Advanced As

8/2/2019 Advanced As

1/31


2/31

2 The

Diversificatio

n Stategyof

EuropeonBanks:

determinantsand Effects onEfficiency and

Profitability

20

00

Landi

Andrea

and

VenturelliValeria

Positively

related to

Efficiency.

AnImpressive

growth ofbankrevenue

from

Securityand

insurance

business

hasobserved.

3 Product

Diversification in the

European

BankingIndustry: Risk

and Loan

Pricing

Implications

20

05

Lepetit,

Nys,Rous,

Tarazi

investigat

e therelationsh

ip

betweenbank risk

and

product

diversification in

thechangingstructure

of the

Europeanbanking

industry

Banks

which haveexpanded

into

noninterestincome

activities

present a

higherlevel of

risk thanbankswhich

principally

supplytraditional

intermediat

ionactivities.


3/31


4/31

6 Behavior of

IndianInvestor: A

Market

Research

20

11

Akash Jau

hari

Classical

theoriesdo not

fully

explain oraccount

for the

Actual

trades andmovemen

ts of thestockindices


5/31

7 Investment

Behavior and

the Negative

Side ofEmotion

20

05

Baba

Shiv,

George

Loewenstein

In

contrast

to the

historically

dominantview ofemotions

as a

negativeinfluence

in human

behavior

(Peters &Slovic,

2000),

recentresearchin

neuroscie

nce andpsycholog

y has

highlighted

the

positive

rolesplayed by

emotions

indecision

making

When

normal

participants

and controlpatients

either wonor lostmoney on

an

investmentround, they

adopted a

conservativ

e strategyand

became

morereluctant toinvest on

the

subsequentround;

these

resultssuggest

that they

were more

affectedthan target

patients by

theoutcomes

of

decisions

made in theprevious

Rounds.

decisions under

uncertainty and

decisions under

ambiguitydraw upon

different neuralprocesses, sothat emotion is

disruptive

in one case butnot the other.

research needs to

determine the

circumstances

in which emotionscan be useful or

disruptive, andthen the reasonedcoupling of

circumstances and

emotions canbe a guide to

human behavior.


6/31


7/31

1

0

BOYS WILL

BE BOYS:

GENDER,

OVERCONFIDENCE,

ANDCOMMONSTOCK

INVESTMEN

T

BRAD M.

BARBER

AND

TERRANCE

ODEAN

in areas

such as

.nance,

men aremore

overcon.dent thanWomen.

Thus,

theorypredicts

that men

will trade

moreexcessivel

y than

women.

men trade

45 percent

more than

women.Trading

reducesmens netreturns by

2.65

percentagepoints a

year as

opposed to

1.72percentage

points for

women.1

1

The investor

behavior andfutures

market

volatilityA theory and

empirical

study based

on the OLGmodel and

high-frequency data

20

11

Yun

Wang,Renhai

Hua,

Zongcheng Zhang

investors

havemomentu

m

tradingmode and

reversal

trading

mode,this study

isintroducing a two-

period

OLGmodel

into the

futuresmarket

and

construct

theinvestor

behavior

model

based onthe

futures

market

The two-

periodOLG

model

based onthe future

market is

consistent

with thepractical

situation;second, thesufficient

information

investorssuch as

institutiona

l adoptreversal

trading

patterns

generally;last, the

insufficient

information

investorssuch as

individual

investors

Investor

tradingbehavior is

always an

important issuein

the behavioral

finance and

marketsupervision,

but the relatedresearch isscarce.

Deep research on

trading modes ofheterogeneous

investors in

Chinesefutures market

plays a guidance

role to some

extent ininvestment

decision-makingandrelated market

supervision.


8/31

adopt

momentum

trading

patterns ingeneral

1

2

Momentum

and behavioralfinance

20

11

Ding Du re-

examinethe

sources of

momentum profits

by

focusing

onmomentu

m inmonthlyreturns.

Different

fromprevious

studies, it

is foundthat

momentum

may have

multiplesources,

and thatrisk orbehavioral

biases in

isolationmay not be

sufficient

to explainmomentum

.

researchers should

focus onmis-reaction to

common (market-

wide) informationto explain

momentum as

emphasized by Lo

andMacKinlay.


9/31

1

3 Investor

Attitudes and

Behaviortowards

Inherent RiskandPotential

Returns in

FinancialProducts

20

10

Shyan-

Rong

Chou,

Gow-Liang

Huang,Hui-LinHsu

Studing

attitudes

and

behaviortowards

investment risk todetermine

their

pastinvestmen

t

experienc

e as ananchor,

and to

recordtheirresponses

when

exposedto

economic

signals

no

difference

by gender

to investorpropensity

to take risk,nor incognitive

perception

of such.However,

higher

and lower

perceptionsof risk

were

indicatedbyinvestors

according

to theirpersonal

investment

experience.Investors

with little

experience

in stocksand

structured

notes werefound to

have

significantl

yheightened

perception

of risk. T

Based on the

evidence of

these findings,

to determine

investors risk

propensitythrough the useof variables

based on levels

experience isnot reliable

To find others of

concealed factors

on risk

propensity is asubject for future

study. The


10/31

1

4

Do Individual

Day Traders

Make Money?

Evidence fromTaiwan

20

04

Brad M.

Barber,

Yi-Tsung

Lee ,

analyze

the profits

earned on

allsubseque

nt tradesmade byinvestors

identified

as daytraders.

Though the

investigations

contained some

analyses ofthe profitability

of day trading,these analyseswere largely

limited to a

handful ofaccounts. For

example, the

North

AmericanSecurities

Administrators

Associationsponsored awidely cited

study of the

profitability of26 day traders

at All-Tech

brokerage, abrokerage that

catered to day

traders and was

a target of theSenate

investigations.

Drawingconclusive

inferences from

such a small

sample ofaccounts from

a brokerage

firm under

investigation isdifficult.


11/31

1

5

Risk and

decision

makin by

financeexecutives: a

survey study

20

07

Les

Coleman

addresses

biases

that are

related torisk

propensity, andcategorise

s them

under fiveheadings:

decision

makers

characteristics and

perceptio

n;referencelevels;

mental

accounting and the

assumptio

n ofmean

reversion;

the

longshotbias or

overconfi

dence;and the

desire for

immediat

egratificati

on.

Just over

half the

executives

provedwilling to

take a risk,and almosthalf the

variance in

their riskpropensity

was

explained

roughlyequally by

respondent

s:endowment, perception

of risks

role indecisions,

assessment

ofalternative

choices,

and

expectationof the

decisions

outcome.Manipulati

on of the

cases along

fourdimensions

varied the

decisions

facts, butthey

proved

onlymarginally

significant

to risktaking.

Unfortunately

the sample size

is too small to

permitstructural

equationmodelling

The

first is the need to

examine decisions

(and, byimplication, other

finance practices)in areal-world context

where subjects

follow theirnatural decision

styles, rather than

conforming to

norms imposed byexperimental

settings.


12/31

1

6Investorsbehaviour in

the

Athens StockExchange

(ASE)

20

07

Dimitrios

I.

Maditinos

, Z eljko

S evic

investigat

e the

various

methodsand

techniques used byGreek

investors

(bothprofessio

nal and

individual

s) whenevaluatin

g

potentialadditionsto their

investmen

tportfolios

.

The results

indicate

that ININ

rely moreon

newspapers/media andnoise in the

market

whenmaking

their

investment

decisions,while

professiona

l investorsrely moreon

fundamenta

l andtechnical

analysis

and less onportfolio

analysis

limited

knowledge

regarding

investmentdecision-

makingprocesses andconsumer

behaviour as it

applies to

financial assetsand services,

the possibilities

forfurther research

in this area,

particularly indevelopingmarkets, are

extensive.

conducting a

similar study in

different

internationalmarkets, both

those with thesamecharacteristics as

Greece and those

with markedlydifferent ones, to

compare the

results and

establishgeneralisability.

1

7

THE ROLE

OFFEELINGS

ININVESTOR

DECISION-

MAKING

20

05

Brian M.

Lucey,Michael

Dowling

surveys

theresearch

on theinfluence

of

investorfeelings

on

equitypricing.

whether

variations

infeelings

that are

widely

experienced by

people

While this

is anefficient

decision-making

tool and is

consistentwith our

knowledge

of howpeople

generally

make

decisions,it can result

in errors if

the investor

allowsirrelevant

mood

many of the

findings in thearea are

inconsistentwith

existing

theories of howinvestors

should make

investmentdecisions.

Deepen the breath

of investigationsinto the

relationshipbetween mood

proxy variables

and asset pricing.There has not yet

been sufficient

studyin this area to

allow anything

other than very

preliminaryconclusions to be

made about the

relationship

between moodand asset pricing.

There is a


13/31


14/31

1

1Overconfidence and Trading

Volume

20

03

Markus

Glaser

and

MartinWeber

overconfident

investors

will trademore than

rationalinvestors.

investors

who think

that they

are aboveaverage in

terms ofinvestmentskills or

past

performance trade

more.

Measures

ofmiscalibrati

on are,

contraryto theory,unrelated

to

measuresof trading

volume.

It is not known

whether

overconfidence

is a robustphenomenon

acrossseveral tasksthat are often

assumed to be

related

There are several

suggestions for

future research.

We measurevarious facets of

overcon-fidence:miscalibration, the

better than

average effect,illusion of control,

and unrealistic

optimism.

Numerous studiessuggest or argue,

at least implicitly,

that thesemanifesta-

tions of

overconfidenceare related

2

0 Information,

Overconfidence and Trading:

Do theSources of

InformationMatter?

20

11

Margarida

Abreu &

VictorMendes

the

strength

of thepositive

association between

frequencyof trading

and

information

acquisitio

n isdependent

on

investors

selfconfidence and

on the

sources ofinformati

on used

by

more

frequently

individualinvestors

invest ininformation

, the morethey trade

in financial

products.Our results

also

confirmprevious

findings

that

overconfident

investors,

who show

a betterthan

average


15/31

investors bias, trade

more

frequently

2

1

rading

Performance,Disposition

Effect,

Overconfidence,

Representative

ness Bias,

nd Experienceof Emerging

MarketInvestors

20

07

GONGM

ENGCHEN1

,

KENNETH A.

KIM2*,

JOHN R.

NOFSINGER3

andOLIVERM. RU

study

investment decision

making in

anemerging

market.

Chinese

investorssuffer from

three

behavioralbiases: (i)

they tend to

sell stocks

that haveappreciated

inprice, butnot those

that have

depreciatedin price,

consistent

with adisposition

effect,

acknowled

ging gainsbut not

losses. they

seem

overconfident; and (iii)

they appear

to believe

the existing

literature ondebiasing has

not

conclusivelyshown that

experience

leads to learned

rationalbehavior

The research can

be done on othercross_ cultural

environments.


16/31

that past

returns are

indicative

of futurereturns

2

2 TheInvestment

Behavior,

DecisionFactors and

Their Effects

Toward

InvestmentPerformance

in the TaiwanStock Market

Yu-JeLee,

Gao-

LiangWang,

Kae-Shu

Ching-

YawChen, an

Kao,Fong-Ping Zhu

How

investmen

t behavior

and

decision

factors

affect

performa

nces of

theTaiwan

stock

market.

investors

wouldprefer to

make

investmentamong the

companies

with high

credibility,larger in

size, highcash/stockdividends

and high

stock price(3H stocks)

or high risk

with highreturn.

strategy

selection is

less of aconsiderati

on for the

investors.


17/31

2

3

A study on

small

investors

behavior inchoosing

stockcase study:Kuala-Lumpur

stock market

20

11

Mohamm

ad Reza

Tavakoli

Baghdadabad1*,

FaridHabibiTanha2

and

NorehaHalid

to

identify

the key

determinants of

choosingstock bysmall

investors.

The

research

evidence

reveals 13effective

factors inchoosingstock

which can

influencesmall

investors

decisions

for stockselection.

These

factors arein order ofimportance

involving

financialstatements

of

companies,accounting

instruments

, past stock

price(return),

firms

publicinformation

,

profitabilit

y variables,consult

with

anybody,

financialratios, past

trading

volume ofstocks,

second-

handinformation

small sample

sizes, with

further research

in terms of in-depth

qualitative/andorquantitative

studies

required withlarger sample

sizes to

deal with any

issues in termsof making

inferences or

generalizationsregarding thepopulation as a

whole.

additional

qualitative small

investor

research across alarger sample will

facilitate theconfirmation/disconfirmation of the

importance of the

proposedinfluencing

variables on stock

selection to

identify abehavior pattern

for this group of

inventors;


18/31

resources,

discounted

cash-flow

tools,governmen

tpolicies,calculation

of risk and

economicvariable.

2

4

Economic

FactorsAnd

Individual

InvestorBehavior:

The Case Of

The Greek

StockExchange

20

04 Anna A.Merikas

Andre

George S.Vozikis,

as G.

Merikas,

DevPrasad

survey of

the

factors,

which

mostly

influence

individual

investor

behavior

in theGreek

stock

exchange.

there

seems to be

a certain

degree of

correlation

between

the factors

that

behavioral

financetheory and

previous

empirical

evidence

identify as

the

influencing

factors for

the average

equity

investor,and the

individual

behavior of

active

investors in

the Athens

Stock

Lack of

literaturereview

Future research

should attempt tovalidate the two

questions that this

paper addressed:First, what relative

importance do

decision variables

and especiallyeconomic decision

variables have forindividualinvestors making

stock purchase

decisions?Secondly, are

there

homogeneousclusters or groups

of variables that

form identifiable

decisiondeterminants that

investors rely

upon when

making stockinvestment

decisions?


19/31

Exchange

2

5

Predicting

IndividualInvestors

Intention to

Invest: AnExperimental

Analysis of

Attitude as

a Mediator

20

11

Azwadi

Ali

how

companies can

appreciate

fromhaving

strong

brand

equity intheir

efforts toencourageindividual

investors

to investin

their

stocks.

perceived

risk,perceived

returns and

trustdirectly

affect

individual

investorstrading

decisionswhileattitude

towards

brandpartially

mediates

therelationship

s. This

finding

suggeststhat, in

courting

individual

investors,companies

still need to

perform

The research

setting for thestudy was an

educational

institution andrespondents

were limited to

undergraduates

enrolled in theInvestment and

PortfolioManagementunit at a

university in

Victoria,Australia.

these

antecedentsexplain only a

portion of

the variances in

the attitudinalconstruct and

in the outcome

variable. There

may be otherfactors which,

although not

part

Some examples

includeinvestors risk

preference,

present economiccondition and the

different levels of

their financial

literacy.Therefore, future

research mayinclude thesesuggested

variables in order

toincrease the

robustness of the

findings.


20/31


21/31

experience in

making

investment

decisions.

2

7

Interactions of

IndividualsCompany-

Related

Attitudes andTheir Buying

of Companies

Stocks and

Products

20

08

Jaakko

Asparaand

Henrikki

Tikkanen

how an

individuals

company-

relatedattitudes,

his/her

tendency

tobuy/hold

thecompanys stocks,

and

his/hertendency

to

buy/usethe

company

s

productsare likely

to

interact.

the

leverageeffect is

ultimately

on thestock price

on

the

aggregatelevel. First,

individuals tendencyto buy the

products of

thecompany

will

increasethe sales

and

earnings

of thecompany,

resulting in

increasing

stock price,as

the stock

price is,

it does not

explicitlyaddress

different kinds

of companieswith different

kinds

of product

types. We donot pay explicit

attention todifferencesin how

individuals

come to havepositive

attitude to

different kindsof products and

to companies

producing

differenttypes of

products (to

different types

of customers).For instance,

differences

between a

Further research

shouldstudy the

interplays between

a companysproduct offerings,

the creation of the

rational

expectationswhich individuals

have in their rolesas productbuyers/users and

stock buyers/

holders, thedevelopment of

their attitudes to

the productsand the company,

and the

individuals

buying behaviorsas

driven by the

expectations and

attitudes together.


22/31

based on

traditional

finance

theory,fundamenta

llydeterminedby the

earnings.

Second,individuals

increased

optimismand

confidence

in formingexpectations

about the

earningsand stock

price

increasesof the

company

will lever

the stockprice

further up.

Finally,there will

be a

direct

demandcomponent

for the

stock based

not only onthe

expectation

s about thefuture

earnings

andfinancial

company that

offers

products

exclusively toconsumers

(B2C) and acompanythat offers

products

exclusively toserve the

output of other

companies/orga

nizations(B2B) are

likely to be

considerable.


23/31

returns

from the

stock but

also onindividuals

positiveattitude tothe

company

and,potentially,

the

correspondi

ngexperiential

utility

gainedfromownership

per se in

the present

which

will lever

up themarket

stock price

as well.

28 BehaviouralFinance 2007 MartinSewell Anintroducti

on tobehaviour

al _nance,

includinga review

of the

majorworks

and a

summary

ofimportant

heuristics.

Behavioural

_nance isof interest

because it

helpsexplain

why and

howmarkets

might be

inefficient.


24/31

2

9

Neighbors

Matter:

Causal

CommunityEffects and

Stock MarketParticipation

20

08

J. R.

Brown, Z.

Ivkovic,

P. A.Smith,

and S.Weisbenner

provides

evidence

of a

causalrelation

betweentheaverage

stock

marketparticipati

on

decisions

of onescommunit

y and an

individualsdecision

of

whetherto own

stocks

an initial

increase in

the average

stockownership

level in acommunitymay have a

multiplier

effect,making it

more likely

that other

individualswill also

begin

participating.

3

0

A Risk

Perception

Primer:A Narrative

ResearchReview of the

RiskPerception

Literature in

BehavioralAccounting

and

BehavioralFinance

20

04

Victor

Ricciardi

overview

of the

conceptsof

risk,perceptio

n, andrisk

perceptio

n with thefinancial

scholar in

mind.There is

also a

presentati

on on thebehaviora

l finance

concepts

andthemes

that might

the role of

affect or

feelings,the

influence ofworry, the

notion of

perceived

control, the

significanc

e of expert

knowledge,

the issues

of

overconfide

nce, andthe concern

or potential

losses in

dollar

terms.The 5

judgment

Finance

scholars

shouldrecognize that a

projectinvolving

behavioralfinance

(including the

topic of riskperception) and

based on an

interdisciplinary research

presents some

unique

challenges

Present the

material in a

manner that awider audience of

finance academicsand professionals

understand andcan replicate it.


25/31

influence

an

individual

.sperceptio

n of riskfordifferent

types of

financialservices

and

investmen

t products

attributes

are: therole of

familiarity,the overall

perceivedriskiness of

a stock,

the overall

perceived

return of a

stock, thesignificanc

e of the

investment

time

horizon(short

term vs.

long run),

and the

likelihood

of investing

in the

stock.

32

A study onsmall

investorsbehavior in

choosingstock

case study:

Kuala-Lumpurstock market

Mohammad Reza

TavakoliBaghdada

bad1*,Farid

Habibi

Tanha2and

Noreha

Halid

toidentify

the keydetermina

nts ofchoosing

stock by

smallinvestors.

Theresearch

evidencereveals 13

effectivefactors in

choosing

stockwhich can

influence

small

investorsdecisions

for stock

selection.These

factors are

in order of

importanceinvolving

financial

small samplesizes, with

further researchin terms of in-

depthqualitative/and

or

quantitativestudies

required with

larger samplesizes to

deal with any

issues in terms

of makinginferences or

generalizations

regarding the

population as awhole.

additionalqualitative small

investorresearch across a

larger sample willfacilitate the

confirmation/disc

onfirmation of theimportance of the

proposed

influencingvariables on stock

selection to

identify a

behavior patternfor this group of

inventors;


26/31

statements

of

companies,

accountinginstruments

, past stockprice(return),

firms

publicinformation

,

profitabilit

y variables,consult

with

anybody,financialratios, past

trading

volume ofstocks,

second-

handinformation

resources,

discounted

cash-flowtools,

governmen

tpolicies,

calculation

of risk and

economicvariable.


27/31

3

3

Momentum

and behavioral

finance

20

11

Ding Du re-

examine

the

sources ofmomentu

m profitsbyfocusing

on

momentum in

monthly

returns.

Different

from

previous

studies, itis found

thatmomentummay have

multiple

sources,and that

risk or

behavioral

biases inisolation

may not be

sufficientto explainmomentum

.

researchers should

focus on

mis-reaction to

common (market-wide) information

to explainmomentum asemphasized by Lo

and

MacKinlay.

3

4

Factors

influencing

individualsinvestor

behavior: an

empiricalstudy of UAE

financialmarkets

20

05

Hussain

A. Hassan

Identifyin

g investor

behavior

The six

important

factorswere:

corporate

earnings,get rich

quick,stock

marketability, past

performanc

e of thefirms stock,

governmen

t holdingsand the

creation of

organized

financialmarkets.

Invest

behaviors

differe withcultures. So the

results are not

applicableworld wide

Study different

cross cultural

investmentbehaviors


28/31

3

5

THE ROLE

OFFEELINGS

IN

INVESTORDECISION-

MAKING

20

05

Brian M.

Lucey,Michael

Dowling

surveys

theresearch

on the

influenceof

investor

feelings

onequity

pricing.whethervariations

in

feelingsthat are

widely

experienced by

people

influence

investordecision-

making

and,

consequently, lead

to

predictabl

While this

is anefficient

decision-

makingtool and is

consistent

with our

knowledgeof how

peoplegenerallymake

decisions,

it can resultin errors if

the investor

allowsirrelevant

mood

states to

influencetheir

judgements

. Section 5

describedanother

manner in

which

many of the

findings in thearea are

inconsistent

withexisting

theories of how

investors

should makeinvestment

decisions.

Deepen the breath

of investigationsinto the

relationship

between moodproxy variables

and asset pricing.

There has not yet

been sufficientstudy

in this area toallow anythingother than very

preliminary

conclusions to bemade about the

relationship

between moodand asset pricing.

There is a

need for

investigations intoasset classes other

than equity

returns, such as

bonds,commodities and

derivatives.


29/31


30/31

Exchange

EfficientMarketHypothesis AndBehavioral FinanceIs ACompromise InSight?

Nikolai

ChuvakhinStudying

theEfficient

Market

Hypothesis And

Behaviora

l Finance

relation

People are

rational

in standard

finance;

they are

normal

in

behavioral

finance


31/31

Efficient

market

hypothesi

s and

forecastin

g

20

04Allan

Timmer

mann*,

Clive

W.J.

Granger

Studying

Efficient

market

hypothesis and

forecasting relation

If the

behavior of

investors

produces

efficient

markets by

their

continuous

profit

seeking, the

reverse

is that the

EMH does

not rule out

predicting

many

other

variables that,

although of

general

interest, arenot the basis

for a profit

making

strategy.

there are likely to

be short-lived

gains

to the first users of

new financial

prediction

methods.

Once these

methods become

more widely used,

their

information may

get incorporated

into prices and

they

will cease to be

successful.

Risk

Firm

Organi

zation

s ublic

Return

Attitude

towards

Familia

rity

Intentio

n to

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