The Behaviour of Small Investors in the Hong Kong Derivatives Markets: A Factor Analysis

Hon, Tai-Yuen

doi:10.3390/jrfm5010059

Cited by 12 publications

(10 citation statements)

References 18 publications

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“…Lim (2012), Bakar and Yi (2016) find that investors' decisions are significantly affected by overconfidence. Moreover, Hon (2012) concluded that small investors in the Hong Kong Stock Market were overconfident. Longjie and Anfeng (2017) find a positive correlation between overconfidence and investment level in the Chinese Stock Market.…”

Section: Literature Reviewmentioning

confidence: 99%

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Factors influencing Individual Investor Behaviour: Evidence from the Kuwait Stock Exchange

Abul¹

2019

ASS

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This study investigates the effects of psychological factors on investor behaviour regarding the Kuwait Stock Exchange (KSE). These psychological factors are, namely: excessive optimism vs pessimism, herd behaviour and risk appetite. The data for this study obtained from KSE and a survey of a random sample of 398 individual investors. By using qualitative analysis and based on the theory of behavioural finance, the study findings show that herd behaviour, optimism and psychology risk have an impact on the individual investors’ decisions. However, we did not find any evidence of overconfidence behaviour’s effects on investors’ decisions. To our knowledge, KSE has been examined by several researchers without taking into consideration the effects of psychological factors on individual investor decisions. This study finds that psychological factors play a significant role in individual investors’ decisions regarding KSE. This study might contribute positively to the development of this field of research in (KSE).

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Section: Literature Reviewmentioning

confidence: 99%

“…Moreover, herd behaviour has been found in numerous stock markets around the world, including advanced and Asian stock markets (Chiang and Zheng, 2010). Hon (2012) found that small investors in the Hong Kong Stock Market follow herd behaviour. Choi and Skiba (2015) find herd behaviour in 41 stock markets around the world.…”

Section: 2mentioning

confidence: 99%

Factors influencing Individual Investor Behaviour: Evidence from the Kuwait Stock Exchange

Abul¹

2019

ASS

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“…Such factors can become a major block or motive for their decision to trade with derivatives. These factors are identified by observing the study result of Hon (2012). Using factor analysis, he identified five factors that capture the behaviour of small investors in derivatives markets in Hong Kong.…”

Section: Behavioral Factorsmentioning

confidence: 99%

Client driven trading strategies: A practical modeling in the context of financial derivatives market

Aravind¹

2019

Serb J Management

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Wide ranges of financial instruments are available in an emerging market like India. Considering multiple investment alternatives the ordinary investors may not be in a position to choose the right investment option. This situation imposes them to seek the service of an investment advisor to choose a suitable investment decision. While observing the Indian derivative market; the market participants, especially Low Net worth Individuals (LNI) are highly resorting to the advice of their depository participants (DP) for their investment modeling. The diversified background of investors also enhanced the complexity of the advisor's job. Because the investment strategy opted

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“…As a result, anomalies were formed in the market. Hon (2012), in his work, investigated the behavior of small investors operating in derivative markets in Hong Kong. The time period of the study is between 2011-2012.…”

Section: Literature Reviewmentioning

confidence: 99%

Determining the Factors Affecting Individual Investors’ Behaviours

Divanoğlu¹,

Bağcı²

2018

IJOL

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Behavioral finance is precisely non-rational behavior of market investors. Behavioral finance theory shows that investors make investment decisions rationally, by intermittent change from the past and that investment decisions can be taken under the influence of some psychological factors. This theory shows how human behaviors are effective in the functioning of investment decisions and that investment decisions can be made in nonrational behaviors. People are determined to invest under the influence of emotions and personal intuitions with models based on rational behavior and investment behaviors. Whether individuals are rational in the economic decision-making process is one of the key points of debate and it seems quite complex to be able to demonstrate this. This study will focus on individuals (investors), one of the economic decision makers. Socioeconomic factors, as well as psychological factors, influence the risk that investors perceive in the decision-making process of individual investors. The purpose of this study is to identify stimuli that affect individual investors' drivers of financial investment decisions and to consider it in terms of behavioral finance. For this purpose, an individual investor questionnaire has been determined in the field which has previously been validated and reliable. This questionnaire was applied to 200 employees working in private and public banks operating in Aksaray and 177 people were provided feedback. In the case of Aksaray, it has been determined which stimulants are under the influence of predictions, estimates, emotions, personal intuitions, psychological and sociological behaviors of investment decision-making individuals.

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The Behaviour of Small Investors in the Hong Kong Derivatives Markets: A Factor Analysis

Cited by 12 publications

References 18 publications

Factors influencing Individual Investor Behaviour: Evidence from the Kuwait Stock Exchange

Factors influencing Individual Investor Behaviour: Evidence from the Kuwait Stock Exchange

Client driven trading strategies: A practical modeling in the context of financial derivatives market

Determining the Factors Affecting Individual Investors’ Behaviours

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