Investors’ trading activity: A behavioural perspective and empirical results

Kourtidis, Dimitrios; Šević, Željko; Chatzoglou, Prodromos D.

doi:10.1016/j.socec.2011.04.008

Cited by 108 publications

(92 citation statements)

References 60 publications

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“…One venue of research may involve the framing effect (Kahneman and Tversky, 1979). Previous research has chiefly examined relationships between personality traits and risk preference (Harms et al, 2012;Kourtidis et al, 2011;Zhao et al, 2010). Future research may want to explore whether this effect is due to reliance on external information (e.g., the frame) or whether it represents a general tendency among individuals with different personality traits.…”

Section: Discussionmentioning

confidence: 99%

Relevant information, personality traits and anchoring effect

Caputo

2014

IJMDM

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Abstract:Although personality has been one of the most-studied factors in management and decision-making research, this stream of research has generated inconsistent support for the relationship between personality traits and individuals' susceptibility to heuristics, and therefore biased judgment. The aim of this study is to investigate how the provision of correct information and individual difference factors influence susceptibility to anchoring effect. To test this hypothesis, individual levels of the personality traits have been measured. Then, participants were provided with an anchoring task involving the Taj Mahal either providing them correct information before the experiment or not. Providing individuals with the correct information limited susceptibility to the irrelevant anchor; even if only 33% of those exactly recalled it when providing the estimate. High values in agreeableness and openness to experience were found to be related with reduced susceptibility to the anchor.

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Section: Discussionmentioning

confidence: 99%

Relevant information, personality traits and anchoring effect

Caputo

2014

IJMDM

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“…Some of the issues regarding the pricing of assets cannot be addressed without reference to the behavioural finance theory. Criticism by De Bondt, Muradoglu, Shefrin, and Staikouras (2008) and Kourtidis, Sevic, and Chatzoglou (2011) put against the neoclassical economics model. Particularly, the efficient market hypothesis is that market participants are homo-sapiens and not homo economics.…”

Section: The Theory Of Behavioural Financementioning

confidence: 99%

“…De Bondt et al (2008) and Kourtidis et al (2011) argue that there is a necessity to understand the psychology of market participants in order to provide an explanation of market abnormalities, such as asset price bubbles and crashes, and comprehend the efficiency of the financial markets. Kourtidis et al (2011) stated that the obvious existence of irrational market participants making random transactions in the market can only be adequately explained by taking account of behavioural factors.…”

Section: The Theory Of Behavioural Financementioning

confidence: 99%

“…Kourtidis et al (2011) stated that the obvious existence of irrational market participants making random transactions in the market can only be adequately explained by taking account of behavioural factors. As discussed by Barberis and Thaler (2003), the impact on the price from these irrational market participants can be long-lasting and significant.…”

Section: The Theory Of Behavioural Financementioning

confidence: 99%

See 1 more Smart Citation

The impact of regime-switching behaviour of price volatility on efficiency of the US sovereign debt market

Masood

Aktan

Gavurová

et al. 2017

Economic Research-Ekonomska Istraživanja

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This article focuses on the asset price volatility at the stock exchange that result from the regime switching behaviour in the market. This study is devoted to the question about how the asset price volatility affects the US sovereign debt market. The efficient market hypothesis has been a base for the asset pricing. This hypothesis is discussed in this study. The review of the literature reveals nuances of behavioural finance theory, and allows us to better understand the regime switching behaviour in the market. The object of empirical study is the US sovereign debt market. We use the Markov Regime-Switching ARCH (SWARCH) model to analyse data. The results show that there is high volatility regime in both the 2012 and 2017 bonds US market, which significantly affects bond prices.

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“…In another classification, these factors can be divided into common and uncommon factors. Common factors include financial, psychological, social and demographic characteristics and uncommon factors include advertising, brand awareness, diversity of goals, inflation, economic expectations and stock market (Shafiee et al, 2016;Brown and Taylor, 2014;Gherzi et al, 2012;Kourtidis et al, 2011). The present study is intended to evaluate the impact of common factors on the behavioral finance of investors; these factors are divided into three categories: financial, psychological, and social.…”

Section: Determinants Of Behavioral Financementioning

confidence: 99%

Empirical Analysis of the Financial Behavior of Investors with Brand Approach (Case Study: Tehran Stock Exchange)

Nouri

Motamedi

Soltani

2017

Annals of the Alexandru Ioan Cuza University - Economics

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Behavioral science in the field of finance and investment is among new topics raised in recent years. The relationship between financial sciences and other fields of social sciences such as financial psychology has caused researchers to do many researches regarding the behavior of investors in the financial markets and their reactions to different situations. Based on the theories of financial behavior, shareholders' decision to buy and sell stocks is under the influence of internal and external psychological factors. Through designing and experimental testing of the model of investors' financial behavior in the Tehran Stock Exchange with an emphasis on brand, this study was an attempt to investigate the influence of these factors. To this end, financial, psychological and social factors were considered as the most important external factors influencing the behavior of investors and, considering the mediating role of brand awareness, their impact on perceived risk and perceived return as well as investment intention was tested. The research population consisted of all individual investors in the Tehran Stock Exchange. In order to determine the sample size, considering unlimited population, Cochran formula was used and hence the sample size was determined to be 145. For data collection, standard questionnaire was used. Confirmatory factor analysis was used to test the reliability of the questionnaire and the research hypotheses were tested using path analysis. The results showed that psychological factors have a positive impact on perceived risk and returns. Financial factors had a positive impact on perceived risk but no impact on perceived return. The impact of social factors on perceived risk and perceived return was not confirmed. Moreover, the results showed that brand awareness has a moderating role in the relationship between social factors and perceived risk and return. However, its moderating role was not confirmed in the relationship between the psychological and financial factors and perceived risk and return. Perceived risk had a positive effect on attitude toward the brand. However, the impact of perceived return on attitude toward the brand was not significant. Finally, the attitude toward the brand had a positive effect on shareholders' investment intention.

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Investors’ trading activity: A behavioural perspective and empirical results

Cited by 108 publications

References 60 publications

Relevant information, personality traits and anchoring effect

Relevant information, personality traits and anchoring effect

The impact of regime-switching behaviour of price volatility on efficiency of the US sovereign debt market

Empirical Analysis of the Financial Behavior of Investors with Brand Approach (Case Study: Tehran Stock Exchange)

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