The COVID-19 Pandemic and Overconfidence Bias: The Case of Cyclical and Defensive Sectors

Azam, Md Qamar; Hashmi, Nazia Iqbal; Hawaldar, Iqbal Thonse; Alam, Md Shabbir; Baig, Mirza Allim

doi:10.3390/risks10030056

Cited by 15 publications

(12 citation statements)

References 47 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The connection between these two schools of thought is referred to as a "traditionalist" relationship in the negative sense and a "revisionist" relationship in the positive sense. According to this point of view, there will be a positive association between environmental performance and financial success up to the level of environmental performance at which economic advantages will be at their highest level (Ayesha et al, 2022;Azam et al, 2022;Gregory, 2022).…”

Section: Environmental Disclosure and Firm's Performancementioning

confidence: 99%

The impact of environmental disclosure and the quality of financial disclosure and IT adoption on firm performance: Does corporate governance ensure sustainability?

Jiang

Qamruzzaman

2023

Front. Environ. Sci.

View full text Add to dashboard Cite

Introduction: The study’s motivation is to investigate the role of environmental and financial disclosure, IT adoption, and good governance on firms’ sustainability from 1990–2019. A sample of 75 financial institutions enlisted in Bangladesh’s capital market was considered for relevant data collection.Methodology: Secondary data sources were used for data accumulation, including annual reports of target FIs, economic review reports, and central banks publication. Several econometrical techniques have been implemented to document the empirical nexus and the elasticities of explained variables on firm performance.Findings: In terms of baseline assessment, the study revealed a positive and statistically significant association between a firm’s sustainability and target explanatory variables. Furthermore, the study extended the empirical valuation by implementing a system-GMM and documented a positive linkage between financial and environmental disclosure, IT adaptation, good governance, and the firm’s performance sustainability.Discussion: These study findings suggest that information symmetry, investor protection, and access to financial services foster and stabilize the firms’ performance. Concerning corporate governance’s mediating effect, the study established a mediating role with positive influences on financial performance augmentation. On the policy ground, the study postulated that financial policymakers should address fairness and integrity in disclosing information to the public. Enforcement has to be initiated to ensure good governance.

show abstract

Section: Environmental Disclosure and Firm's Performancementioning

confidence: 99%

The impact of environmental disclosure and the quality of financial disclosure and IT adoption on firm performance: Does corporate governance ensure sustainability?

Jiang

Qamruzzaman

2023

Front. Environ. Sci.

View full text Add to dashboard Cite

show abstract

“…It is worthwhile to utilize when it is more accurate than projections based on mechanically adding up the expenses of shutting down various sectors of the economy. Furthermore, as seen by widespread lockdowns and restrictions to prevent new infections, the outbreak has had a significant effect on the economic slowdown, unemployment (Uddin and Alam, 2021;Azam et al, 2022), The motivation of this study is to seek the impact of uncertainties and emittances on household consumption with the inclusion and exclusion of covid effects in empirical estimation. The study has taken into account three panels of data which are sub-grouped according to income level that is lower-income countries (LIC), Lower-middle income countries (LMIC) and Upper-Middle-Income Countries (UMIC), respectively, for the period 1996-2020.…”

Section: Introductionmentioning

confidence: 99%

Nexus between uncertainty, remittances, and households consumption: Evidence from dynamic SUR application

Yin

Qamruzzaman²,

Xiao³

et al. 2022

Front. Environ. Sci.

View full text Add to dashboard Cite

Household consumption induces aggregated economic activities by pushing market demand, capital accumulation and financial growth in the economy; on the other hand, instability in household consumption adversely affects the overall economic progress. Thus, exploring the key determinants responsible for household consumption instability is essential. The motivation of the study is to gauge the role of pandemic uncertainties and remittance inflow on household consumption in lower, Lower-middle, and Upper-Middle-income Countries for the period 1996 to 2020. The study employed several econometrical tools, including a panel cointegration test with the error correction term, dynamic SUR. The panel unit root test following CADF and CIPS documented variables are stationary after the first difference, and long-run associations are confirmed with the panel cointegration test. The coefficient of Dynamic Seemingly Unrelated Regression exposed pandemic uncertainties and has a negative impact on household consumption in all three-panel estimations; however, the coefficient of PUI is more prominent with COVID-19 effects. Remittances’ role in household consumption was positive and statistically significant, suggesting migrant remittances encourage additional consumption among households. On the policy aspect, the study proposed that the government should undertake macro policies to manage policy uncertainties so that the normal course of consumption level should not be interrupted because household consumption volatility creates discomfort in aggregated development. Moreover, efficient reallocation and remittance channels should be ensured in the economy; therefore, efficient institutional development has to be confirmed.

show abstract

“…However, during the COVID-19 phase overconfidence bias was more pronounced in IT and Pharma sectors along with metal, media, and realty sector. The study also found out that overconfidence bias has no influence in the energy sector (Azam, Hashmi, Hawaldar, Alam & Baig, 2022). Focusing on the determinants of overconfidence bias it was found that all the cognitive biases influence overconfidence bias and illusion of control is the most influencing variable (Ul Abdin, Qureshi, Iqbal & Sultana, 2022).…”

mentioning

confidence: 85%

Investors’ Overconfidence in the Stock Market

Ganesh

Thiyagarajan

Vasudevan

et al. 2023

CJFA

View full text Add to dashboard Cite

An investor would normally depend on technical or/and fundamental analysis to make his/her investment decision in the secondary market. But in most cases the investor may not have time to do these analyses, understand the market or stock and then make the decision, therefore, they often end up taking irrational decisions. In some cases, the investors take these irrational decisions on the basis of the overconfidence they have concerning the information they possess. These investors are termed to bear overconfidence bias. The study aims to examine the influence of overconfidence bias in the Indian stock market. The study employed Vector Autoregression (VAR) methodology and impulse response function to know how long the bias persists in the market once the overconfidence bias is influenced by the investor. The results of the study show enough evidence to point out the influence of overconfidence bias in the market and it persists for more than 110 days. The study also finds out Efficient Market Hypothesis does not hold good. Our study period includes the time period since globalization of the Indian stock market and it also covers several periods of stress including the global financial crisis of 2007–08 and COVID-19 period.

show abstract

The COVID-19 Pandemic and Overconfidence Bias: The Case of Cyclical and Defensive Sectors

Cited by 15 publications

References 47 publications

The impact of environmental disclosure and the quality of financial disclosure and IT adoption on firm performance: Does corporate governance ensure sustainability?

The impact of environmental disclosure and the quality of financial disclosure and IT adoption on firm performance: Does corporate governance ensure sustainability?

Nexus between uncertainty, remittances, and households consumption: Evidence from dynamic SUR application

Investors’ Overconfidence in the Stock Market

Contact Info

Product

Resources

About