Investment Experience Research Articles

NPL 프로세스 분석 기반 대체투자 표준화를 위한 서비스융합디자인 연구

The purpose of this study is to design an alternative investment standardization to resolve price opacity and information asymmetry, which are the specific characteristics of the alternative investment market, and to present a service design to improve communication. To this end, bad loans with real estate collateral, art distribution market characteristics, and price index models were examined, and service blueprints, one of the service design methodologies, were used to analyze the investment process of quantitative and qualitative assets, two forms of alternative investment, and to determine the value of stakeholders. Through this analysis, alternative investment standardization was designed, and based on this, a communication service design that can improve the user experience of art investment was presented.

Study on Portfolio Strategy of FOF Funds

FOF, as an emerging financial model, diversifies fund products and gives investors a new investment experience. This paper analyzes the following aspects: Firstly, it gives an overview of the investment status of FOF funds at domestic and overseas; secondly, it introduces the development history and status of domestic FOF funds; then, it elaborates on the characteristics and mode of operation for FOF funds; finally, it puts forward the management principles of FOF funds and analyzes the advantages and disadvantages of FOF funds with empirical data. Moreover, the study above shows that China is still lagging behind in the development of FOF funds. However, with the continuous opening of the financial market, more and more foreign investors are entering our market. Therefore, it is necessary to strengthen the understanding of FOF funds, actively explore new investment models and improve our own investment level.

Learning from credit default

Utilizing a unique P2P dataset, this study employs the PSM-DID method to explore the learning effect brought about by default events on investors. The findings reveal that investors who experience their first default event demonstrate an improved ability to select a higher-quality project the next time. Notably, this positive effect is more pronounced when facing substantial defaults, as opposed to cases where overdue principal and interest are eventually settled. Investors' initial confidence in defaulted projects contributes to a greater enhancement of their investment skills. Furthermore, the beneficial impacts of defaulted events diminish as investors’ investment experience accumulates.

Lexical sophistication and crowdfunding outcomes

ABSTRACT It is advised that entrepreneurs should keep the language of venture descriptions short and simple. However, knowledge about the conditions under which language in crowdfunding communications impacts investment behavior is limited. We propose that the use of sophisticated language in crowdfunding venture descriptions creates perceptions of venture distinctiveness that, in turn, increase the amount invested. We test this proposed mechanism across a controlled experiment and present evidence from 886 crowdfunding campaigns that increasing the linguistic sophistication of campaign descriptions can result in a 20% increase in the amount raised by a campaign and greater campaign success. Furthermore, we show that the impact of lexical sophistication on the amount raised is moderated by investor experience whereby experienced investors invest more in ventures with sophisticated language compared to inexperienced investors. Our work contributes to research on communication in crowdfunding by highlighting the significance of lexical sophistication in influencing funding behaviour.

Attention Spillover in Asset Pricing

ABSTRACTExploiting a screen display feature whereby the order of stock display is determined by the stock's listing code, we lever a novel identification strategy and study how the interaction between overconfidence and limited attention affect asset pricing. We find that stocks displayed next to those with higher returns in the past two weeks are associated with higher returns in the future week, which are reverted in the long run. This is consistent with our conjectures that investors tend to trade more after positive investment experience and are more likely to pay attention to neighboring stocks, both confirmed using trading data.

The Influence of Financial Literacy, Investment Experience, and Overconfidence on Investment Decisions in National University Master of Management Study Program Students with Risk Tolerance as an Intervening Variable

This research uses a quantitative approach and Partial Least Square- Structural Equation Modeling (PLS-SEM) to test the relationship between the variables Financial Literacy (X1), Investment Experience (X2), Overconfidence (X3), Risk Tolerance (Z), and Investment Decisions ( Y) for National University Master of Management study program students. The results of descriptive statistical analysis reveal that Financial Literacy, Investment Experience, and Overconfidence have a positive and significant effect on Risk Tolerance, while Financial Literacy, Investment Experience, and Overconfidence have a positive effect on Investment Decisions. However, the results of the analysis show that Financial Literacy has an insignificant influence on Investment Decisions, while Investment Experience and Overconfidence have a positive and significant influence on Investment Decisions. Risk Tolerance also has a positive and significant effect on Investment Decisions. In addition, this research finds that Risk Tolerance mediates the relationship between Financial Literacy, Investment Experience, and Investment Decisions. In other words, the greater the Financial Literacy and Investment Experience, the Risk Tolerance will increase, which in turn will increase Investment Decisions. The results of this research provide important insights for National University Master of Management study program students and other stakeholders in understanding the factors that influence investment decisions, as well as the importance of understanding the level of financial literacy and investment experience in managing risk and making wise investment decisions.

Evaluating the Mediating Mechanism of Perceived Trust and Risk toward Cryptocurrency: An Empirical Research

In recent years, investing in cryptocurrencies has become a fad worldwide. However, fewer studies have explored the intention of using cryptocurrencies. Different from traditional financial commodities, cryptocurrencies have a unique appeal. Therefore, this study uses technology mindfulness, technology readiness, and financial literacy, and through perceived trust and perceived risk, to understand users’ intentions to use cryptocurrencies. The respondents to this study were cryptocurrency owners or those having financial investment experience. A total of 337 valid samples were obtained and analyzed by the partial least square-structural equation model (PLS-SEM) method. The results showed that technology mindfulness and negative technology readiness significantly impacted perceived trust and perceived risk. On the other hand, perceived trust and perceived risk significantly impacted the intention to use. Finally, this study proposes theoretical and practical implications which can help cryptocurrency trading platforms understand the motivations of potential and existing users. Finally, this study can also serve as a reference for cryptocurrency trading service providers to develop marketing strategies.

P2P Lending platforms in Malaysia: the awareness among Malaysian adults.

Background: Since 2016, the Securities Commission (SC) in Malaysia has given licenses to only eleven P2P lending platforms. Such lending platforms are expected to disrupt the lending services of traditional lenders in the coming years. However, being still in their infant stages, it is essential to know the extent to which such platforms are made known to potential investors out there. This study aims to examine the awareness level of the eleven P2P lending platforms among Malaysian adults. The study also explores if past investment experience and financial knowledge would influence such awareness from Malaysian adults. Methods:A sample of 335 Malaysian individuals was used for this study. An online questionnaire was designed with three main parts: demographic, financial literacy, and P2P lending awareness. Using IBM SPSS Statistics 26, frequency, descriptive, normality, Pearson coefficients and multiple regression analyses were carried out. Results: Although seven out of ten respondents have good knowledge in three areas of finance: compounding rate, inflation and diversification, only 14.33% had a good and excellent awareness level of P2P lending. Thus, one would expect lesser awareness about P2P lending among Malaysian adults whose financial literacy is poor or zero. Test results from multiple regression analysis suggest that past lending experiences positively affect the awareness of P2P lending in Malaysia, but not the financial literacy. Conclusions: The awareness about P2P lending among Malaysian adults is too low, despite their high level of education and financial literacy. No investing experience and not knowing any existing P2P lending in the country may be the reason for this low awareness. Therefore, for P2P lending to thrive in Malaysia, the eleven P2P lending platforms need to be promoted aggressively in various social media outlets.

The Impact of Fintech on Economic Growth in Singapore

The study examines the impact of financial technology on economic growth in Singapore. Using time-series data on Singapore's financial technology from 2010 to 2022, The study constructs a financial technology index based on a comprehensive set of indicators. Through VAR modeling, the study assesses the effects of financial technology on the interest rate market, consumer market, and investment market, as well as its role in driving economic growth. The results indicate that financial technology has a positive impact on Singapore's economic growth. The calculation of the Fintech Index reveals a continuous improvement in Singapore's level of financial technology. The VAR analysis demonstrates that the development of financial technology has significant impacts on the interest rate market, consumer market, and investment market in Singapore. This suggests that the advancement of financial technology helps lower market interest rates, enhances the experiences of consumers and investors, and promotes consumption and investment growth. These findings highlight the significant role of financial technology in driving economic growth in Singapore.

Mitigated liability of origin: a more salient category triggered by M&A as an establishment mode

PurposeThis paper aims to explore how the establishment modes used by emerging economy multinational corporations (EE-MNCs) influence their subsequent experiences of liability of origin (LOO) in developed economies based on the causal-model theory of categorization.Design/methodology/approachTaking Chinese listed firms' direct investments in developed economies as the sample, this paper utilizes Heckman (1979)'s self-selection model to examine the effect of establishment modes. Besides, when checking the robustness, subsample analyses and 2SLS regressions are used to rule out the alternative explanation associated with LOO mitigation.FindingsEE-MNCs that enter a developed economy by greenfield investment experience heightened LOO while entries using M&A are associated with the mitigated liability. When EEMNCs enter a more institutionally distant developed country, the establishment modes will be more determinant of their subsequent experiences of this liability. Moreover, the effect of establishment modes can recede when EE-MNCs have established their presence in a developed country for a longer time.Originality/valueThis paper utilizes the causal-model theory of categorization to articulate the underlying mechanisms through which the country-of-origin cue is weakened by the cue transmitted by M&A. It further considers the context-saliency of the cue of M&A and clarifies boundary conditions for the effectiveness of this establishment mode to mitigate LOO.

Gender gap in the ownership and use of cryptocurrencies: Empirical evidence from Spain

Over the last few years, the holding and use of cryptocurrencies, as well as the entire ecosystem of decentralised finance (DeFi), has become popular worldwide. However, their acceptance and use are not equal for various reasons; and it is important to know these limiting reasons. There is a gender gap in the acceptance and use of so-called decentralised finance (DeFi), where females have much lower acceptance and usage rates than men. Our study has focused on analysing why this situation occurs. A structured questionnaire was used, including age, level of education and gender, as well as closed-ended questions and questions with respondent ratings (Likert scale). Replicating the Theory of Planned Behaviour (TPB) model, applied in this case to the study on the use and acceptance of cryptocurrencies by females. This has allowed us to generate a sample of 326 people living in Spain, 168 of whom are females. We obtained as a result that the barriers that limit the acceptance and use of cryptocurrencies by females are several: The lack of investment experience in traditional assets, the general lack of knowledge on the part of females about cryptocurrencies; as well as concepts such as blockchain, how to carry out transactions or what an exchange is and how it works. Also, the fact that cryptocurrencies do not inspire any security in females and risk aversion. In contrast, we found no evidence that females do not accept or use cryptocurrencies due to a lack of trust in traditional money, pressure from social media and influencers, fear of not doing the same as the next guy or speculation, which are mostly present in the motivation of males. Nor do we find that income or lack of digital skills among females are barriers to entry.

Follow Me Going Out: Cross-Border Investment of Domestic Venture Capital and Overseas Listing of Portfolio Companies

This paper investigates the impact of cross-border investment of domestic venture firms (VCs) on the overseas listings of their domestic portfolio companies. Using a sample of 1,439 domestic VCs’ first-round domestic investment events collected by Crunchbase and PEDATA, we find that the more cross-border investment experience domestic VCs have, the more likely their domestic portfolio companies are to go public outside China. The findings remain robust after using the instrumental variable method to eliminate endogeneity, the Heckman two-stage regression method to eliminate sample selection bias, and the exclusion of a portion of the sample for reregression. In addition, we further find that foreign VCs participating in follow-on financing play a mediating role in the relationship between the cross-border investments of domestic VCs and the overseas listings of their portfolio companies. This paper reveals the critical path for domestic VCs to go out and bring in foreign VCs to promote overseas listings of domestic firms. The findings of this paper are critical to the layout of domestic VCs’ internationalization strategy and the sustainable development of domestic firms.

The effect of the information channel on the investment decision: The bull and bear market and investment experience as a moderator

The effect of the information channel on the investment decision: The bull and bear market and investment experience as a moderator

Factors Affecting The Intention to Invest in Cripto Assets Among Indonesian Youth

Main Purpose - This study aims to determine the role of financial risk tolerance in mediating the impact of digital financial literacy, investment experience, and e-payment behavior on intention to invest. Method - This research is a type of explanatory research with a survey method and as many as 215 respondents filled out a questionnaire with valid answers which were then used for analysis. Hypothesis testing uses a structural equation model (SEM) and is processed using Smart PLS-SEM.Main Findings - This research proves that there is a positive and significant role of financial risk tolerance in mediating the impact of digital financial literacy, investment experience, and e-payment behavior on intention to invest. In addition, this study shows that most members of the younger generation have a level of risk tolerance or risk profile that falls into the moderate category or loss-adverse category in the aspects of risk speculation, investment risk, and financial risk evaluation. Theory and Practical Implications - This study provides policy directions for related parties to increase digital finance adoption and financial literacy in the context of financial inclusion. This research reinforces that digital financial literacy is important, especially in terms of digital financial knowledge for young people. Novelty - This study uses the risk tolerance profile variable as a variable that mediates the relationship between digital financial literacy and investment intentions using consumer behavior theory.

Muslim Investors' Behavior in Deciding to Invest in Sharia Shares in the Period 2018-2023: A Systematic Literature Review

Purpose: The author's goal in this study is to investigate the factors that influence Muslim investors' decisions to invest in Sharia-compliant shares. This study aims to provide a detailed description of insider investor decision-making behavior. Methodology: Using the Scopus database and Google Scholar, the author analyzed 10 articles published between 2018 and 2023 to map the pattern of behavior of Muslim investors in deciding whether to invest in Sharia shares. Data was collected and reviewed before doing an analysis review, followed by a systematic literature review to support the next study. Results: Findings and results highlight that the behavior of Muslim investors is influenced by several factors, like investor ethics, motivation, patterns of investment, and religious factors. While the factors that influence the decision to invest in Islamic stocks are the level of return and investment risk. The implications of this research are to provide an understanding of the factors that influence Muslim investors' decisions in choosing Islamic equity investments, to provide insight into past investment experiences that influence Muslim investors' decisions, to improve perceptions of the risk of investing in Islamic equities so that investors can reduce risk and achieve better results from their investments. In addition, Islamic financial institutions can provide good services to Muslim investors and the government can take more appropriate steps to develop the Islamic financial market.

A socio-economic examination of participation in socially innovative energy projects

This paper aims to examine the role of citizen investment in scaling up renewable generation through participating or investing in social innovation in energy. It presents an explorative study demonstrating results of large-scale surveys of the general public across twelve countries (11 European plus the USA), representing the views of over 10,000 individuals. These surveys focus on three types of innovative energy business models, namely: energy cooperatives, crowdfunding and peer-to-peer platforms. In particular, we study the socioeconomic, demographic and attitudinal attributes of self-reported early participants in similar energy organizations, and also separately among those who express an unwillingness to participate in the above business models. The findings suggest that factors such as age, education, gender, risk preferences, previous general investment experience and trust in the carbon saving claims of organizations are important in explaining both self-reported previous and future participation in energy initiatives.

People are people: A comparative analysis of risk attitudes across Europe

AbstractIn this paper, we conduct a detailed examination of the determinants of attitudes to financial risk among retail investors in six European countries (Belgium, France, Germany, Italy, Spain and the United Kingdom). We find that respondents from the United Kingdom and Belgium are the most risk tolerant while those from Spain are the least. We observe remarkable similarities in the distributions of risk tolerance across countries despite cultural differences and considerable variations in the extent to which risky investing is undertaken as a routine part of financial planning. We further show that country effects in the cross‐sectional variation of attitude to risk scores are swamped by the impacts of gender, salary and wealth, while financial knowledge and prior investment experience are much more important still. Our results have implications for regulators and those who wish to encourage European investors to consider going beyond bank savings and guaranteed products to more prevalent stock market investing in an era of negative real interest rates.

The gender gap in the ownership of promising land

Using millions of observations compiled from the public administrative data of Taiwan, we find a surprising gender inequity in terms of real estate: Men own more land than women, and the annual rate of return (ROR) of men's land outperform women's by almost 1% per year. The latter finding of gender-based ROR difference is in sharp contrast to prior evidence that women outperform men in security investment, and also suggests a quantity-and-quality double jeopardy in female land ownership which, given the heavy weight of real estate in individual wealth, has important implications for wealth inequality among men and women. Our statistical analyses suggest that such a gender-based difference in land ROR cannot be attributed to individual-level factors such as liquidity preferences, risk attitudes, investment experience, and behavioral biases, as described in the literature. Rather, we hypothesize parental gender bias-a phenomenon that is still prevalent today-to be the key macrolevel factor. To test our hypothesis, we partition our observations into two groups: an experimental group in which parents can exercise gender discretion, and a control group in which parents cannot exercise such discretion. Our empirical evidence shows that the gender difference with respect to land ROR only exists in the experimental group. For many societies with long-lasting patriarchal traditions, our analysis provides a perspective to help explain gender differences in wealth distribution and social mobility.

Psychological and demographic predictors of investment in cryptocurrencies during a crisis in the MENA region: the case of Lebanon

PurposeThe purpose of this study is to discover the motivating factors for cryptocurrency investment during an economic crisis in the MENA region, with reference to the economic crisis of 2019–2022, in Lebanon.Design/methodology/approachThe authors used t-test, and logistic regressions on a sample of 254 Lebanese investors to differentiate between cryptocurrency investors, and non-investors. Linear regressions of a subsample of cryptocurrency investors determined the factors that explained increasing cash investment in cryptocurrencies. Data were collected from investors in Lebanon, which could limit the generalization of the research results across the MENA region.FindingsInvestors differed from non-investors in that they were male, owned investments in the stock, bond and commodity markets, had prior investment experience in cryptocurrencies, were risk-takers and had expectations of high returns. Investors increased the dollar investment in cryptocurrencies, if they were male, as they invested more funds in securities, had previously invested in cryptocurrencies and had stronger risk-taking propensity. Expectations of high returns drove investors to cryptocurrencies, but such expectations do not stimulate further cryptocurrency investment.Originality/valueThis study is an initial attempt to comprehend the reactions of investors in the MENA region to a currency crisis that triggered investment in cryptocurrencies following the collapse of fiat currencies, central bank default and restrictions on bank withdrawals.

Sharia Stocks and Muslim Millennials Investors in Indonesia: Between Religious and Economic Motives

Purpose: The objective of this study was to explore why Muslim millennials in Indonesia prefer to invest in Islamic stocks on the Indonesia Stock Exchange (IDX). Theoretical framework: Muslim millennials prefer stock investments that align with religion and align with the consistency and moral integrity upheld by the Muslim community, including investing. Design/methodology/approach: This study was a qualitative research method with a case study approach. Data were collected through in-depth interviews with ten millennial Muslim investors who invest in Islamic stocks in the IDX. Data analysis was carried out using thematic descriptive analysis. Findings: The findings of this study suggest that millennial Muslim investors in Indonesia prefer to invest in Islamic stocks for the following reasons: adherence to Islamic values and beliefs, ethical investment, risk management, diversification, and the potential for better returns. Research, Practical & Social implications: We suggest further studies to include a case study of a more specific group of Muslim millennials to determine the influence of previous investment experiences, personal characteristics, and financial situation on their preferences in investing in Islamic stocks. In addition, it can also conduct comparative studies among several different countries or cultures to identify the factors that influence sharia stock investment decisions to provide a broader and representative picture. Originality/value: This study provides insights into the factors that drive millennial Muslim investors in Indonesia to invest in Islamic stocks. This study's findings could benefit investors, the capital market industry, and policymakers in developing targeted strategies to attract millennial investors. Additionally, this study contributes to the literature on the Islamic capital market and investment behavior in emerging markets