Beyond information: Disclosure, distracted attention, and investor behavior

Hillenbrand, Adrian; Schmelzer, André

doi:10.1016/j.jbef.2017.08.002

Cited by 17 publications

(4 citation statements)

References 58 publications

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“…Generally speaking, an individual investor wants to invest in companies with a solid financial and social reputation (Helm, 2007). A company builds its reputation by disseminating several cues through financial and nonfinancial information (Hillenbrand and Schmelzer, 2017). Investors may choose to invest wisely by using company signals such as corporate reputation (Kannadhasan, 2015).…”

Section: Mediating Effect Of Corporate Reputationmentioning

confidence: 99%

The Effects of ESG issues on investment decision through corporate reputation: Individual investors’ perspective

Rounok

Qian²,

Alam³

2023

IJRBS

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Whether investors take into account a company's environmental, social, and governance (ESG) issues when making investment decisions (ID), how they interpret corporate reputation (CR) as a result of ESG issues, and whether CR mediates the relationship between ESG issues and ID are the goals of this study. The theory of planned behavior (TPB) and the signaling theory are the bases of the framework. The study was based on a questionnaire survey that received 599 responses from active retail investors in two Bangladeshi cities, Dhaka and Chattagram. The PLS path modeling method was used to analyze the data and test the hypothesis. The empirical findings reveal that corporate ESG issues considerably impact ID and that CR mediates this relationship. This study contributes to behavioral finance by offering empirical proof of the relationship between company ESG issues and investment decisions. By examining the indirect effects of ESG issues on ID via CR, this study contributes to the body of knowledge. It is therefore advised that strategic managers be required to use ESG practices as it builds reputation. At the same time, the government should create public policies, orders, and rules for upholding the ESG issues that contribute to the sustainable development of the capital market and the economy.

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Section: Mediating Effect Of Corporate Reputationmentioning

confidence: 99%

The Effects of ESG issues on investment decision through corporate reputation: Individual investors’ perspective

Rounok

Qian²,

Alam³

2023

IJRBS

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“…Azam and Kumar (2011) conducted study upon the factors that affect investors' decisions and found that macroeconomic variables, such as growth rate of earnings per share, foreign direct investment, and gross domestic product, significantly influence companies' share prices on the KSE (Caracas Stock Exchange). Financial statements play crucial role in informing the stakeholders and investors about a company's financial health, thereby heavily influencing investors' choices (Hillenbrand & Schmelzer, 2017). Various academics have studied the characteristics of investors' personalities and found that issues in their relationships with other investors and firms greatly influence the investor behavior (Bucciol & Zarri, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

Assessment of Investors' Investment Behaviour: Mediating Effect of Risk Tolerance: A Case of Pakistan Stock Exchange

Patras¹,

Rasool²,

Idrees

2023

JSRD

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This study aims to investigate the role of risk tolerance as a mediator in the investment choices of retail investors on Pakistan Stock Exchange. Research addresses criticisms of the descriptive theories in behavioral economics and emphasizes the importance of understanding factors that impact consumers' financial decisions for a more efficient and stable financial system. The study analyzes organizational, personal, and market factors to determine relative significance. Sample for this study consists of individual investors actively trading on Pakistan Stock Exchange. The findings indicate that individual investors' investment behavior is mainly swayed by market factors, personal characteristics, and organizational context. Study findings hold value for various stakeholders, including investors, brokerage companies, managers, and government officials. By utilizing these findings to inform their decision-making processes, these stakeholders can make more informed choices. Thus, understanding the role of risk tolerance and the influence of different factors contributes to development of a stronger and more knowledgeable financial system.

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“…As a result, information needs to be disclosed clearly and accurately and presented in a simple manner if it is to be effective (Loewenstein et al, 2014). Previous studies have examined the impact of disclosure on various types of financial decision-making, including mutual fund investments (Hillenbrand and Schmelzer, 2017), payday borrowing (Bertrand et al, 2017), peerto-peer lending (Chen et al, 2020) and equity-based crowdfunding (Li et al, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Information disclosure and credit card repayments: evidence from Malaysia

Hamid

Loke

2021

IJBM

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PurposeThis study analyzes the role of information disclosure in influencing credit card repayments by focusing on three intervention methods for improving repayment decisions among credit cardholders.Design/methodology/approachThis study uses the survey method to collect data. Four questionnaires are designed to identify which types of disclosure elicit better repayment decisions among credit cardholders. The participants were approached using the mall intercept method, and a total of 1,775 responses were obtained.FindingsEstimations using means comparison tests show that not providing minimum payment information improves repayments. The expected benefits are not delivered by the provision of higher minimum payment information or additional information that highlights the negative effects of making the minimum repayment only. Further analysis using logit estimation reconfirms the benefit of not providing minimum payment information. However, when such information is given, low minimum payment information elicits better repayment decisions than high minimum payment information or additional information. Repayment worsens under the additional information condition compared to the high minimum payment condition.Research limitations/implicationsThe findings of this study have a bearing on the decisions of policy makers, credit card issuers and consumers.Originality/valueThis paper clarifies the role of information in improving debt repayment decisions.

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Beyond information: Disclosure, distracted attention, and investor behavior

Cited by 17 publications

References 58 publications

The Effects of ESG issues on investment decision through corporate reputation: Individual investors’ perspective

The Effects of ESG issues on investment decision through corporate reputation: Individual investors’ perspective

Assessment of Investors' Investment Behaviour: Mediating Effect of Risk Tolerance: A Case of Pakistan Stock Exchange

Information disclosure and credit card repayments: evidence from Malaysia

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