Behavioral Portfolio Theory

Akkaya, Murat

doi:10.1007/978-3-030-70281-6_3

Cited by 3 publications

(2 citation statements)

References 19 publications

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“…The behavioral portfolio theory was postulated by Shefrin and Statman in 2000 (Akkaya, 2021). This theory provides an alternative to the assumption made in the modern portfolio theory that investors make rational decisions when choosing their portfolio of investment to ensure that they maximize the value of their portfolios.…”

Section: Behavioral Portfolio Theorymentioning

confidence: 99%

Insurance Opportunities and Challenges in a Crypto Currency World

Kajwang¹

2022

IJTS

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Purpose: The study analysed the insurance opportunities and challenges in a cryptocurrency world. Materials and Methods: The research methodology used in this study consisted of a systematic literature review of previous studies from different scholars, that have discussed on insurance opportunities and challenges in the cryptocurrency world or research topic related to the study topic. This research method was preferred since it is quite reliable, cost-saving and time-saving as compared to primary research methods. This study relied more on online journals, articles and published work from libraries since they provide easy access to secondary information/data. Results: The results indicated that the reviewed studies had conceptual and contextual gaps. This is because most of them discussed on blockchain technology and smart contracts as the only components in the cryptocurrency market that insurance firms have tapped into. In addition, some of these studies have discussed on the opportunities and challenges in the real estate market and healthcare systems or a specific type of insurance firm rather than the bigger picture of the insurance industry. Unique contribution to the theory, practice and policy: The theories discussed in this study will be beneficial to the researchers and scholars since it gives a better understanding on the application of these theories to insurance and the cryptocurrency world. The researchers and scholars will also find this study relevant considering that studies on insurance opportunities and challenges in a cryptocurrency world are quite scarce. This study will provide a good literature base for their studies. Moreover, the identified research gaps in this study will act as a motivation to the different researchers and scholars to conduct more studies on related topics, thus bridging the research gaps on insurance opportunities and challenges in a cryptocurrency world. The study will provide a better understanding to the management of the insurance companies, on how they can invest on the various opportunities available in the cryptocurrency market. Further, the policymakers in the insurance industry will also benefit from the discussion on challenges that arise from adoption of blockchain technology and smart contract, as they implement various policies that promote growth of the insurance industry.

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Section: Behavioral Portfolio Theorymentioning

confidence: 99%

Insurance Opportunities and Challenges in a Crypto Currency World

Kajwang¹

2022

IJTS

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“…Investors' decisions to invest their capital are based on their perceptions of the gains and losses involved. As per the theory's statement, investors have the irrational tendency to take less risk on their profits than on the perceived losses (Kahneman and Tversky, 1979; Akkaya, 2021). As a natural human behavior, an investor would confide more on the profitable outcomes of an investment that are perceived as more secured.…”

Section: Theoretical Framework and Literature Reviewmentioning

confidence: 99%

A nexus of market web traffic and investor's behavior in the EdTech market: evidence of performance from US and India

Sethi

Saxena

Singh

2022

BIJ

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PurposeThe unexpected outbreak of COVID-19 has expedited the trend toward online education. To facilitate undisruptive learning, EdTech companies are continuously working on providing solutions to restore teaching and learning practices. This has caused a significant behavioral shift of the investors in the EdTech market. This study aims to analyze the effects of Web Market Traffic on the increased number of investors funding an EdTech Company in the market.Design/methodology/approachBy drawing on the multi-method web analytics approach, this study analyses the nexus between Web Market Traffic and Investor's Behavior in the US and India, proving the hypothesized relationship in the proposed Model using a data sample of 300 EdTech Players.FindingsThere is a significant difference between the investor's behavior in India and the US. This study shows that the investors in the US are more inclined towards investing in EdTech companies in comparison to India. The Results demonstrate that monthly visits of consumers and the number of acquisitions by players positively affect the investor's behavior, while bounce rates take a toll on the number of investors.Practical implicationsThis Study suggests that EdTech investors in the US and India should harness Web Traffic to capture the EdTech market. Further, this study offers practical implications that EdTech players can use to attract potential investors and increase brand visibility by improving web market traffic parameters.Originality/valueThis paper's original contribution is to empirically shed light on the effects of web market traffic on the investor's behavior. The study emphasizes the quintessentiality of managing the bounce rates and monthly visits for an EdTech market to attract more investors and capital inflow that enhance brand visibility. The study found that the investors behave distinctly in the developed and emerging markets in the US and India.

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Impact of Tunisian Political and COVID-19 Crisis on Asset Allocation: Traditional Theory of Portfolio Selection Versus Behavioral Theory

Jaber

2023

Wseas Transactions on Business and Economics

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Investing in the financial market is a way to grow wealth. This investment undoubtedly generates a return accompanied by a certain level of risk. In finance, risk occupies a crucial place in the stock market. Indeed, it intervenes in the process of choice and selection of the portfolio. Investment decisions can be tricky from time to time and require further thought. The achievement of judicious investment is based on a knowledge of the financial market evolution, the behavior of investors as well as techniques of portfolio management. Multitudes of strategies have been implemented over time to effectively manage the portfolio. Within this framework, various strategies have been implemented such as modern portfolio theory (MPT) and behavioral portfolio theory (BPT). We concentrate on portfolio optimization for two alternative approaches: the MVT and the BPT. This study aims to compare portfolios generated by these two approaches during political and COVID-19 crisis periods using data from the Tunisian stock market exchange for the period 2009 –2022. The results show that in the case of a higher degree of risk aversion induced by investors’ BPT, all the stock is located at the top right of the mean-variance frontier. However, during the crisis, the portfolios selected by rational investors were not systematically selected by irrational investors, even if the optimal portfolio of BPT coincides with the Markowitz efficiency frontier. The results indicate that the crisis induces simultaneously an increase in risk and a sharp decrease in the portfolio return of individuals who follow the mean-variance theory of Markowitz.

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Behavioral Portfolio Theory

Cited by 3 publications

References 19 publications

Insurance Opportunities and Challenges in a Crypto Currency World

Insurance Opportunities and Challenges in a Crypto Currency World

A nexus of market web traffic and investor's behavior in the EdTech market: evidence of performance from US and India

Impact of Tunisian Political and COVID-19 Crisis on Asset Allocation: Traditional Theory of Portfolio Selection Versus Behavioral Theory

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