Questioning the Rationality of Individual Stock Market Investors in the 4.0 Era

Danarti, Tyas; Maskie, Ghozali; Kaluge, David; Sakti, Kresna

doi:10.2991/aebmr.k.200606.075

Cited by 2 publications

(2 citation statements)

References 6 publications

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“…Information enables investors to manage risks associated with investment decisions ( Heukelom, 2007 ). Investment decision making is a continuous effort to reduce the level of uncertainty/risk, and acquisition of good information and proper analysis of information can help the process ( Danarti et al, 2020 ). Individual investors’ presence in the stock market is increasing.…”

Section: Information That Individual Investors Usementioning

confidence: 99%

Integration of ESG Information Into Individual Investors’ Corporate Investment Decisions: Utilizing the UTAUT Framework

Park

2022

Front. Psychol.

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Environmental, Social, and Governance (ESG) criteria are now considered significant, global non-financial evaluating factors of corporate value. However, no attention is given to what influences the integration of ESG information by individual investors in their investment decisions. This study first identifies different types of information investors use to make investment decisions. Risks identified in information integration in investment decision making is reviewed. Next, the Unified Theory of Acceptance and Use of Technology (UTAUT) model is used to identify individual investors’ investment tendencies and the factors affecting integration of ESG information into investment decisions. Each of four categories for UTAUT innovation adoption factors (performance expectancy, effort expectancy, social influences, and facilitating conditions) are discussed in relation to how they affect individual investors’ integration of ESG information. Standardization of ESG reporting and evaluation frameworks would reduce efforts to adopt ESG information and could build a strong foundation for facilitating ESG information integration. Corporates’ efforts to further communicate their ESG management through their investor relations and active governmental well as non-governmental organizations’ participation are recommended.

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Section: Information That Individual Investors Usementioning

confidence: 99%

Integration of ESG Information Into Individual Investors’ Corporate Investment Decisions: Utilizing the UTAUT Framework

Park

2022

Front. Psychol.

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“…The analysis of the works of various authors (Danarti et al, 2020;Shankar & Shashidhara, 2019) and their research results revealed that all the factors that determine the irrational behavior of investors can be divided into two groups:…”

Section: Literature Reviewmentioning

confidence: 99%

Investigation of the Herding and Contrarian Behaviour of Investors

Maknickienė

Masėnaitė

Stasytytė

et al. 2021

International Scientific Conference „Contemporary Issues in Business, Management and Economics Engineering"

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Purpose – The paper analyses two different paradigms of investor behaviour that exist in the financial mar-ket – the herding and contrarian behaviour. The main objective of the paper is to determine which pattern of investor behaviour better reflects the real changes in the prices of financial instruments in the financial markets. Research methodology – Algorithms of technical analysis, deep learning and classification of sentiments were used for the research; data of positions held by investors were analysed. Data mining was performed using “Tweet Sentiment Visualization” tool. Findings – The performed analysis of investor behaviour has revealed that it is more useful to ground financial decisions on the opinion of the investors contradicting the majority. The analysis of the data on the positions held by investors helped to make sure that the herding behaviour could have a negative impact on investment results, as the opinion of the majority of investors is less in line with changes in the prices of financial instruments in the market. Research limitations – The study was conducted using a limited number of investment instruments. In the future, more investment instruments can be analysed and additional forecasting methods, as well as more records in social networks can be used. Practical implications – Identifying which paradigm of investor behaviour is more beneficial to rely on can offer ap-propriate practical guidance for investors in order to invest more effectively in financial markets. Investors could use investor sentiment data to make practical investment decisions. All the methods used complement each other and can be combined into one investment decision strategy. Originality/Value – The study compared the ratio of open positions not only with real price changes but also with data obtained from the known technical analysis, deep learning and sentiment classification algorithms, which has not been done in previous studies. The applied methods allowed to achieve reliable and original results.

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Questioning the Rationality of Individual Stock Market Investors in the 4.0 Era

Cited by 2 publications

References 6 publications

Integration of ESG Information Into Individual Investors’ Corporate Investment Decisions: Utilizing the UTAUT Framework

Integration of ESG Information Into Individual Investors’ Corporate Investment Decisions: Utilizing the UTAUT Framework

Investigation of the Herding and Contrarian Behaviour of Investors

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