Stock Investment Research Articles

The effects of cognitive leisure activities on frailty transitions in older adults in China: a CHARLS-Based longitudinal study.

In an effort to identify factors associated with frailty transitions that trigger a significant difference in preventing and postponing the progression of frailty, questions regarding the role of cognitive leisure activities on various aspects of older adults' health were raised. However, the relationship between cognitive leisure activities and frailty transitions has rarely been studied. A total of 5367 older Chinese adults aged over 60 years from the China Health and Retirement Longitudinal Study (CHARLS) were selected as participants. The 2nd wave of the CHARLS in 2013 was selected as the baseline, and sociodemographic and health-related status baseline data were collected. The FRAIL Scale was used to measure frailty, while cognitive leisure activities were measured by the Cognitive Leisure Activity Index (CLAI) scores, which consisted of playing mahjong or cards, stock investment, and using the internet. After two years of follow-up, frailty transition from baseline was assessed at the 3rd wave of the CHARLS in 2015. Ordinal logistic regression analysis was used to examine the relationship between cognitive leisure activities and frailty transitions. During the two-year follow-up of 5367 participants, the prevalence of frailty that improved, remained the same and worsened was 17.8% (957/5367), 57.5% (3084/5367) and 24.7% (1326/5367), respectively. Among all participants, 79.7% (4276/5367), 19.6% (1054/5367), and 0.7% (37/5367) had CLAI scores of 0, 1, and 2 to 3, respectively. In the univariate analysis, there was a statistically significant association between a score of 2 to 3 on the Cognitive Leisure Activity Index and frailty transitions (odds ratio [OR] = 1.93, 95% CI 0.03 to 1.29, p = .04), while all other covariates were not significantly different across the three groups. After adjusting for covariates, participants with more cognitive leisure activities had a higher risk of frailty improvement than those without cognitive leisure activities (odds ratio [OR] = 1.99, 95% CI 1.05 to 3.76, p = .04). Cognitive leisure activities were positively associated with the risk of frailty improvement in older adults, mainly when participating in multiple such activities. Older adults may be encouraged to participate in a wide variety of cognitive leisure activities to promote healthy aging.

The Effect of Financial Information on Decision Making to Purchase Shares Using the TOPSIS Method (Technique for Order Preference by Similarity to Ideal Solution)

In making stock investment decisions, it is important for investors to perform certain calculations and analyzes in order to be able to assess how well the performance of the issuer (company), with the aim of getting the expected rate of return and being able to minimize investment risk. This study was conducted to find out how the decisions that will be made by investors on buying shares on the Indonesia Stock Exchange using fundamental analysis. The difference between this study and previous research is that it adds a Positive Ideal Solution (PIS) and a Negative Ideal Solution (NIS) from financial information indicators ( Dept to Equity Ratio, Return on Equity, Net Profit Margin, Return On Assets, Earning Per Share, Price Earning Ratio). , and Price Book Value ) using the TOPSIS method. The sample in this study uses securities listed on the Indonesia Stock Exchange as many as 94 securities. The results showed that the Dept to Equity Ratio, Return On Assets, Earning Per Share, Price Earning Ratio, and Price Book Value had a significant effect on stock purchase decisions, while Return on Equity and Net Profit Margin had no effect on stock purchase decisions.

Wealth and familiarity bias: sin stocks investment in Europe

AbstractOur study investigates the relationship between European society’s wealth and how they invest in sin stocks—stocks of listed firms involved in producing tobacco, alcohol, and gambling goods and services returns. Using time series data from 24 European countries from 2000 to 2020 to check the performance of sin stocks, we tested 3 hypotheses to explore the possibility that sin stock returns are related to the wealth of the countries they are based on and to the levels of consumption of alcohol and gambling in those countries. Three quantitative methods are used to measure risk-adjusted returns of the sin stocks: the CAPM single-factor or market model, the Fama-French 3-factor model, and the Fama-French 5-factor model. We found significant evidence of the existence of abnormal returns. The evidence supports that sin stocks have a significant relation with the market, lower volatility, and have better risk-adjusted returns during times of economic downturn. Our results show that sin stocks from the wealthier Northern European countries yield higher risk-adjusted returns than their Southern and Easter European counterparts. We found familiarity bias in gambling sin stocks, which suggests that getting used to something seen as sinful can lead to a lower feeling of rejection. As it is common in behavioural finance, behind the data and numbers of the financial markets, ordinary human behaviour is an essential explanation that defies the orthodox concepts of mathematical efficiency.

The Influence of Representativeness Bias and Hearding Effect on Investment Decisions in the Capital Market

This research aims to explore the influence of representativeness bias and herding effect behavior on rational investment decisions in the capital market. Quantitative methods were used involving 100 investors who were members of the Beginner Stock Investor (ISP) community in Jakarta. The results of the analysis show that representativeness bias and herding effect behavior have a significant influence on rational investment decisions. These findings highlight the importance of awareness of the psychological factors that influence investor behavior in making investment decisions, as well as the need for a more independent and focused approach to fundamental analysis to ensure more appropriate and optimal investment decisions. The practical implication of this research is that a better understanding of investor behavior and its impact on markets can help investors to overcome these biases and improve the quality of their investment decisions.

Does community resilience affect household asset portfolio choices?

AbstractThis paper identifies a positive (negative) relationship between community resilience and household stock market participation (deposit flows). These relationships are less pronounced for higher‐income and married households, indicating an income channel and a marriage channel, respectively. Furthermore, compared to white and Asian households, black households are more sensitive to the effects of community resilience on household investments and deposit flows. Overall, our findings suggest that improvements in people's preparedness for, resilience against, and recovery from potential hazardous events and natural disasters shift households' asset portfolio choices from safe savings to risky stock investments.

Financial management engagement and small and medium-sized businesses in eThekwini municipality, South Africa

Small and medium-sized businesses are widely recognised as the cornerstone of growth in emerging and middle-class countries, and South Africa is no different. They generate many job possibilities and salaries for many individuals who live in cities, making them an essential component of average national production. The main objective of the research was to examine the level to which Small and Medium-sized businesses in the eThekwini Municipality used financial management. The research project used a quantitative method to collect and analyse data from the field. The survey included 60 participants from various small and medium-sized businesses in eThekwini. Proprietors and managers of small and medium-sized businesses were among those who responded. The rate at which organisations implement systems that effectively organise their money was a crucial component in analysing the financial management engagements of small and medium-sized businesses. This can be assessed in various ways, including distributing closed-ended surveys to responders. As a result, the proprietors of small and medium-sized businesses were prompted to score their companies based on the level to which financial preparation strategies were implemented and the funding sources. The research found that small and medium-sized businesses in the research areas did not develop long-term financial strategies that included investments in non-current assets, shares, stocks, and real estate initiatives. Small and medium-sized businesses must establish trustworthy systems for accounting information, disclose and analyse their financial challenges regularly, and advocate for laws that make it simpler for small and medium-sized businesses to obtain inexpensive financing. Since small and medium-sized businesses are recognised as contributing significantly to national economic growth, they must keep growing.

Optimization of Stock Investments in Indonesia Stock Exchange: Comparing the Method of Dollar Cost Averaging (DCA) and Lump Sum (LS)

The aim of this research is to find out how to optimize stock investment using the dollar cost averaging method and the lump sum method and also to compare the performance between the dollar cost averaging method and the lump sum method based on return results. This research uses a descriptive method with a quantitative approach. This research uses 2 companies with the largest market cap listed on the Indonesian Stock Exchange for the 2021-2023 period. The results of this research found that the lump sum method return in 2022 on BBCA shares reached 22.85% and on BBRI shares 18.19% higher than the return on the dollar cost averaging method on BBCA shares which was only 13.70% and on shares BBRI is only 10.86%. The lump sum method return in 2022 is the highest return between 2021 and 2023. These results prove that the lump sum method is more optimal than the dollar cost averaging method.

The Effect Of Earnings Per Share, Debt To Equity Ratio And Net Profit Margin On Stock Returns In Property And Real Estate Sector Companies Listed On The Indonesian Sharia Stock Index (Issi) For The 2018-2023 Period

The company's financial performance is one of the factors that investors pay attention to in investing in the capital market. One of the investment instruments is stocks. The purpose of stock investment is to obtain a share retreat. This study aims to determine the effect of Earning Per Share, Debt to Equity Ratio and Net Profit Margin on stock returns in Properties and Real Estate sector companies listed on the Indonesian Sharia Stock Index (ISSI) for the 2018 ̶ 2023 period. The analysis method used is the panel data regression method with the selected model being the Common Effect Model (CEM). The population in this study is all companies included in the Properties and Real Estate sector listed on the Indonesia Stock Exchange (IDX) for the 2018 ̶ 2023 period as many as 87 companies. The determination of the number of samples was carried out using the Purposive Sampling technique and determined as many as 16 samples of the Company. The results of the t test show that partially Earnings Per Share and Net Profit Margin have a significant effect on stock returns while the Debt to Equity Ratio does not have a significant effect on stock returns. The results of the F test show that simultaneously Earning Per Share, Debt to Equity Ratio and Net Profit Margin have a significant effect on stock returns in Properties and Real Estate sector companies listed on the Indonesian Sharia Stock Index (ISSI) for the 2018 ̶ 2023 period.

Can ESG Integration Enhance the Stability of Disruptive Technology Stock Investments? Evidence from Copula-Based Approaches

This paper provides an investigation into the dependence structure among different disruptive technology sectors driving the Fourth Industrial Revolution and scrutinizes the impact of ESG integration on shaping investments in different tech stock sectors in the presence of ESG consideration, represented by the ESG stock index, versus without specific ESG consideration, represented by the general stock index. The results show that (i) C-vine outperforms R-vine and D-vine when modeling the dependence structure of tech sectors. Intelligent infrastructure is the most crucial sector, with substantial reliance on smart transportation and advanced manufacturing. (ii) ESG integration reduces dependence, especially tail dependence, between tech sectors and the stock market, which benefits the future security sector the most and future communication the least. (iii) ESG integration mitigates risk spillover between tech sectors and the stock market, particularly benefiting final frontiers and intelligent infrastructure. The decrease in downside spillover is more significant compared to upside scenarios. For downside risk, spillover from tech sectors to stock indices is more reduced than the reverse, while the opposite holds for upside risk. These sectoral findings offer insights for market participants in financial market investments, financial regulators in risk management, and listed companies in ESG disclosure.

Kombinasi Metode Webqual 4.0 dan Importance Performance Analysis pada Pengukuran Kualitas Website Stock Exchange

Interest in stock investment in Indonesia is still relatively low compared to other countries, data shows that the population of productive age has reached 189 million, but there are only 4.16 million retail investors in the capital market with an involvement ratio of around 2.2 percent. This shows that the participation ratio of the Indonesian population in investing in shares is less than 5 percent, which is far behind other countries such as the United States (55 percent), Singapore (26 percent) and Malaysia (9 percent). The lagging interest in investing is due to a lack of understanding of digital literacy in investing. This needs to be overcome by increasing the digital literacy understanding of the Indonesian people regarding investing in shares. The webqual 4.0 method is a method used to measure the quality of the stock exchange information system website in Indonesia, namely IDX.co.id, through the use of three measurement variables, namely in terms of usability, information quality, service interaction quality. In addition, the Importance Performance Analysis (IPA) method is applied to carry out performance assessments on expectations of website quality. It can be measured to identify indicators according to user preferences, then the results of these measurements are used to identify indicators that need to be improved on the IDX information system so that can improve user experience, as well as increase digital literacy of stock investment in Indonesia. This research collects information from users through questionnaires which are processed using the linear regression analysis method. The research results show that users are satisfied with the current IDX Website in terms of Usability, Information Quality and Service Interaction Quality, indicated by the T-Statistics value which is higher than the T-Table. So that the public's understanding of digital stock investing literacy facilitated by the idx.co.id website is good. However, based on the Importance Performance Analysis analysis, improvements still need to be made to indicators in quadrants I and III which have low performance. Recommended improvements include improving site navigation, implementing SEO, site redesign, increasing credibility, reorganizing menus, content audits, and increasing user interaction.

Unveiling investors' substitution behavior: Stock trading decisions in response to housing market dynamics

Utilizing positive quasi-random shocks to local housing prices in Shanghai, we show that stock investors who experienced significant returns from the real estate market traded less actively, took less risk, and spent less effort trading. We confirm the effect of housing price changes on investors' trading behavior in a national sample. Our findings suggest a substitution effect between the real estate and stock market and highlight the importance of understanding investors' trading behavior in light of intertemporal variations in other asset market.

Financial Ratio Analysis in Determining Stock Investment on Banking Companies Listed on IDX for the 2018-2022 Period

This research aims to determine the effect of Return On Assets (ROA), Return On Equity (ROE), Debt to Equity Ratio (DER), and Earning Per Share (EPS) to stock price in banking companies listed on the Indonesia Stock Exchange (IDX) period 2018-2022. The independent variables (X) in this research are ROA (X1), ROE (X2), DER (X3), and EPS (X4). Meanwhile, the dependent variable (Y) in this research is stock price. The method used in this research is descriptive quantitative method. The population in this research is all banking companies listed on the Indonesia Stock Exchange for the 2018-2022 period totaling 46 companies. The method for determining the research sample used purposive sampling, the total research sample was 27 companies and the number of observations was 135 companies. Based on the research results, it shows that partially ROA, ROE, and DER have no effect and are not significant on stock price, while EPS partially has a significant effect on stock prices. Simultaneously ROA, ROE, DER, and EPS have a significant effect on the stock prices.

Non-professional versus professional investors’ trust in financial analysts’ recommendations and influences on investments

PurposeThe paper aims to investigate differences in non-professional and professional stock investors’ trust in and tendency to follow financial analysts’ buy and sell recommendations.Design/methodology/approachOnline experiment conducted in Sweden in March 2022 comparing non-professional private investors (n = 80), professional investors (n = 33), and master students in finance (n = 28). Information was presented about four company stocks listed on the New York stock exchange. Two stocks were buy-recommended and two stocks sell-recommended by financial analysts. For one stock of each type, the recommendation was presented to participants. Dependent variables were predictions of the stock price after three months, ratings of confidence in the predictions and choices of holding, buying or selling the stock. Ratings were also made of the importance of presented stock-related information as well as trust in analysts’ skill and integrity.FindingsMore positive return predictions were made of buy-recommended than sell-recommended stocks. Non-professionals and to some degree finance students tended to trust financial analysts more than professional investors did and they were more influenced by the presentation of the buy recommendations. All groups made too optimistic return predictions, but the professionals were less confident in their predictions, more likely to sell the stocks and lost less on their investments.Originality/valueA new finding is that non-professional stock investors are more likely than professional stock investors to trust financial analysts and follow their recommendations. It suggests that financial analysts’ recommendations influence non-professional investors to take unmotivated investment risks. Non-professionals in the stock market should hence be advised to exercise more caution in following analysts’ recommendations.

Resilience of ethical and nonethical stock during COVID-19 crisis: a case of Indonesia Stock Exchange

Purpose This study aims to empirically investigates the effect of the COVID-19 pandemic on ethical and nonethical stocks in Indonesia. Ethical stocks which are characterized by moral-based companies’ activities and lower debt are expected to have better resilience during the COVID-19 crisis compared to nonethical stock. Design/methodology/approach This study observes 589 firms of ethical and nonethical stock during sample periods ranging from March 2, 2020 (first case announced) to June 30, 2021. Panel regression, with some control variables, was applied. Findings Testing firms in Indonesia revealed a significant difference in stock resilience, in which ethical stock has a better resilience compared to nonethical, with Islamic socially responsible investment (SRI) stock having the highest resilience, followed by Islamic stock and then SRI stock. This study documents a significant effect of some financial criteria on the stock resilience, namely, return market (RM), market capitalization (MCAP) and share turnover (TURN). Overall, after splitting the sample into different time horizons, this study consistently reveals that ethical firms have better resilience compared to nonethical stocks. Research limitations/implications This study makes several contributions to the literature on Islamic finance, especially concerning Islamic screening with SRI factors. In practical terms, this study supports the argument that focusing on integrating environmental, social and governance criteria in sharia screening will improve the quality of Islamic firms. The “Islamic” label is not only a marketing label but also a quality certification. Originality/value This study can be used as a reference for developing Islamic finance more focused on sustainability issues including socioeconomic and human development by improving the quality of screening of Islamic firms. Therefore, this study suggests that the establishment of Islamic SRI index is very crucial and significant to promote ethical-based investment.

Analysis of the Investment Features of Stocks of Valuation System with Chinese Characteristics Based on Hierarchical Cluster Method

The ultimate goal of stock investment is to achieve profitability, and risk avoidance is the most important foundation for achieving profitability. Accurately evaluating the value of stocks in the market is one of the key factors for successful investment. Under the background of proposing the Valuation System with Chinese Characteristics, a reasonable analysis of the investment features of stocks of Valuation System with Chinese Characteristics can bring opportunities to investors. To this end, first construct the characteristic indices of stocks of Valuation System with Chinese Characteristics — Price Earnings Ratio (PE), Price-to-Book Ratio (PB), and Dividend Yield Ratio. Then, based on the characteristic indices, use the hierarchical cluster method to perform clustering analysis on the stocks of Valuation System with Chinese Characteristics. Afterwards, by optimizing the clustering results, all stocks of Valuation System with Chinese Characteristics were classified into four categories. According to the classification analysis of the investment features of the stocks, it can be concluded that the issuing company of the first category of stocks has recently been operating poorly, so it is not recommended to invest; The value of stocks in the second category is overestimated and it is not recommended to invest; The third category of stocks are high growth stocks, and it is recommended to invest with caution; The stocks in the fourth category have the characteristics of undervaluation and high dividends, and it is recommended to invest.

Evidence on Price Formation In Financial Markets: A Multitemporal Analysis

Background: Although clean energy stocks have become a popular new asset class for market players, relatively little research has been done on risk management strategies for investors in clean energy stock markets. Gold and Silver are examples of precious metals typically considered suitable investments to hedge against uncertainty. Therefore, their demand tends to rise when stock markets decline. Purpose: The study aims to analyse the influence of precious metals (Gold, Silver and Platinum) and green stock indices (Clean Energy Fuels, Nasdaq Clean Edge Green Energy, S&P Global Clean Energy, WilderHill Clean Energy) on price formation during different economic periods between 1 January 2018 and 23 November 2023. Methods: The periods analysed were Tranquil, 2020 pandemic, pre-conflict and Conflict (Russian invasion of Ukraine). To this end, a VAR Granger Causality/Block Exogeneity Wald model was estimated to identify different influence patterns during each period. Results: During the Tranquil period, 15 movements affecting prices were observed, with Silver significantly influencing all its peers, while Gold impacted Platinum, S&P Global, Nasdaq and WilderHill. Platinum was the asset that received the most shocks from its peers. During the 2020 pandemic, there was an increase to 26 movements, with the S&P Global and Nasdaq Clean indices influencing most of their peers. Gold and Platinum continued to be the assets most influenced by their peers. In the pre-conflict period, 11 movements were identified, with the highlight being the mutual influence between Gold, the Nasdaq and WilderHill indices, and Platinum. During this period, Silver and S&P Global only affected the price formation of Platinum and Clean Energy Fuels, respectively. During the Conflict period, 18 movements were observed, highlighting the influence of Platinum and S&P Global on the price formation of various assets. Gold was the asset that received the most shocks from its peers during this period. Conclusion: the results indicate changes in the interactions between assets throughout the different economic contexts, highlighting the importance of understanding these dynamics to make more informed decisions.

Factors That Encourage Investors to Decide to Invest in Shares in the Capital Market for the 2020-2023 Period (Covid-19 Pandemic): Systematic Literature Review

Investment is a very important element for a country because it has two roles, namely as a supporter of income and a driver of economic growth. In this research, the author analyzes what factors encourage investors to decide to invest in shares in the capital market. This research uses the Systematic Literature Review (SLR) method. This research comes from articles published in 2020-2023 found in Publish or Perish and Google Scholar. Data is collected, identified and assessed before being systematically reviewed with the aim of supporting further research. The results of this review show that during the Covid-19 pandemic, many investors made stock investment decisions in the capital market due to psychological factors. As a result of the economic problems that have arisen as a result of the Covid-19 pandemic, many people's perspectives have changed from previously preferring traditional investments such as deposits to looking for investment options that provide high returns such as mutual funds and shares with different investment objectives. This is also supported by the rapid development of digital and information technology during the Covid-19 pandemic, which has caused public participation in the capital market to increase. Many fintech companies that adopt automatic investment technology are able to remove obstacles for potential investors who lack investment literacy and limited capital without having to study and understand the entire investment scheme in the capital market. Apart from that, financial literacy is also mentioned as a factor that can determine stock investment decisions because the knowledge that comes from literacy will strengthen stock investment decisions.

FAKTOR-FAKTOR YANG MEMENGARUHI KEPUTUSAN MENJADI INVESTOR BARU SAHAM SYARIAH

This study aims to find out what factors influence the decision to invest and become an investor in Islamic stocks during the Covid-19 pandemic. This study uses a quantitative approach with exploratory factor analysis method. The sampling method used was non-probability sampling with a purposive sampling technique with 105 samples obtained by distributing questionnaires to respondents who met the research criteria online. The results of this study reveal that there is an anomaly in new Islamic stock investors compared to old investors who tend to avoid investing during the Covid-19 pandemic. There are nine factors that influence the decision to invest and become new investors in Islamic stocks during the Covid-19 pandemic. These factors are technological advances, herding behavior, investment motivation, sharia compliance, risk perception, minimum investment capital, basic investment knowledge, avoiding speculation, and technical analysis factors.

Understanding Intraday Oil Price Dynamics during the COVID-19 Pandemic: New Evidence from Oil and Stock Investor Sentiments

This study employed intraday stock market and oil investor sentiment data related to news and social media (i.e., the Thomson Reuters MarketPsych Indices [TRMI] sentiment index) to gauge investors’ interest in the West Texas Intermediate (WTI) crude oil futures market during the recent health crisis. We proposed an original nonlinear empirical framework by considering oil price dynamics’ complexity and its potential interaction with investor sentiment. The analysis revealed three noteworthy findings. First, we observed evidence of nonlinearity in the relationship between excess returns on WTI crude oil futures and investor sentiment data. Second, the causality direction moved only from oil and stock market investor sentiment to oil returns. Third, the impacts of oil and stock market sentiment data on crude oil returns (i.e., volatility) were always negative. Furthermore, sentiment data related to social media showed a more pronounced cross-correlation than that of news.

The effect of financial literacy on financial inclusion, social capital, and cognition on beginner and experienced investor

This study examines how financial literacy affects financial inclusion, social capital, and cognition in stock investors. Prospective investors or investors can manage per-sonal finances in the future. This research involves many samples with cross-sectional data. This research consists of the independent variables, financial literacy, and the dependent variables consist of financial inclusion, social capital, and cognition. The dependent variable of financial inclusion consists of access, quality, usage, and welfare; social capital consists of the dimensions of collective action, bonding, bridging and trust, and cognition. The independent variable of financial literacy consists of the dimensions of skill, behavior, knowledge, and attitude. The collected respondents were taken from 165 respondents, and they were analyzed using the structural equation modeling. After processing the data, it shows that the effect of financial literacy and cognition on financial inclusion is supported, and financial literacy on social capital cognition is supported. Meanwhile, social capital towards inclusion literacy needs to be supported. Based on the results, stock investors must be more careful in choosing investment products/institutions to avoid fraud.