Purpose This paper aims to examine the stock return behaviour around the bonus issue announcements in eight emerging markets for 2010–2019 by addressing the signalling, cash substitution and liquidity hypotheses. Design/methodology/approach Besides using the standard event study technique to test the presence of an anomaly, country-based regression analyses are performed. Firm-specific factors are

Purpose Much of the author’s understanding of experimental asset market bubbles is based on the Smith, Suchanek and Williams (SSW) design. The purpose of this paper is to find alternative bubble-producing designs, which is a promising path for new insights. Design/methodology/approach The Smith et al. (1988) experimental design has been widely used to study bubbles. This paper introduces a novel modification

Purpose The authors study the explanatory power of investor rationality and irrationality for value and momentum portfolios. We also examine the relationships during financial crisis events, namely, the US subprime mortgage crisis (2007–2009) and the European debt crisis (2011–2013). Design/methodology/approach This study examines the influence of investors’ rationality and irrationality on the US

Purpose This paper focuses on the influence of social, cultural and religious factors on investors' attention. In particular, the authors examined if the attention-grabbing mechanism works on Sundays, that is, if the Italians' Sunday activities and habits lead to a lower attention to second-hand financial news, compared to Saturdays. Design/methodology/approach The authors analyzed the market reaction

Purpose This study examines individual ambiguity attitudes alone and in groups by leveraging the descriptive model of anchoring and adjustment on decision-making under ambiguity. The study extends Ellsberg's probability ambiguity to outcome ambiguity and examines decisions made under both ambiguities, at different likelihood levels and under the domain of gains and losses. Design/methodology/approach

Purpose This paper examines the relationship between volatility, sentiment and returns in terms of levels and changes for both lower and higher data frequencies using quantile regression (QR) method. Design/methodology/approach In the first step, the study applies the Granger causality test to understand the causal relationship between realized volatility, returns and sentiment as levels and changes

Purpose The study aims to show that ambiguity aversion exerts a non-negligible effect on the investors' decisions, especially due to the possibility of sharp declines in stock prices. Design/methodology/approach The vast majority of previous studies on life-cycle consumption and asset allocation assume that the equity premium is constant. This study evaluates the impact of rare disasters that shift

Purpose This study is a pioneer in the academic literature to investigate the relationship between Valentine’s Day and stock market returns of major economies around the world. Design/methodology/approach Specific control variables for Valentine's Day are introduced to eliminate the potential influence of other effects. Findings The findings indicate that stock returns are higher on the days when Valentine's

Purpose This paper investigates whether individual investors are attentive to stock splits and whether higher split ratios (stronger private information signals) reduce the disposition effect. Design/methodology/approach This study employs stock split events and transaction data in the Indonesia Stock Exchange (IDX) from January 2004 to December 2017. The authors measure individual investors' attention

Purpose The purpose of this study is to examine a mechanism through which subjective financial literacy can exert negative effects on the retirement saving intention and behaviors, which has not been well understood in prior research. Particularly, the authors draw on the relevant risk literature to introduce financial risk tolerance and risk perception as important mediators that transfer subjective

Purpose The current study proposes an integrative framework for examination of determinants of stock returns in US market based on the five-factor Fama and French (FF) model, macroeconomic variables and investor sentimental factors. The study is based on both value weighted and equally weighted monthly portfolio returns of all CRSP firms which are incorporated in the United States and listed on the

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