• Management & Information Systems Review
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• v.26
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• pp.117-132
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• 2008

This study examined the individual investors' Behavior and proposed the research task how significant difference within and among investor's personality types. First of all, we investigated factors that influence individual investor's investment behavior, such as, openness, will to achieve, self-monitoring. As result investors who have lately five number of holding stock are more dependent on openness and will to achieve.

• Journal of East Asia Management
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• v.3 no.1
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• pp.41-55
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• 2022

This study investigates whether foreign investors' behavior is involved in firm-specific investor sentiment. Because the mixed role of foreign investors on investor sentiment formation seems to exist in the Korean stock market, it needs to examine the moderate or incremental effect of foreign investors on the stock price crash risk which is due to investor sentiment. The analysis results using Korea Stock Exchanges - listed firms for the period of 2011-2019 show the increased future stock price crash risk which is attributable to high investor sentiment is mitigated for firms with the high foreign ownership, indicating the moderate effect. This study expands the literature on the foreign investors' behavior in the Korean stock market, by showing foreign investors are not involved in firm-specific investor sentiment, which improves market's efficiency in the Korean stock market. Also, the paper is valuable to the academic and practice field in that the findings shed light on the foreign investors' mitigating role in stock price crashes in the behavioral finance perspective.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.9
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• pp.351-360
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• 2022

This study aims to determine the factors that can influence investors in selecting stocks in the Indonesian capital market to establish an optimal portfolio, and find phenomena that occurred during the COVID-19 pandemic so that buying interest / the number of investors increased in the Indonesian capital market. This study collection technique uses primary data obtained from the survey questionnaire and secondary data which is market data, stock price movement data sourced from the Indonesia Stock Exchange, Indonesian Central Securities Depository, and Bank Indonesia, as well as empirical literature on behavior finance, investment decision, and interest in buying stock. The method used in this research is the survey questionnaire analysis with the SEM (statistical approach). The results of the analysis using SEM show that investor behavior influences the stock-buying interest, investor behavior, and the stock-buying interest influences investor decision-making. However, risk management does not influence investor-decision making. This occurs when the investigator's psychological capacity produces more decision information by decreasing all potential biases, allowing the best stock selection model to be selected. When the investigator's psychological capacity creates more decision information by reducing biases, the optimum stock selection model can be chosen.

• Journal of Distribution Science
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• v.13 no.11
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• pp.31-37
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• 2015

Purpose - This study is an effort to assess the role of behavioral biases in investment decision making, specifically for mutual funds, and the moderating role of the investor. Individual investment behavior is concerned with choices about purchasing various securities. However, behavioral finance disputes the concept of perfect rationality and identifies psychological factors and their impact on decision-making. Research design, data, and methodology - A survey questionnaire was designed and used to collect responses using a judgmental sampling technique from 290 investors in the Gwalior Region. Cronbach's Alpha, factor analysis, and linear regression were all used to test the influence of behavioral biases on investment decision. Results - We found that the behavioral biases have a positive impact on investment decisions. Conclusions - This study's results identified three factors influencing investor behavior(rationale, investment skills, and profit making) and four factors influencing investor decisions (profit maker, market analysis, investment plan, seller). The overall results of the study also show that there is no significant relationship between investor behavior and investment decisions by gender in the market.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.285-294
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• 2021

The most basic forces of stock market are supply and demand, which increases or decreases on the basis of information. The crucial point is that investor's perception is depending on the availability of information at a particular time. But it is very difficult to understand what they take from a piece of information, and the decision varies from person to person; hence, it is important to understand the behavior of investors in the stock market. In this context, this study is focusing on behavioral investor-type diagnosis testing among financial market players (FMPs) in Oman. The study conducted a review of behavioral types among stock market investors, and attempted to assess the influence of age and gender factors on investor bias. It classifies investor type biases according to the gender and age of respondents. This study employs primary data with a structured questionnaire distributed to an equal number of male and female stock market investors in Muscat Securities Market. The study used sample t-test, one-way ANOVA, CATPCA and ALSCAL to identify the significant difference among age, gender and experience of the respondents. The present study found that all of the investors are influenced by different cognitive biases and, moreover, it depends on investor's gender.

• Management & Information Systems Review
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• v.32 no.3
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• pp.83-105
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• 2013

There are many literatures about the herding behavior of institutional investors but there is lack of literatures about the relation among several investor groups consisting of institutional investors. So we investigate the relation among sub-institutional investor groups like bank, insurance companies, pension funds using KRX intraday trading data of 2009. As the result, we find that foreign, individual, and securities firm investors trade in the opposite direction of other investor groups including pension funds. And pension, insurance, asset management, private equity funds, other companies, government, and banks are cross-mimicking each other, so we conclude that these investors make herding behavior. In 2009 institutional investors except securities firms make herding in a short period, and insurance, asset management, pension funds and other companies make herding and self-mimicking in all period, but there is no herding and mimicking after foreign investors.

• Journal of Distribution Science
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• v.20 no.9
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• pp.73-81
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• 2022

Purpose: This study aimed to examine whether key audit matters (KAMs) readability influences investor reaction. Research design, data, and methodology: The signaling theory was applied to explain the behavior of investors when they receive useful information for their decisions. Data were collected from 1,866 firm-year observations from Thai listed companies in both the Stock Exchange of Thailand (SET) and the Market for Alternative Investment (MAI) for the fiscal years of 2016-2019. The study was based on secondary data, which were collected from the SET Market Analysis and Reporting Tool (SETSMART) database and the Stock Exchange of Thailand's website (www.set.or.th). A statistical regression method was used with panel data analysis to evaluate possible associations between KAMs readability and investor reaction. The study relied on popular readability measures (Fog Index). Moreover, investor reaction was measured by absolute cumulative abnormal return and abnormal trading volume. Results: It was found that the KAMs readability has positive significance on both absolute cumulative abnormal return and abnormal trading volume. Conclusion: This study showed a significant contribution to the implication of KAMs in an emerging economy. The results reveal that more readable KAMs disclosure distributed new insights and useful information to investors and led to reducing the information gap between auditors and investors.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1231-1240
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• 2021

A shift in perspective from standard finance to behavioral finance has taken place in the past two decades that explains how cognition and emotions are associated with financial decision making. This study aims to investigate the influence of various psychological factors on investment decision-making. The psychological factors that are investigated are differentiated into two aspects, cognitive and emotional aspects. From the cognitive aspect, we examine the influence of anchoring, representativeness, loss aversion, overconfidence, and optimism biases on investor decisions. Meanwhile, from the emotional aspect, the influence of herding behavior on investment decisions is analyzed. A quantitative approach is used based on a survey method and a snowball sampling that result in 165 questionnaires from individual investors in Yogyakarta. Further, we use the One-Sample t-test in testing all hypotheses. The research findings show that all of the variables, anchoring bias, representativeness bias, loss aversion bias, overconfidence bias, optimism bias, and herding behavior have a significant effect on investment decisions. This result emphasizes the influence of behavioral factors on investor's decisions. It contributes to the existing literature in understanding the dynamics of investor's behaviors and enhance the ability of investors in making more informed decision by reducing all potential biases.

• Journal of the Korean Data and Information Science Society
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• v.25 no.1
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• pp.107-117
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• 2014

The main purpose of this study is to propose a portfolio investment strategy based on investor types information. For improvement of investment performance, artificial intelligence techniques are used to construct a portfolio. Among many artificial intelligence techniques, cluster analysis is applied to select securities and genetic algorithm is applied to assign the respective weight within the portfolio. Empirical experiments in the Korean stock market show that proposed portfolio investment strategy is practicable and superior strategy. This result implies that analysis of investor's trading behavior may assist investors to make an investment decision and to get superior performance.

• The Journal of the Korea Contents Association
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• v.19 no.9
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• pp.242-253
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• 2019

There has been a large literature on bank liquidity risk since the 2008 global financial crisis because liquidity risk was at the heart of the crisis. However, there is no study that investigates whether the level of investor protection influences liquidity risk-taking behavior of banks. Therefore, this study aims to explore the relationship between investor protection and liquidity risk as well as to provide policy implications. Using a panel dataset of commercial banks in 21 OECD countries, we found that strong investor protection encourages banks to take lower liquidity risk. Furthermore, this positive role of shareholder protection is more prominent during a crisis, implying that legal protection of investors plays an essential role in bank stability while market discipline is largely ineffective due to extensive government guarantees in turbulent times.