• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.10 no.3
• /
• pp.161-170
• /
• 2015

Recently the fund has been popular for the representative financial investment. In the decision making procedure of the investor about this fund investment, this research analyze how the factor was considered as fund investing behavior. The paper examines investors' risk reduction behavior and fund choice attribution for fund investment behavior, provides insight for marketing strategy in fund market for fund investment behavior. The period for the survey is from December 2014 to January 2015 and analyzed 431 samples of using a fund investor The research results showed that fund distribution, fund literacy and fund performance appeared to be statistically significant variables that positive affected fund investment satisfaction, but fund advertise negative affected fund investment satisfaction. Also, the fund management company, benefit, fund literacy, fund performance, and recommend appeared to be statistically significant variables that positive affected fund investment intention. It is expected that fund marketing strategy based on research return should be established to cope with the fund literacy as well as the fund investing behavior. Concretely to fund investment satisfaction make informed decision in fund performance, fund information provided to investor should be customized to contribute the improvement of overall fund literacy.

• Journal of Distribution Science
• /
• v.13 no.10
• /
• pp.51-56
• /
• 2015

Purpose - This study examines Chinese P2P investment decision processes from a behavioral economics approach. Research design, data, and methodology - We analyze the online P2P investment product purchase decisions of 241 respondents in China, March 2015 to May 2015. T-tests were conducted to determine whether the framing effect influenced investor investment preferences. The Association Rule was used to identify the framing effect of respondent demographic characteristics on joint decisions regarding stable or risky investment products. Results - There are significant differences between the two groups (positive framing and negative framing) and their product-choosing behavior. In the positive framing group, female investors, young investors, investors with non-financial occupations and with limited or no experience, preferred stable P2P investment products. In contrast, in the negative framing group, investors with extensive investment experience preferred risky investment products. Conclusions - The framing effect influences investor choices in online P2P investment products. It is necessary to implement comprehensive supervision and full information disclosure regarding P2P investment products. P2P investment websites can also adopt different marketing strategies according to investor gender and age.

• Asia-Pacific Journal of Business
• /
• v.13 no.4
• /
• pp.135-149
• /
• 2022

Purpose - The primary objective of this article is to investigate the impact of U.S. monetary policy on institutional / individual / foreign investor reactions in the Korean stock market. Design/methodology/approach - This study employs a high frequency event study methodology to identify U.S. monetary policy shocks and quantify the impact of identified shocks on investor reactions. The dependent variable in the regression model is net stock purchase, while the explanatory variables are U.S. monetary policy shocks. The model is estimated for the period 2000-2019, including 156 FOMC meetings. Findings - Foreign investors immediately sell stocks in response to contractionary U.S. monetary shocks. They do not, however, react to anticipated changes in monetary policy rates, confirming the rationality of foreign investors. Individual investors demonstrate the opposite response, indicating that a non-trivial proportion of individual investors are irrational. Research implications or Originality - This study adds to the current literature on the effect of U.S. monetary policy on the Korean stock market. This study demonstrates a heterogeneous response to U.S. monetary policy shocks, validating the rational investment behavior of foreign investors, while individual investors exhibit a certain degree of irrationality. Methodologically, this study adds to the literature by quantifying the impact of U.S. monetary policy employing a sharper identification method allowing a simple and consistent estimation.

• Journal of Korea Society of Industrial Information Systems
• /
• v.21 no.5
• /
• pp.73-83
• /
• 2016

NAVER provides search frequency data of search terms via its DataLab service (http://datalab.naver.com/). Using this data, this paper examines the relation between the search frequency of firm's name and its future stock returns. Our results show that the search frequency of firm's name is a new investor attention measure, which is different from previously explored attention measures such as extreme returns, turnover, etc. Firms that go through higher search frequency this week tend to have higher returns in the next week. We do not find return reversal in the long run for the firms with higher search frequency. Furthermore, the extent to which search frequency affects stock returns becomes more pronounced following market-wide attention grabbing events. Our results indicate that search frequency incorporates information for future stock returns.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.5
• /
• pp.707-715
• /
• 2021

This article examines the potential impact of the Covid-19 Lockdown on earnings manipulation and stock market sensitivity to earnings announcements. It also explores the effects of earnings manipulation after the COVID-19 outbreak on the share price sensitivity to the earnings disclosures. The study uses a quantitative method to analyze the financial data consisting of 87 firms listed on the Iraq Stock Exchange for the period from 2018 to 2020, which constitutes a total of (174 observations). We used Ohlson (1995) model to estimate financial market reaction and sensitivity to earnings manipulation fluctuations and accounting information. The results show that companies practice earnings manipulation to maintain earnings over a time series, which means a negative impact of earnings manipulation on all earnings measures' value relevance (EPS, BVS, and CFS). Accordingly, earnings manipulation negatively influences investor behavior in the financial market, based mainly on financial reporting. The value relevance of financial reports has also decreased because of the COVID-19 outbreak and related economic Lockdown. These results reflect a long-term adverse impact of earnings manipulation on investor behavior and financial statements reliability.

• The Journal of Asian Finance, Economics and Business
• /
• v.9 no.4
• /
• pp.299-306
• /
• 2022

Entrepreneurs with behavioral finance biases are more likely to make irrational or financially detrimental decisions. Understanding financial behavior biases can assist in making sound financial decisions. Behavioral finance is a new topic that can assist researchers in better understanding investor behavior and preferences while purchasing and selling stocks. Using measures such as independent t-tests and average Likert five-point scale scores, this study seeks to determine how entrepreneurs make investment decisions and whether gender makes a difference. The study is empirical, and data from 1000 entrepreneurs were collected through convenience sampling. The study's main findings show that there are numerous factors to consider while investing in stocks, including family planning, children's education, investment security, and recurring income. Both men and women attempt to invest in many asset classes, but certain investments are extremely risky, while others are low risk. As a result, investors should assess risk based on their age and experience rather than their gender; this indicates that an investment in venture capital has nothing to do with gender but everything to do with the investor's age.

• The Korean Journal of Financial Management
• /
• v.20 no.2
• /
• pp.127-150
• /
• 2003

This study analyzes how capital market comovement can affect investors' decision making. We first analyze time-varying correlation coefficient between stock indices of U.S.A. and Korea. and then, using our empirical results, attempt to draw implications on investors' behavior. We find that the tendency of comovement between Korea and U.S.A. equity returns has considerably increased after the financial crisis of late 1997. Through the analysis of investors' behavior, we find that foreign investors, contrary to ITC's (Investment Trust Company) and individual investors, buy more shares in Korean markets as American stock prices go up. Foreign investors employ dynamic hedging strategy and give more weight on global economic factors than domestic ones. Our empirical results as a whole imply that investment behavior of foreign investors is most closely related to comovement of U.S.A. and Korea capital markets.

• Information Systems Review
• /
• v.22 no.1
• /
• pp.33-57
• /
• 2020

Although cryptocurrency which can promote innovation in the blockchain ecosystem is published for many useful purposes, in Korea, cryptocurrency is recognized only as a means of investment for the profit. The fact emphasizes only the speculative nature of the cryptocurrency, so investor negates the fundamental purpose of cryptocurrency and hinders innovation in the blockchain ecosystem. The purpose of this study is to investigate the cause of cryptocurrency perception and speculative behavior of domestic cryptocurrency investors from an academic perspective. We use a model that reflects the traditional considerations and cryptocurrency's characteristics in investment. Using the model, we can explain the cause of misperception of cryptocurrency through the theory of bounded rationality. In building the research model, we use variables of venture and angel investor's consideration used in investment decisions and collect the keywords from indexes of whitepaper to reflect the properties of cryptocurrency. This study mentions that, due to the imitations presented by Simon, individuals are forced to perceive cryptocurrency as a means of speculation and to make irrational decisions that impair ecosystem health. We analyze whether there is a significant difference in rationality in decision made by the sample under limited knowledge and imperfect information constraints. As a result, imperfect information constraints led investors to consider only irrational criteria in decision making. From this result, this study suggests that information asymmetry needs to be relaxed so that investment can be pursued together with rational investment and development of blockchain ecosystem. In addition, the industry can capture strategic insights for successful financing through ICO by enabling better understanding of investor decision-making.

• Management & Information Systems Review
• /
• v.39 no.3
• /
• pp.83-98
• /
• 2020

This study analyzes how investors' irrational behavior (or pessimistic sentiment) affects stock market returns and investors' market activity using mass media that delivered public information from January 1998 to December 2012 as a sample. According to pessimistic investor theory, investor pessimism leads to downward pressure on the price of equity capital, thereby making market sentiment pessimistic and lowering market yields. It also shows that investor pessimism increases transaction costs in the market, which in turn dampens investors' trading activities. In other words, pessimistic reporting on public information disseminated by mass media induces investors to act irrationally, eventually having a direct impact on the stock market. This study conducted an empirical analysis of the existing theoretical and empirical studies using domestic mass media as a sample. First, the study revealed a negative correlation between pessimistic reporting and returns as well as excess returns, while it did not show statistically significant results. Second, evidence has been suggested that pessimistic sentiment in the stock market has a negative impact on future pessimistic reporting by mass media. Third, the analysis of the impact of pessimistic reporting on investors' market activity using proxy variables for various market activities found that pessimism dampens market activity, while it did not show statistically significant results. It is assumed that low statistical significance is due to the fact that sample collection was carried out on a monthly basis. While the results of the study have low statistical significance, statistical signs support predictions of the theory.

• Journal of the Korean Statistical Society
• /
• v.3 no.1
• /
• pp.31-57
• /
• 1974

The economic behavior of individuals' selection of particular kye and positions in a kye is based upon choice criteria. The selection of a kye or a position in a kye is not the same as an investor's portfolio selection. A kye member combines in varying degrees the characteristics of both a borrower and a lender of funds. In the following sections we shall first propose choice criteria for borrowers and lenders of funds, then we will try to test various hypotheses derived from the choice criteria by empirical data.