR model of Antonakakis et al. (2019) to capture the spillovers across different markets. Moreover, to explore herding behavior, the authors used a modified version of the CSAD measure of
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Herding and Google search queries in the Brazilian stock market Review of Behavioral Finance Pub Date : 2023-09-07 Jeferson Carvalho, Paulo Vitor Jordão da Gama Silva, Marcelo Cabus Klotzle
Purpose This study investigates the presence of herding in the Brazilian stock market between 2012 and 2020 and associates it with the volume of searches on the Google platform. Design/methodology/approach Following methodologies are used to investigate the presence of herding: the Cross-Sectional Standard Deviation of Returns (CSSD), the Cross-Sectional Absolute Deviation (CSAD) and the Cross-Sectional
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Can virtual reality nudge toward green investing? An experiment with small business entrepreneurs Review of Behavioral Finance Pub Date : 2023-08-23 Achilleas Vassilopoulos, Lydia Papadaki, Phoebe Koundouri
Purpose Storytelling through virtual reality (VR) combines the strengths of cutting-edge technology with traditional informational campaigns. As a tool for climate change mitigation, VR has been shown to educate individuals and stimulate both emotional and cognitive responses that promote pro-environmental behavior. This paper aims to investigate whether these benefits extend to the field of green
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Are small waves fondle and big waves overturn? Market reaction and corporate governance during four COVID-19 waves Review of Behavioral Finance Pub Date : 2023-08-18 Imen Khanchel, Naima Lassoued
Purpose This study examines the effects of corporate governance on market returns during the first four waves of the COVID-19 crisis. Design/methodology/approach Event study and linear regression methods were applied on a sample of 293 US firms. Findings The results show that differences in abnormal returns are more significant during the second wave of COVID-19 and the two following waves. Moreover
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Do heuristics affect Brazilian investors’ decision-making process? Review of Behavioral Finance Pub Date : 2023-07-10 Virgílio Vasconcelos Souza, Lucas Lopes Ferreira Souza, Oderlene Oliveira, Elnivan Moreira de Souza, Juliana Silva Costa
Purpose The purpose of this research is to analyze the influence of heuristics on Brazilian investors' behavior in the decision-making process. Design/methodology/approach The authors apply the partial least squares structural equation modeling methodology. This sample is composed of 220 investors. Findings The heuristics of overconfidence and anchoring positively influence investors' decision-making
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Investigating macro herd behaviour: evidence from publicly traded German companies Review of Behavioral Finance Pub Date : 2023-06-06 Sándor Erdős, Patrik László Várkonyi
Purpose The purpose of this study is to examine herd behaviour under different market conditions, examine the potential impact of the firm size and stock characteristics on this relationship, and explore how herding affects market prices in the German market. Design/methodology/approach The authors apply a method that does not rely on theoretical models, thus eliminating the biases inherent in their
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Financial stress and gambling motivation: the importance of financial literacy Review of Behavioral Finance Pub Date : 2023-05-10 Dalina Amonhaemanon
Purpose “Poor, Stressed, Drink (alcohol), and Gambling” is one of the campaigns for poverty eradication in Thailand. This study focuses on informal workers—gamblers—who belong to low-income groups and are not covered by the law as an employer. The main objective was to investigate the factors affecting financial stress among informal laborers and determine the factors that drive informal workers to
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Emojis and stock returns Review of Behavioral Finance Pub Date : 2023-05-09 Felix Reschke, Jan-Oliver Strych
Purpose The authors explore how the sentiment expressed by emojis in comments on stocks is associated with the stocks' subsequent returns. Design/methodology/approach By applying our own analyzer, the authors find a sentiment effect of emojis on stocks returns separately to the plain text-expressed sentiment in Reddit posts about meme stocks such as Gamestop during the Covid-19 pandemic. Findings The
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Target return as efficient driver of risk-taking Review of Behavioral Finance Pub Date : 2023-05-08 Catherine D'Hondt, Rudy De Winne, Aleksandar Todorovic
Purpose This paper examines whether target returns act as specific goals that impact risk-taking when individuals make investment decisions. Design/methodology/approach Using an experimental setting, the authors assign either a low or a high target return to participants and ask them to make independent investment decisions as the risk-free rate fluctuates around their target return and, for some of
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Do crypto investors wait and see during policy uncertainty? An examination of the dynamic relationships between policy uncertainty and exchange inflows of Bitcoin Review of Behavioral Finance Pub Date : 2023-04-11 Linh Thi My Nguyen, Phong Thanh Nguyen
Purpose In this paper, the authors examine the short-term and long-term impact of general economic policy uncertainty (EPU) and crypto-specific policy uncertainty on Bitcoin’s (BTC) exchange inflows – a form of crypto investor behaviors that the authors expect to drive the cryptocurrency volatility. Design/methodology/approach The authors use an autoregressive distributed lag (ARDL), coupled with the
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Gambling on the stock market: the behavior of at-risk online traders Review of Behavioral Finance Pub Date : 2023-04-06 Philippe Grégoire, Melanie Rose Dixon, Isabelle Giroux, Christian Jacques, Annie Goulet, James Eaves, Serge Sévigny
Purpose Online investment platforms offer an environment that may lead some traders into excessive behaviors akin to gambling. Over the last decade, gambling behaviors associated with the stock market have attracted the attention of many researchers but the literature on the subject remains scarce. This study aims to present the results of live interviews with a sample (N = 100) of retail investors
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Does Russia–Ukraine war generate herding behavior in Moscow Exchange? Review of Behavioral Finance Pub Date : 2023-03-30 Khemaies Bougatef, Imen Nejah
Purpose This study examines whether the Russia–Ukraine war affects herding behavior in the Moscow Exchange. Design/methodology/approach The authors employ the daily stock closing prices of 40 firms, which constitute the MOEX Russia Index from June 16, 2021, to November 30, 2022. The period before the invasion ranges from June 16, 2021, to February 23, 2022, while the post-invasion period runs from
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The impact of unproved reserve news on the energy stock volatility: an empirical investigation on Turkey Review of Behavioral Finance Pub Date : 2023-03-29 Sabri Burak Arzova, Ayben Koy, Bertaç Şakir Şahin
Purpose This study investigates the effect of unproven energy reserve news on the volatility of energy firms' stocks. Thus, investors' perception of unproven energy reserves is revealed. Additionally, the study aims to determine whether the effect of the news changes according to time and volatility level. Design/methodology/approach The general autoregressive conditional heteroskedasticity (GARCH)
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CEO social network, capital structure complexity and firm performance Review of Behavioral Finance Pub Date : 2023-03-28 Hardeep Singh Mundi
Purpose The paper aims to examine the effect of CEOs' social networks on capital structure complexity (CSC) and firm performance. Design/methodology/approach Ordinary Least Squares regression (OLS) and Generalized method of moments (GMM) regression results estimate the effect of CEOs' (Chief executive officer) social networks on capital structure complexity and firm performance. The number of sources
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The asymmetric effect of COVID-19 on investor sentiment: evidence from NARDL model Review of Behavioral Finance Pub Date : 2023-01-10 Mehdi Mili, Asma Yahiya Al Amoodi, Hana Bawazir
Purpose This study aims to investigate the asymmetric impact of daily announcements regarding COVID-19 on investor sentiment in the stock market. Design/methodology/approach This study uses a Non-Linear Autoregressive Distribution Lag (NARDL) model that relies on positive and negative partial sum decompositions of the Coronavirus indicators. Five investor sentiments had been used and the analysis is
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Ambiguity and asset prices: a closer look in an emerging market Review of Behavioral Finance Pub Date : 2023-01-03 Merve G. Cevheroğlu-Açar, Cenk C. Karahan
Purpose This study empirically documents the effect of ambiguity on stock returns in a major emerging market along with the ambiguity attitudes under various market conditions. Design/methodology/approach Ambiguity is measured as the volatility of return probability distributions extracted from high frequency intraday data via a method developed by Brenner and Izhakian (2018). The impact of ambiguity
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A market sentiment indicator, behaviourally grounded, for the analysis and forecast of volatility and bubbles Review of Behavioral Finance Pub Date : 2022-11-02 Clio Ciaschini, Maria Cristina Recchioni
Purpose This work aims at designing an indicator for detecting and forecasting price volatility and speculative bubbles in three markets dealing with agricultural and soft commodities, i.e. Intercontinental Exchange Futures market Europe, (IFEU), Intercontinental Exchange Futures market United States (IFUS) and Chicago Board of Trade (CBOT). This indicator, designed as a demand/supply odds ratio, intends
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Tone complexity and the cost of debt retrospective data from the USA Review of Behavioral Finance Pub Date : 2022-10-28 Fatimazahra Bendriouch, Imad Jabbouri, Harit Satt, Zineb Jariri, Mohamed M'hamdi
Purpose This paper explores the impact of tone complexity on the cost of debt in the USA. Design/methodology/approach A sampling from 692 publicly nonfinancial-traded companies in the USA is employed over the period between 2010 and 2018. Generalized methods of moments (GMM) model is implemented to examine the impact of tone complexity on the cost of debt and its implications upon creditors and users
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Empirical evidence of attribute framing: the case of unsophisticated IPO investors Review of Behavioral Finance Pub Date : 2022-09-09 Albert Rapp
Purpose The purpose of this paper is to investigate the empirical relevance of attribute framing in the financial marketplace. Design/methodology/approach Incorporating a sample of German initial public offerings (IPOs) from 2010 to 2019, the author uses quantitative methods, including regression models and tests for the equality of means, to analyze whether unsophisticated investors are susceptible
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The association between financial literacy confidence and financial satisfaction Review of Behavioral Finance Pub Date : 2022-09-06 Blain Pearson, Thomas Korankye
Purpose This study examines the association between financial literacy confidence and financial satisfaction. The authors posit that overconfident poor performers will experience greater levels of financial satisfaction and underconfident high performers will experience lower levels of financial satisfaction. Design/methodology/approach Based on the results of an objective financial literacy assessment
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Can downside-risk measures help to explain the reluctance of households to invest in XTFs? An empirical study using the SHS-base Review of Behavioral Finance Pub Date : 2022-08-18 Hans Philipp Wanger, Andreas Oehler
Purpose The purpose of this paper is to investigate whether downside-risk measures help to explain why households largely refrain from investing in Exchange Traded Funds that replicate broad and internationally diversified market indices, so-called XTFs, although studies frequently recommend to do so. Design/methodology/approach The paper analyzes whether evaluating risk in terms of downside-risk measures
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CIO equity compensation and IT investment: the moderating role of board monitoring and evidence of managerial myopia Review of Behavioral Finance Pub Date : 2022-08-15 Serdar Turedi, Asligul Erkan-Barlow
Purpose The purpose of this paper is to examine the effects of managerial myopia on information technology (IT) investment. Specifically, it aims to investigate the influence of chief information officer (CIO) compensation on IT investment and the moderating role of the board monitoring strength on this relationship. Design/methodology/approach The study examines a sample of 194 firms listed on US
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Household stock market participation in South Africa: the role of financial literacy and social interactions Review of Behavioral Finance Pub Date : 2022-08-09 Kingstone Nyakurukwa, Yudhvir Seetharam
Purpose One of the most important phenomena that have been confronted in the field of household finance is the stock market participation puzzle. The puzzle describes the anomaly that the majority of households do not have ownership of stock market products, though empirically stocks give higher expected returns than risk-free assets. The stock market participation rate plays an important role as it
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The impact sporting and financial performance of football clubs on their stock price: an analytical study of European clubs sample listed in the financial market Review of Behavioral Finance Pub Date : 2022-08-04 Nazar Habeeb Abbas
Purpose The purpose of this research is to determine the nature of the relationship between sporting, financial performance and a stock price of football clubs by adopting the quarterly financial statements of the European clubs that represent the research sample: Juventus, Borussia Dortmund and Olympique Lyonnais, which helps clubs’ managers in evaluating the sporting and financial performance effect
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Socially responsible investment behavior: a study of individual investors from India Review of Behavioral Finance Pub Date : 2022-07-14 Renu Jonwall, Seema Gupta, Shuchi Pahuja
Purpose Socially responsible investment (SRI) is a niche and upcoming investment strategy in India. Very few researches have been conducted on SRI in the Indian context. This study identifies the SRI awareness level, attitude towards the importance of environmental, social, and governance (ESG) issues, willingness to invest in SRI avenues and obstacles in SRI investment decision-making by Indian retail
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Personality traits and behavioral biases of Indian financial professionals Review of Behavioral Finance Pub Date : 2022-07-12 H. Kent Baker, Sujata Kapoor, Tanu Khare
Purpose Financial professionals are increasingly important in the Indian financial system. Our study examines the association between the Big Five personality traits and Indian financial professionals' behavioral biases when making investment decisions. Design/methodology/approach After testing our questionnaire's reliability and validity, we used it to obtain the sample responses. We used multiple
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Management accountants' susceptibility to overconfidence: the overplacement perspective Review of Behavioral Finance Pub Date : 2022-06-29 Zack Enslin
Purpose Overconfidence bias is considered to be a very influential decision-making bias in the business environment. This paper aims to identify the susceptibility of management accountants to overconfidence-related overplacement bias and to determine its pervasiveness among these professionals. Design/methodology/approach Two international samples of management accountants were surveyed using overplacement
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Determinants of annual reports complexity in the United States of America: an application of the Tobit model Review of Behavioral Finance Pub Date : 2022-06-23 Fatimazahra Bendriouch, Imad Jabbouri, Mohamed M'hamdi, Harit Satt, Sara Katona, Rhita Serir
Purpose This paper explores the factors that shape the complexity of company annual reports in the USA. Using a general-to-specific modeling approach, this study examines the determinants of annual reports' tone complexity. Design/methodology/approach Negative relationships were found between agency problems and tone; agency costs and readability of annual reports; profitability and tone; and ownership
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Behavioural finance and cryptocurrencies Review of Behavioral Finance Pub Date : 2022-06-21 Antonis Ballis, Thanos Verousis
Purpose The present study sets out to examine the empirical literature on the behavioural aspects of cryptocurrencies, showing the findings of related studies and discussing the various results. A systematic literature review of cryptocurrencies in behavioural finance seems to be timely and particularly important in terms of providing a guide for future research. Key topics include an extent review
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The disposition effect and its manifestations in South African investor teams Review of Behavioral Finance Pub Date : 2022-06-20 Philani Shandu, Imhotep Paul Alagidede
Purpose The study endeavours to determine (1) whether the disposition effect exists among South African investor teams, (2) whether it is causally intensified by a set of psychosocial factors and (3) whether the disposition effect causally reduces investor welfare. Design/methodology/approach Following a natural field experimentation design involving a sample of investor teams participating in the
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Investor behavior and cryptocurrency market bubbles during the COVID-19 pandemic Review of Behavioral Finance Pub Date : 2022-06-06 Emna Mnif, Bassem Salhi, Khaireddine Mouakha, Anis Jarboui
Purpose Cryptocurrencies lack fundamental values and are often subject to behavioral bias leading to market bubbles. This study aims to investigate the contribution of the coronavirus pandemic to the creation of market bubbles. Design/methodology/approach This study identifies four major cryptocurrency market bubbles by using the Phillips et al. (2016) (hereafter PSY) test. Subsequently, the co-movements
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Short-run and long-run determinants of bitcoin returns: transnational evidence Review of Behavioral Finance Pub Date : 2022-06-03 Priti Dubey
Purpose Bitcoin has emerged as a phenomenal asset earning abnormal profits. However, the factors with predictability power over its price are not widely studied. Therefore, this study aims to explore the factors that determine bitcoin prices. The analysis explores the determinants belonging to four categories – macro economic, financial, technical and fundamental factors. Design/methodology/approach
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The impact of anchoring bias on investment decision-making: evidence from Ghana Review of Behavioral Finance Pub Date : 2022-06-02 Sally Peaches Owusu, Esther Laryea
Purpose The objective of this paper is to explore how anchoring affects the dynamics of investor decision-making with regard to mutual funds and how this bias differs amongst gender and level of financial knowledge. Design/methodology/approach An experimental research design was adopted to uncover the relationship between the variables under study; this involved the use of a questionnaire with an embedded
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Ramadan effect in the cryptocurrency markets Review of Behavioral Finance Pub Date : 2022-05-27 Carmen Lopez-Martin
Purpose This paper examines the effect of the holy month of Ramadan on the returns and conditional volatility of cryptocurrency markets. Design/methodology/approach The closing prices of six cryptocurrencies have been considered. The study employs different classical tests for checking if the efficiency behaviour is similar during Ramadan celebration days and non-Ramadan days. Besides, dummy variable
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Predatory trading: ethics judgments, legality judgments and investment intentions Review of Behavioral Finance Pub Date : 2022-05-13 Daphne Sobolev, James Clunie
Purpose Predatory trading is a stock market trading technique in which certain market participants exploit information about other market participants' need to trade. Predatory trading often harms others. Hence, this paper examines the determinants and effects of financial practitioners' and lay people's judgments of predatory trading. Specifically, it investigates how the public availability and reliability
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Judgments of ethically questionable financial practices: a new perspective Review of Behavioral Finance Pub Date : 2022-05-13 Daphne Sobolev, James Clunie
Purpose Research has suggested that ethics judgments should be made from an impartial perspective. However, people are often partial about their money. This study aims to investigate the extent to which perspectives – the perspective of those who can gain from the use of a financial practice and the perspective of those who can incur losses due to it – affect lay people’s ethics and legality judgments
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Do economic crises cause trading in Bitcoin? Review of Behavioral Finance Pub Date : 2022-04-05 Jinsha Zhao
Purpose The paper provides new evidence for Bitcoin’s safe-haven property by examining the relationship between currency price, return and Bitcoin trading volume. Design/methodology/approach A unique dataset from a person-to-person (p2p) exchange is used to investigate association between Bitcoin trading volume and currency prices. Currency returns are used to identify local economic crises, the 8
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Firm-specific sentiment and individual option's implied volatility slope Review of Behavioral Finance Pub Date : 2022-03-29 Bei Chen, Quan Gan
Purpose Previous literature shows that market sentiment and the steepness of index option's implied volatility slope have a negative relation. This paper investigates the relation between firm-specific sentiment and individual option's implied volatility slope both theoretically and empirically. Design/methodology/approach The authors develop a simple model with option traders' sentiment heterogeneity
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Trading behavior of Swedish retirement investors during the COVID-19 pandemic Review of Behavioral Finance Pub Date : 2022-03-28 Johannes Hagen, Amedeus Malisa, Thomas Post
Purpose How did investors in the Swedish Premium Pension System (PPS) react to the stock market shock ignited by the COVID-19 pandemic? Design/methodology/approach The authors use fund-level data from the Swedish Pensions Agency on investment choices in the PPS. For each fund, the authors use monthly information on the number of investors and holdings' market value up to November 2020. The authors
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An experimental investigation of the “follow own signal” decision rule under increased information uncertainty Review of Behavioral Finance Pub Date : 2022-03-14 Ming Tsang, Adam Stivers
Purpose This study aims to examine individuals' tendency to strictly follow their own signal while ignoring predecessors' decisions when making decisions under varying degrees of uncertainty. Design/methodology/approach Using a controlled laboratory experiment, the authors separate the follow-own-signal behavior from other types of behavior such as Bayes consistent or herd-like (i.e. follow-the-majority)
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Forecasting foreign exchange rates as group experiment: actuality bias and fact-convergence effect within wisdom of crowds Review of Behavioral Finance Pub Date : 2022-03-14 Haruo H. Horaguchi
Purpose This article examines the accuracy and bias inherent in the wisdom of crowd effect. The purpose is to clarify what kind of bias crowds have when they make predictions. In the theoretical inquiry, the effect of the accumulated absolute deviation was simulated. In the empirical study, the observed biases were examined using data from forecasting foreign exchange rates. Design/methodology/approach