Investment Behavior Research Articles

Analysis of spatial-temporal evolution and investment model of industrial cross-regional investment network-taking the Pearl River Delta urban agglomeration as an example

Cross-regional investment behavior plays a pivotal role in enterprise development and regional economic growth. Nonetheless, existing investment network analyses often adopt a broad perspective, most studies tend to invest in network models and focus on a particular industry, and pay less attention to investment models in different industries. Therefore, this paper will combine the dual perspectives of space and network to observe the spatial and temporal evolution characteristics of enterprise investment and its investment model. Additionally, it delves into the unique features of investment networks within various industries at the district and county levels. The results show that enterprise investment agglomeration exhibits a development pattern characterized by points, bands, and surfaces, with a notable distance attenuation trend in investment distances. The overall structure of the industry investment network showcases characteristics of being multi-centered and multi-nodal. The investment models across different industries can be categorized into four distinct types. The research conclusion is of great significance to optimize multi-scale intercity investment, realize industrial gradient transfer and promote the coordinated development of industry.

The Impact of Policies Regulating the Development of Private Equity on the Growth of Investment Firms

In the current economic environment, there are many kinds of private investment. The importance of how to ensure that investment companies operate rationally and invest successfully, regulate investment behavior and private equity fund managers of investment companies is becoming more and more apparent. Stable and reasonable regulatory policies are conducive to the promotion of improved profitability of investment companies and the long-term stable development of the capital market, among which the promulgation of the Regulations on Supervision and Administration of Private Investment Funds (the "Regulations") has had a profound impact on the growth of investment companies. This paper focuses on the positive and negative impacts of the Regulations on the growth of companies, and selects representative companies in the capital market services for comparative analysis. The results of the study show that the promulgation of the Regulations further regulates the development of the private equity fund industry, making investors more cautious in their decision-making, and thus promotes the development of the growth of private equity fund investment companies.

Contribution to the Study of the Impact of IFRS on the Quality of Information and Financial Markets: Which Theories are Used?

The aim of this article is to examine the extent to which theories of financial market effi-ciency, agency and signaling can be used to study and understand financial phenomena, in particular conflicts of interest between managers and shareholders, and investor behavior in financial markets following the transition to International Financial Reporting Standards (IFRS).

Financial literacy and investment behavior of individuals in Pakistan: Evidence from an Environment prone to religious sentiment

We explore the relationship dynamics between individual’s financial literacy and objective-oriented investment behaviour (OOIB) using the survey data from 686 investors in Pakistan. Drawing impetus from the social cognitive theory, we find that financial literacy significantly influences OOIB, which is subject to the individual’s belief in his/her capacity to manage their own investment portfolio (financial self-efficacy). However, we do not find the hypothesized moderating effect of financial risk attitude on the nexus between financial self-efficacy and OOIB. Our research indicates that factors such as gender, age, education, occupation, income level, and investment experience have a considerable impact on individual's confidence and risk-taking propensity in achieving financial goals. These findings provide valuable insights for policymakers and government bodies aiming to address financial concerns and develop prudent investment policies in an environment influenced by religious sentiments.

Market reactions to capital increases: Insights from asset revaluation in pharmaceutical companies on the stock exchange

This study investigates the impact of capital increases on market reactions, focusing specifically on pharmaceutical companies listed on the Tehran Stock Exchange (TSE). We analyze stock returns over a six-month window: three months preceding and three months following the announcement of capital increases. Employing the market model, we assess investor responses and the revaluation of assets associated with these capital injections. Our comprehensive sample includes 200 pharmaceutical firms selected through systematic random sampling, covering the period from 2017 to 2023. The results reveal that asset revaluation significantly enhances investor reactions compared to capital increases stemming from cash contributions and retained earnings. Furthermore, our findings underscore the critical role of information transparency from company management in shaping market responses. This research contributes to a deeper understanding of investor behavior and informs management strategies related to capital restructuring in the dynamic pharmaceutical sector.

Peran Influencer dalam Investasi Cryptocurrency: Literasi Keuangan Digital Mediator ataukah Moderator?

In the context of significant growth in cryptocurrency in Indonesia, investment influencers on social media often provide information that affects investment behavior. Digital financial literacy becomes crucial in ensuring wise investment decisions, especially in understanding the risks and potential benefits of cryptocurrency. This research explores the role of influencers in cryptocurrency investments in Indonesia, with a focus on digital financial literacy as a mediating factor. Data were collected using a survey method with a sample of 100 respondents. Data analysis employed SEM-PLS. The study results indicate that influencers and digital financial literacy affect cryptocurrency investment decisions. Digital financial literacy acts as a mediator, not a moderator. These findings highlight the importance of comprehensive financial education in addressing this increasingly popular investment trend.

Religious Investor Sentiment, Shariah Compliance Impact, and Theological Risk: Evidence from Bursa Malaysia

This study examines the financial implications of religious restrictions by analyzing how changes in the Shariah compliance status of stocks affect their price and trading volume. Employing the market model in an event study approach and using data from Malaysian firms between 2000 and 2016, the study focuses on 30 announcements from the Security Commission Malaysia’s List of Shariah Compliant Securities (LSCS), resulting in 370 additions and 284 deletions from the compliance list. The findings indicate that the inclusion of stocks in the compliance list generates longterm demand driven by Islamic institutional and Muslim retail investors, leading to a permanent increase in abnormal returns and trading volume. Conversely, the removal of stocks from the compliance list induces short-term negative abnormal returns and increased trading volume, reflecting selling pressure. These results contribute to understanding the financial consequences of religious restrictions, highlighting the influence of Shariah compliance on stock market performance and investor behaviour.

Understanding Investment Motivation in the Young Generation Using Self-Determination Theory

This study aims to analyze the investment motivation of students using the Self-Determination Theory (SDT) framework. SDT emphasizes three basic psychological needs that influence motivation: competence, relatedness, and autonomy. Data were collected through a survey involving students from various disciplines at Universitas Negeri Makassar (UNM). The findings reveal that fulfilling the need for competence through investment training programs and seminars, fostering relatedness through investment communities and discussion groups, and supporting autonomy in investment decision-making significantly enhance students' investment motivation. The conclusion of this study highlights the importance of institutional support in the form of education, community building, and the provision of investment platforms that empower students to make independent decisions. These findings have practical implications for universities and other educational institutions, suggesting the need for effective strategies to boost financial literacy and encourage investment participation among students. By addressing these psychological needs, educational institutions can play a pivotal role in shaping the investment behaviors of the young generation.

Investment Decision-Making Among Students Using Prospect Theory in Behavioral Economics

Investment decision-making is crucial in finance, particularly for students planning their financial futures. This study focuses on students at Universitas Negeri Makassar (UNM) to understand how psychological factors influence their investment decisions. Utilizing Prospect Theory from behavioral economics, the research examines key factors such as risk perception, profit expectations, and time preferences. The study involved a survey of UNM students, and the descriptive analysis reveals that students tend to make decisions influenced by behavioral biases, loss aversion, and risk preferences. The findings indicate that students are consistent in their financial decision-making but are significantly impacted by psychological biases, particularly in their tendency to avoid losses and their cautious approach to risk and uncertainty. Overall, the investment behavior of UNM students is shaped by the psychological factors outlined in Prospect Theory, highlighting their reliance on subjective perceptions and loss avoidance. This research provides valuable insights for developing more effective financial literacy strategies and promoting wiser investment decisions among students. Additionally, it contributes to the application of Prospect Theory in the context of student investment decision-making.

The Influence of Financial Literacy on The Investment Behavior of Indonesian Migrant Workers in Japan

This study aims to analyze the influence of financial literacy on the investment behavior of Indonesian migrant workers in Japan, taking into account factors such as age, education level, and income. The research focuses on 50 Indonesian migrant workers in the Miyazaki area of Japan. Financial literacy is considered a key factor that can affect investment behavior, helping these workers make better investment decisions. A quantitative approach was employed, using descriptive statistical methods and correlation analysis based on questionnaire data that measured respondents' understanding of financial literacy and its impact on their investment behavior. The results show that financial literacy has a positive and significant effect on investment behavior. Higher levels of financial literacy are associated with improved investment decisions. Additionally, age, education, and income also have a significant impact. These findings highlight the importance of developing more effective financial literacy education and training programs for Indonesian migrant workers in Japan, as improved financial literacy can lead to better investment decisions, increased access to investment opportunities, and enhanced financial well-being.

Manipulating stock prices based on insider information

Purpose This paper aims to investigate the trading behavior of insider investors before and after information releases, identifying information-based manipulation in the stock market and the characteristics of companies whose stock prices are manipulated. Design/methodology/approach This paper employs logit regression method and an event study approach, utilizing hand-collected data from 2010 to 2022, with information categorized into negative and positive types. Findings The results show no evidence of insider trading or negative information-based manipulation in both high and low transparency firms. However, in highly transparent companies, the Board of Directors (BOD) avoids direct manipulation by using relatives to evade market supervisors. In low transparency companies, both the BOD and family members (FM) exploit positive information to benefit personally by buying shares before releasing favorable news, causing a sharp stock increase, and selling afterward. Continued buying by the BOD and FM also suggests likely positive news announcements. Practical implications The characteristics of information-based manipulation in companies, as provided by this study, help individual investors avoid investing in stocks that are highly susceptible to manipulation. Originality/value Empirical research on information-based manipulation is scarce due to limited secondary data. Our study uses transaction data from insider investors in a frontier market with low transparency and high information asymmetry. This enables us to analyze information-based stock price manipulation. We identify manipulation by comparing insiders' trading behavior with their market information releases, resulting in stock price fluctuations greater than 5%.

Influence of Digital Financial Literacy on Investment Behaviour of Nepali Investors

This study investigates the influence of digital financial literacy on individual investment behaviour of Nepali investors. In order to explore the influences of digital financial literacy on individual investment behaviour, causal-comparative research design was used and responses from 358 investors were collected through a survey questionnaire. The convenience sampling method ensured statistical reliability and diversity in perspectives. Questionnaires were distributed through various platforms, ensuring anonymity and confidentiality. Descriptive statistics, regression, reliability and correlation were some of the tools used for a thorough study of the data. These methods enabled non-parametric testing and multiple regressions by providing a quantitative comprehension of the variables. The research establishes that digital financial literacy significantly influences investment behaviour in Nepal. The statistical correlation matrix and regression analysis, with an R Square of 0.589, highlight the interconnectedness of digital financial proficiency, financial literacy, financial goal management and individual investment behaviour. Investment behaviour is significantly influenced by financial literacy, digital financial literacy and financial goal management, having the p-value less than 0.05. However, cyber security and awareness did not show a significant relationship with investment behaviour. Policymakers in Nepal are focusing on enhancing digital financial literacy to empower individuals and cultivate a financially literate society. Financial institutions and educators should leverage digital platforms to enhance financial education and prepare individuals for informed investment decisions in Nepal’s evolving stock market landscape. Examining the digital financial literacy of Nepali investors can help in making more informed decisions regarding investments by looking at structures, comparing findings with those from other developing nations and assessing the effects of educational efforts.

The Complex Mechanism of Social Networks' Influence on the Behavior of Institutional Investors

It examines the mechanism of influence on institutional investors by social networks, specifically looking at the dual roles of information dissemination and social capital accumulation. This paper collects financial data, transaction records, and social network data concerning institutional investors. Descriptive statistical analysis and multivariate regression analysis were adopted to test the critical impact of social networks on investment decisions. The results show that information sources and social capital have a significant positive impact on investment amounts. Institutional investors who can obtain direct information sources have significantly increased their investment amounts, and the accumulation of social capital also has a significant promoting effect on investment amounts. Descriptive statistical analysis reveals the differences in the social capital and information sources of different investors on their investment behaviors. Regression analysis further quantifies these effects. It can be seen that information sources and social capital were 200000 and 10000 respectively, while the P value was far less than 0.01, highly significant in general. This paper not only verifies the key role of social network in institutional investors' behavior but provides a very important reference to sponsoring actual investment decisions. It shows how social networks have a significant role in information dispersion and accumulation of social capital on the behavior of guiding institutional investors. This promotes more extensive use of the scope of social network theory applications in the context of finance literature and provides newer perspectives and strategies for institutional investors.

The Influence of Financial Inclusion on Stock Market Participation in Nepal: Exploring the Mediating Effect of Financial Knowledge

This paper focuses on financial inclusion (FI), a fast-embracing topic with potential drivers of economic growth and the improvement of individual financial well-being. This study contributes to the existing literature by analysing how financial inclusion influences stock market participation (SMP) in Nepal, explicitly emphasising the intermediary role of economic knowledge. The study employed a causal-comparative research design, and the data were collected from 403 individual investors actively participating in the Nepal Stock Exchange (NEPSE) trading. The statistical tools used to meet the objectives of this research are descriptive statistics, factor analysis, and structure equation modelling. The study results show that FI and knowledge influence individual investor participation in the stock market. The result also indicates that FI is positively related to stock market activity, while it is essential to enhance citizens' FK significantly. Further, mediation analysis shows that FK partially mediates the relationship between FI and SMP. This suggests its pivotal role in narrowing the gap between access to financial services and actual investment behaviour. These findings underscore the critical role of FI in creating an inclusive and participatory financial ecosystem within Nepal. Longitudinal data in future research can capture the evolving dynamics of FI and its long-term impact on SMP.

How does carbon emissions trading scheme affect the investment efficiency of companies? Evidence from China

Carbon emissions trading scheme (ETS) will change the internal and external operating environment of related companies, increase new carbon reduction costs, and may affect their investment behavior and decision-making. This study constructs the policy effect evaluation model to evaluate the net effect of China's ETS pilot policy on the investment efficiency of related companies in high-carbon industries. This study indicates that: first, China's ETS pilot policy has reduced the inefficient investment of related companies by 11.40% during the sample period. Second, innovation ability plays an enhanced moderating effect in the inhibitory effect of China's ETS pilot policy on the inefficient investment of related companies in the short term, but the effect is weakened in the long-term. Third, the policy effect is relatively obvious for non-state-owned companies and companies with more institutional shareholdings. This research has important reference value for the continuous improvement of China's national carbon market, and the steady transformation from simple investment-driven to investment-efficiency-driven economic development in China.

Comparative Analysis of Financial Forecasting Techniques in Machine Learning for Netflix Stock Price Prediction

Abstract - In the stock market, predicting the price of stocks is still a hot research issue. One of the most challenging tasks in the field of computation is prediction of the stock market. The prediction depends on a number of variables, including physiological vs. Physical elements, rational vs. irrational investor behavior, investor attitude, market rumors, etc. All these factors work together to make stock values unpredictable and very challenging to predict accurately. Supervised Machine Learning (SML) algorithms is used to predict future value by using past stock price data. ML approaches have the ability to reveal trends and knowledge that hadn't previously noticed, and they can be used to predict that are incredibly accurate. The primary objective of this project is to predict stock prices of Netflix for analyzing profit on day closing. Data was gathered between the years of 2002 and 2022, and separated into two parts: training set and testing set. Only the testing portion is to be used for the final forecast. Four machine learning algorithms such as linear regression, decision tree, MLP, and KNN are used to forecast the close value of the Netflix stock price. This project's output adds to the body of knowledge on predicting stock prices and offers investors some new information for accurate prediction of stock prices.

Financial Literacy and Investment Behaviour among Working Women in Higher Education in India

Financial literacy is a critical skill for individuals, empowering them to make informed financial decisions and improving their investment behaviour. This paper explores the level of financial literacy and its impact on the investment behaviour of working women in higher education in India. The study employs a qualitative approach, gathering data through surveys and interviews with women engaged in various academic and professional fields. The findings indicate that while there is a growing awareness of financial instruments among this demographic, significant gaps in knowledge persist. Factors influencing investment behaviour include educational background, perceived risk, and access to financial resources. The results highlight the importance of financial education programs tailored specifically for working women in academia to foster better investment practices and enhance their financial security.

Behavioral Biases and Decision-Making in Investment among working individuals in the education sector

This study investigates the impact of behavioral biases on investment decisions among working individuals within the education sector. Behavioral finance theory serves as the theoretical foundation, emphasizing the role of psychological factors in shaping investment choices. The study employs a mixed-methods approach, combining surveys and in-depth interviews to gain insights into the investment behavior of educators, administrators, and support staff. Our findings reveal that a range of behavioral biases, including loss aversion, overconfidence, and herding, significantly influence investment decisions. Working professionals in the education sector often exhibit a strong preference for conservative investment strategies, even when market conditions may suggest otherwise. Psychological factors, such as fear of losses and a tendency to follow trends, play a vital role in shaping investment behavior. These biases are further exacerbated by a lack of financial literacy and investment education. The implications of this research suggest a need for targeted financial education programs to mitigate behavioral biases and enhance decision-making among working individuals in the education sector. Addressing these biases can lead to more informed and diversified investment strategies, potentially improving financial security and long-term wealth accumulation for this demographic. This abstract provides a brief overview of the research focus, methodology, key findings, and the potential implications of the study. It gives readers a clear understanding of the research's scope and significance.

The confusion of taste and consumption: Evidence from a stated-choice experiment

In this paper, we conduct a stated-choice experiment with German retail investors to examine how labeling sustainability information as financially material or immaterial influences investment decisions. Results reveal a strong non-pecuniary preference for sustainability. However, emotional affect leads some investors to erroneously project sustainability information onto firms’ financial performance, regardless of financial materiality. When poor sustainability ratings are labeled as financially material, investors demand further an additional return premium, indicating a misinterpretation of these labels as financial indicators. This bias is particularly evident among investors who incorporate sustainability for pecuniary reasons in the experiment but do not use such information in real-life investing. Our findings suggest that while sustainability labels can guide investor behavior, they also risk distorting financial expectations. This underscores the need for careful design in sustainability disclosure practices and better investor education on the implications of sustainability information.

Gamified Investing: An Analysis of Investment Behaviour of Retail Investors Using Financial Applications

Gamified Investing: An Analysis of Investment Behaviour of Retail Investors Using Financial Applications