Toward the Development of Client‐specified Valuation Models

Baker, H. Kent; Haslem, John A.

doi:10.1111/j.1540-6261.1974.tb03102.x

Cited by 59 publications

(40 citation statements)

References 9 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…(For a good review, see Haugen 2001. ) Following suggestions that a behaviour-oriented approach would be useful in this research, a wider range of variables has been introduced to model preferences, perceptions, and expectations in asset demand (Baker and Haslem 1974, Baker, Hargrove and Haslem 1977, Lewellen, Lease and Schlarbaum 1977, Blume and Friend 1978, Statman and Caldwell 1987, Nagy and Obenberger 1994. For example, it has been shown that apart from traditional utility considerations like risk aversion and the mean and variance of returns, financial decision-making is affected by the individual's lifestyle characteristics, control orientation, and occupation (Barnewell 1987).…”

Section: Introductionmentioning

confidence: 98%

A multi-dimensional decision framework to support corporate bond investment

Liao

Cheung

2012

Journal of Decision Systems

View full text Add to dashboard Cite

This paper constructs a multi-dimensional decision framework to support investment in corporate bonds. The Analytic Hierarchy Process (AHP) is first customized to accommodate six fundamental criteria governing investor behaviour. It is then shown that, after pairwise comparison of criteria and asset alternatives at appropriate framework levels, a set of weights can be calculated to prioritize the different bonds and allocate wealth over a portfolio which is best in terms of judgmental conformity with the individual's investment goal and investment criteria. Apart from the practical advantages following from ready operationalization and computation, our framework is analytically grounded on the Nobel Prize-winning paradigms of bounded rationality and rational expectations. In particular, an index can be obtained to test for sufficient decision consistency on the part of the bounded-rational individual, and a method is offered to rationally and operationally model changes in investor preferences, perceptions, and expectations under market dynamics and the impact of such changes on the demand for corporate bonds.

show abstract

Section: Introductionmentioning

confidence: 98%

A multi-dimensional decision framework to support corporate bond investment

Liao

Cheung

2012

Journal of Decision Systems

View full text Add to dashboard Cite

show abstract

“…Early studies examine the determinants influencing individual investor behavior, based on economic perspectives. Results find some crucial determinants on corporate accounting information (Nagy & Obenberger, 1994), including expected dividends (Baker & Haslem, 1974;Nagy & Obenberger, 1994;Clark-Murphy & Soutar, 2004), long-term growth (Nagy & Obenberger, 1994), financial stability (Baker & Haslem, 1974;Clark-Murphy & Soutar, 2004), and future expectations (Baker & Haslem, 1974;Nagy & Obenberger, 1994).…”

Section: Digital Informationmentioning

confidence: 99%

“…Digital information is a crucial determinant in individual investment decision-making (Clark-Murphy & Soutar, 2004;Nagy & Obenberger, 1994;Baker & Haslem, 1974). Early studies examine the determinants influencing individual investor behavior, based on economic perspectives.…”

Section: Digital Informationmentioning

confidence: 99%

Information Searches Development in Investment Decisions

Tseng¹

2012

IJBM

View full text Add to dashboard Cite

How do individuals develop information searches under uncertainty? It is a crucial question attracting a number of studies on investment decision-making. Information on financial measures and advice seeking information are two usual studied variables in financial investment decision-making. This study extends the information search aspects to discuss heuristics reliance, a simplified information search method, on individual investment choices. We further examine the moderating effect of income on our extended information search model. 378 investors with investment experiment from financial holding companies were surveyed and the multiple-group structural equation modeling was employed. Reporting on two dimensions of stocks/options and mutual funds investment, the findings show that individuals with more risk aversion tend to seek more information. Heuristics have a strong positive influence on financial investment preferences. A mass of digital information through more advice-seeking information search and heuristics reliance can increase investor interest in mutual fund investments. We clarify income differences in individual information searches in investment decision-making. The findings imply that (1) the movement to teach financial students to recognize investor psychology might be required to be more extensive, and (2) provision of financial information for different income groups may be needed, and meantime investor psychology is suggested to be taken into serious consideration.

show abstract

“…ER investors are usually considered to be more knowledgeable about the investing process and fi nancial markets. SR investors tend to have three important goals: (1) to boycott fi rms deemed socially irresponsible; (2) to promote environmental causes; and (3) to advance social agendas, 5,6,8 whereas non-SR investors do not subscribe to these three goals. SR investors tend to boycott socially irresponsible companies; this is usually determined on the basis of personal moral philosophy and ethical principles.…”

Section: Investing Goalsmentioning

confidence: 99%

“…In this paper, we consider two dimensions for these goalseconomic and social. Economic goals most often cited by investors include maximizing returns, increasing fi nancial wealth, 6 achieving returns relative to standard benchmarks and personal satisfaction. 7 Investors who give greater importance to the above-mentioned goals are referred to as Economically Responsible (henceforth ER) in contrast to others who will be referred to as non-ER investors.…”

Section: Investing Goalsmentioning

confidence: 99%

Not everybody wants to save the world

Kashyap

Iyer

2009

J Financ Serv Mark

View full text Add to dashboard Cite

A consumer lens is used to examine investing behavior in this study. The study focuses on the importance given by investors to their economic and social investing goals (SIG). This approach redirects managerial attention from the investment to the investor and investing goals . The study fi nds that differences in environmental attitude, social investing effi cacy, materialism, religiosity and protected values can explain disparities in investing goals. The fi ndings suggest a segmentation approach based on differences in antecedent effects and economic and SIG.

show abstract

Toward the Development of Client‐specified Valuation Models

Cited by 59 publications

References 9 publications

A multi-dimensional decision framework to support corporate bond investment

A multi-dimensional decision framework to support corporate bond investment

Information Searches Development in Investment Decisions

Not everybody wants to save the world

Contact Info

Product

Resources

About