Investment Decisions Of Investors Research Articles

INTEGRATED REPORTING IMPRESSIONS AND INVESTMENT DECISIONS OF INDONESIAN INDIVIDUAL INVESTORS - A PRELIMINARY RESEARCH

ABSTRACTUnfortunately, there is still people in the name of economic development conducting business in an irresponsible way which creating not only profit but also environmental degradation from waste and pollution that damages ecosystem, loss of resources reserves, and put aside the wellbeing of the workers. As sustainable development becomes a world-wide hot topic, the importance of conducting business in a more sustainable way by taking into account the triple bottom line (People, Profit, Planet or 3P) is starting to get highlight. Companies play an important role into sustainable development and are key contributors to economic, environmental and social wellbeing. Based on these and the increase in society and company awareness in sustainable development, company is no longer seen as money generator. Stakeholder starts to look beyond number on financial statement for company’s information. Report, as a way of company to share key information to its stakeholder, shifting into a report which is not only presenting company’s key financial information but also key non-financial information (both internal and external information). Integrated reports aiming to facilitate the stakeholder of a company’s business to understand beyond the number presented on the financial statement. This preliminary research aiming to understand more regarding issues in individual investor includes basis in investment decision making, the type of individual investor, etc.; their view on highlighted information in integrated report and annual report; and also to be the basis for following research with the same name. Research method used is questionnaire send to active individual investors in Indonesia Stock Exchange. Question is based on literature review and pilot interview. The result of this interview analyzed by using thematic analysis to make conclusion and addressing research question. There is a quiet important role of analyst report in individual investor investment decision making. Individual investor also taking into account non-financial information to support their investment decision making. Information such as company profile, medium-term business prospect (3-5 years), Company’s strategic focus area: performance and prospects, Operational Performance, and Manufactured capital labeled as important and very important by all respondents and information such as corporate governance and intellectual capital get unfavorable response from respondents. Keyword: Integrated Report, Investment decision making, Indonesia, Sustainability Development

Financial Statement Analysis a Tool for Investment Decision Making in the Gambia: Case of Trust Bank Gambia Limited

This study intended to investigate financial statements analysis and investment decision making in The Gambia. The study questions were to examine how financial statement analysis aid potential investors in investment decision making, evaluate the performance of a company for investment decision making, and appraise the fundamental use of financial statement analysis information. The approach was to work with potential investors, big bank depositors and shareholders to achieve the set objectives. The paper used accounting ratios and financial report analysis, namely, liquidity ratio, efficiency ratio and profitability ratios, which might affect the financial performance of the firm. In summary, the approach and research methodologies involved, desk study to review current literatures, and the actual field research study. Data analysis was conducted base on data collected. The explanatory analysis was used. The findings show that financial statement analysis is critical in investment decision making. The respondents appeared to be knowledgeable with financial variables specifically, the liquidity ratios and profitability ratios. The government intervention in financial reports, and unqualified audit reports help vitally in having an accurate opinion. Conclusion was based on findings that investor needs to get proper interpretations of financial statement analysis reports, making consultations and get other none financial information in investment decision making. The findings of this study show that 80% of the respondent was in favor that financial statement analysis is very essential in making an investment decision. This is true.

“Impact of financial literacy and Risk Tolerance on Investment Decision”

Researcher has followed a widespread approach for explain the relationship between financial literacy, risk tolerance and investment decision. Recently there has been increasing interest in studying the behaviors of investors and the factors which affecting the investment decisions of investors due to a synchronized approached followed by a large number of investors. A Study has been shown that a large number of investors look after the safety of their money not higher return.[1] Investment decision is a crucial decision which is influenced by various factors as financial literacy, income level, financial soundness and various other demographic and sociological factors. The choice of investment alternative of is broadly depends upon the risk tolerance level of investors.[2] On the basis of certain conclusion, cover from precious research, the researcher in this study defines the relationship between financial literacy, risk tolerance and financial decision making of investors through exploratory research tools. For explaining this relationship researcher gives a mediation model. By using this mediation model a direct relationship between Financial Literacy and Risk Tolerance and between Financial Literacy and Investment Decision via Risk Tolerance, can be explored.

CORPORATE GOVERNANCE: THE GATEWAY TO A ROBUST CORPORATE FINANCIAL PERFORMANCE IN MALAYSIA

In recent years, with corporate scandals and the global financial crisis, the emerging concept of corporate governance has received increasing attention in the corporate world in these days. It is seen as a moral obligation and includes supporting the consistency of the law and showing ethical guidance. Corporate governance is seen as an important tool for the financial performance of companies, and investor investment decisions have become a more serious topic, so the relationship between corporate governance tools and measurement of financial performance has attracted researchers' interest in the past decade mainly in developed and developing cities. In this study, we attempted to examine the impact of corporate governance on corporate financial performance in Kuala Lumpur using a sample of 215 companies on KLSE. Like previous research, firm, age, firm size, board size, CEO duality, board composition, board committees is the independent variables and their influence is to measure the financial ROA, ROE and Tobin's q , all kinds of test is used to investigate the relationship such as descriptive analysis, Pearson moment related test and regression using first data over a period of time.

A study on the factors affecting household solar adoption in Kerala, India

PurposeRecent research on the energy system highlights the need for understanding the bandwidth of drivers and inhibitors of household investor's behaviour in rooftop PV (or photovoltaic power system) and to fit the broader socio-economic context in which they are deployed. However, apart from few exceptions, these newer perspectives have not been duly applied in the research on rooftop PV. This paper aims to fill this gap and to shed new light on rooftop PV investment decisions.Design/methodology/approachThis study has been conducted with the primary data collected using two data sets of 237 households and 387 households of Indian southern state Kerala using survey-based questionnaire. The findings from first data set revealed that households considering the adoption of PV were likely influenced by six distinct factors, three motivators and three inhibitors. Second data set for multi-state analytic approach was proposed whereby the research model was tested using structural equation modelling (SEM). The outcomes of SEM were used as inputs for an artificial neural network (ANN) model for forecasting investor investment decision in in renewables. The ANN model was also used to rank the relative influence of significant predictors obtained from SEM.FindingsIn line with the risk–return framework, government subsidies act as primary motivator which helps in overcoming the initial risk of investment in the new technology. Further, low prices and low cost of maintenance are some of the financial motivators which may likely mitigate the long-term apprehension of returns and maintenance cost. Lastly, the strongest motivators of PV investment come from the environmental and financial motivator in the form of PV subsidies, which further solidifies the role of policy interventions in investment decision. The ANN model identified the technical barrier and knowledge and awareness factors play a significant role in forcasting the investor investing decision.Practical implicationsThe study results will be useful for policymakers for framing strategies to attract and influence their investment in renewable energy.Originality/valueBuilding upon behavioural finance and institutional theory, this paper posits that, in addition to a rational evaluation of the economics of the investment opportunities, various non-financial factors affect the household's decision to invest in renewables.

Effect of Trading Companies Share on Investors Attitude and Financial Behavior

Pakistan is under developing country and it has an unpredictable market nature of shareholder-investors observe the company’s performance. This research could help to companies in understanding financial behavior, attitude and investors’ satisfaction in stock trade. Financial behavior is comparatively new subject in Pakistan therefore; this study has examined the financial behavior and attitude of investors. The behavioral finance that has been attempt to understand the positive experiences influences investors’ financial behavior. This study has find out that investor satisfaction is strongest in influence of positive financial behavior of investor and trader in stock trading; positive experience and investors satisfaction are strengthens the investment decision of investors and increases behavior loyalty to prefer over competitor. The findings of this study has showing that investment gains results in more positive financial behavior and experience which leads investors satisfaction and preference the company over competitor. However negative financial behavior and complain induce by loss and loss also results decrease in behavior and attitudinal loyalty which leads the disappointment and regret. Purpose – The main purpose of this study is to find factors that effects the positive experiences with stock trading on investors’ and trader’s satisfaction, attitudinal loyalty and financial behavior in Pakistan. Design /methods and approach – The research framework links with experiences in stock trade for positive (negative) experiences, attitude and financial behavior is developed. The research framework is measured with data from sample of Karachi; the data is analyzed in smart PLS which is variance based structural equation modeling using partial least square path modeling, non-parametric software. Research Limitation – This study is focused on trading experience with company’s active investors and traders in banking industry in Pakistan. The future research could be research in other sectors with inter-related issue of investors and traders in stock trade. Originality/ Value – This is the first study in this research area; this study is determined the experiences with positive (negative) financial behavior, attitude and investors satisfaction of investors and traders in stock trade. Therefore adding in this area of study, which will help in understanding the investors and traders attitude and financial behavior in financial market. Keywords – Financial Behavior, Investor satisfaction and Attitudes, Traders or Brokers and Investors Behavior, Positive and negative Experience. Paper type – Research Paper DOI: 10.7176/RJFA/11-12-09 Publication date: June 30th 2020

Role of financial and non-financial information in determining individual investor investment decision: a signaling perspective

PurposeThe purpose of this study is to examine the role of financial and nonfinancial information in determining individual investor's investment decisions by analyzing the mediating effect of corporate reputation.Design/methodology/approachThe approach of this study is deductive; therefore, the quantitative strategy is used for data collection. Primary data are collected from individual investors actively involved in stock trading at Pakistan Stock Exchange (PSX). Structural equation modeling is used to assess structural relationships.FindingsThe key findings of this study posit that financial and nonfinancial information positively influence an individual investor's investment decision. This study also provides empirical evidence confirming the mediating role of corporate reputation. Categorically, the findings indicate that financial and nonfinancial information remain significant to build perceived corporate reputation and influence investor's investment decisions.Practical implicationshe proposed model presents novel insight into the individual investor's investment decision in the context of Pakistan. The findings of this study remain robust for firms listed on the stock exchange and individual investors involved in stock trading. The results of this study are substantial to individual investor's and broker for making informed financial choices. Moreover, the firms listed on the PSX can use the findings to establish improved corporate reputation through reporting detailed financial and nonfinancial information.Originality/valueStudies based on subjective measures in finance are lacking. This study contributes to the existing literature of behavioral finance by analyzing variations in investor's investment decisions explained by informational factors. The proposed model testifies the mediating role of corporate reputation in guiding investor's investment decisions, which has been overlooked by past studies. Therefore, this study seeks to fill this gap in the context of the PSX.

A dinâmica da taxa de câmbio em países emergentes: uma perspectiva Pós-Keynesiana dos casos do Brasil e do México entre 2000 e 2017

Na perspectiva pós-keynesiana, a taxa de câmbio é considerada um tipo de ativo financeiro sujeito às decisões de alocação de portfólio dos agentes que atuam em um sistema monetário e financeiro internacional hierárquico e assimétrico. Baseado nesta perspectiva, este artigo realiza um estudo de caso comparativo das taxas de câmbio do Brasil e do México nos anos 2000, destacando a influência de fatores institucionais. O estudo cobre seis fases do ciclo financeiro internacional e utiliza o Método de Média Móvel Exponencial e o coeficiente de Pearson para analisar a relação entre as taxas de câmbio e os determinantes da equação keynesiana. Os resultados mostram que, embora as taxas de câmbio estudadas tenham um co-movimento semelhante, existem diferenças importantes em relação à sua volatilidade e ao impacto desses determinantes.

Effects of Earnings Management to Investor Decision –Empirical Evidence in Vietnam Stock Market

Earnings result reflects business performance and hence earnings quality plays an important role in making investment decision of investors. However, little research has been done regarding the effects of earnings management on investor decision. In this study, we examine the effects of earnings management on investor decision and look for empirical evidences with a sample consisting of 2,980 firm-year observations from 669 companies listed on two main stock exchanges of Vietnam during the five-year period 2013-2017. This study conducts a multivariate linear regression, in which investor decision is the dependent variable and earnings management is one of the regressors. The random effect model, which is the most appropriate model in our study, reveals that the higher level of earnings management of a company, the more likely investors decide to own shares of that company, implying a warning sign for investors. Besides, investors prefer to own shares of companies with high ROE and low financial leverage, while investor’s decision is not significantly affected by type of auditors, revenue growth or asset size of the companies. However, price factor is not examined in this study and could be an extension of future research.

Factors influencing investment decisions of individual investors at Nepal stock exchange

The behavior of individual investors is concerned with choices regarding purchasing small quantities of securities for their own account. Investment options are also supported by decision-making instruments. It Is assumed that information structure and the market related factors systematically affect the investment decisions of individuals as well as market outcomes. The main purpose of the analysis was to identify the factors affecting individual investors’ investment decisions on the Nepal Stock Exchange. The study was conducted on the 214 responses received from the individual investors based on the random sampling method Data for the research were collected using a structured questionnaire distributed to the respondents. The questionnaire constituted 35 items. The respondents were individual investors. In this study, data were analyzed using frequencies, mean scores, standard deviations, percentages, and factor analysis techniques. The study confirmed that there appears to be a certain degree of correlation between the factors defined for the average equity investor by behavioral finance theory and prior empirical evidence. The researcher explored that the most significant factors shaping individual investment decisions were: statement of the government officials, expected capital increase, firm’s status in industry, diversification purpose, the attractiveness of non-stock investment, ease of obtaining borrowed funds, opinions of the firm’s majority stockholders, family member opinions, recent price movement in a firm’s stock, fluctuations in the stock index, rumors, expected corporate eating, stock marketability, the results of technical analysis, the dividend paid, perceived ethics of firm, the reputation of the firm’s shareholders, and feeling for a firm’s product and services. The results of this research will provide an understanding of the different decisions to be taken by investors on the basis of the prevailing factors and the possible consequences of each decision. The analysis would also help to recognize the most significant factors in the behavior of the company’s investors as their potential policies and plans will be impacted as the investment decisions of investors will determine the strategy to be used by the company.

Related Research on News Sentiment Tendency and Stock Price Fluctuation

In recent years, with further development of the Internet and artificial intelligence, the research on using news sentiments, and then predicting investor behavior has become more feasible. Based on the news information obtained from the Internet, this article analyzes the investor ‘s emotions about the news, further predicts the behavior of investors, and then the rise and fall of investment asset prices. We use news sentiment tendency and stock price of listed companies to analyze whether the news sentiment really affects the stock price and the degree of its influence.The research results of the thesis are divided into two parts: (1) A CNN neural network capable of analyzing news that may have an impact on stock prices in the near future is designed and trained to obtain a timely response and form a simulated investment decision for investors to adjust the investment strategy timely; (2) Combined with the economic indicators, this article uses the LSTM neural network to comprehensively investigate whether the emotional tendency of the news has a significant impact on the stock price. This article draws four kinds of images, which can test the accuracy of the model from different angles and guide consumers’ investment.

Altman Z-Score Vs Zmijewski X-Score Dalam Memprediksi Kebangkrutan Perusahaan (Studi Kasus PT Tiga Pilar Sejahtera (AISA) Tahun 2015-2017)

Many kind of methods for predicting bankruptcy have their respective characteristics and each methods have different characteristics. The results of the calculation of each method can give the same or even different results. In this study intended to predict whether the PT Tiga Pilar Sejahtera Food, Tbk (AISA) the results of the Altman Z-Scores and Zmijewski calculations have the same results, both of which can predict the company bankrupt, not bankrupt, or both models produce different results. In conducting this research, the author uses descriptive study methods and case studies. The data used are secondary data obtained from the company's official website. The research proves that: (1) Altman Z-Score calculation predicts that AISA indicates bankruptcy in the 2015-2017 period; (2) Zmijewski X-Score calculation predicts that AISA is in safe condition; (3) There are differences in the calculation results between Altman Z-Score and Zmijewski X-Score; (4) Differences can be triggered by differences in the ratio components used in the calculation of each method. This research is only a description of the company's condition which is not 100% correct. The results of the calculation methods are used as an evaluation in the future so that the company can improve its performance. This research can also be used as an illustration to make investment decisions for investors.

An Improved Group Decision-Making Model for the Investment Options of Small-Scale Photovoltaic Systems Based on Cumulative Prospect Theory and Choquet Integral

With the development of photovoltaic (PV) industry, installing small-scale PV systems which are integrated into the buildings becomes popular. Therefore, it is important to make optimal investment decisions for investors and consumers. This paper proposes an improved group decision-making method which integrates the cumulative prospect theory and Choquet integral for the investment options of small-scale PV systems. From the perspective of sustainability, the alternatives are evaluated by four criteria, including economic benefits, solar energy condition, carbon emissions and social benefits. Since the performances of criteria are given by decision makers as linguistic variables, the proposed method measures the criteria values by intuitionistic trapezoidal fuzzy numbers. Then the alternatives are evaluated and ranked to determine the optimal option. Finally, the proposed method is implemented in a case study to illustrate its feasibility and effectiveness.

Emergent Sentiment in Financial Markets: Sentiment Flow from Social Media to Mass Media

Mass media sentiment of financial news significantly influences investment decisions of investors. Hence, studying how this sentiment emerges is important. In years past this was straightforward, often dictated by journalists who cover financial news, but this has become more complex now. In this paper we focus on how social media sentiment affects mass media sentiment. Using data from Sina Weibo and Sina Finance (around 60 million weibos and 6.2 million news articles) we show that social media does influence mass media sentiment emergence for financial news. The sentiment consistency between social media reaction and prior news articles amplifies the persistence of mass media sentiment over time. By contrast, we found limited evidence of social media reducing the persistence of mass media sentiment over time. The results have significant implications for understanding how two types of media, treated separately in the literature, may be connected.

An Analysis on Impact of Behavior Finance on Investment Decision of Investors in Amravati City

An Analysis on Impact of Behavior Finance on Investment Decision of Investors in Amravati City

Sürü Davranışının Hisse Senedi Fiyat Hareketliliğine Etkisi: BİST 100 Örneği1 (Effect of Herd Behavior on Stock Price Mobility: Example of BIST 100)

Purpose – The herd behavior, which affects the investment decisions of investors and causes them not to be rational, is considered as a concept included in behavioral finance. According to behavioral finance, the reason why investors cannot be rational in their investment decisions is due to some anomalies and herd behavior. This study aims to demonstrate the effect of herd behavior, which is a phenomenon affecting the prices of investors' financial transactions, on the stocks traded on Borsa Istanbul in financial markets. Design/methodology/approach – There are several models in the literature to measure herd behavior. In this study, it has been tried to determine the herd behavior, which is observed in Borsa Istanbul, by choosing the model that the researchers perceive as the highest in recent years, while choosing between the herd behavior models. In this study, the cross-section variability of Beta coefficients was analyzed and analyzed with Hwang and Salmon (2004) model. Findings – In the study, the existence of herd behavior was tested in Borsa Istanbul between 2009 and 2018. In the period between 01.01.2012 and 31.08.2018, the results of 233 analyzes made on a monthly basis during the period of 01.01.2012 - 31.08.2018, between months of 01.01.2012 - 31.08.2018 in 80 months on a monthly basis were found findings of herd behavior in a total of 35 months. Discussion – The rational investor perception defined by the effective market hypothesis has been transformed by behavioral finance and herd behavior. Another type of illusion is that investors simulate each other's financial decisions. This situation is called as behavioral behavior in behavioral finance literature and it appears to affect price mobility.

An Analysis on Impact of Behavior Finance on Investment Decision of Investors in Amravati City

An Analysis on Impact of Behavior Finance on Investment Decision of Investors in Amravati City

An assessment of the influence of personal branding on financing entrepreneurial ventures

This research explores the influence of an entrepreneur's personal brand in attracting capital, by examining the validity of the Entrepreneurial Brand Personality Equity (EBPE) model of Balakrishnan and Michael (2011). Its particular concern is whether investors provide funding to an entrepreneur's idea, or, to the entrepreneur behind the idea. Concomitantly, it seeks to identify the variations in the importance accorded by different investors to the several variables of the EBPE model, and whether these variations-and also the stages of business-influence the final investment decisions of investors. The findings of this mixed methods study hold significant implications for various stakeholders, and suggest that the presence of the EPBE model's dimensions in an entrepreneur are very necessary for attracting investors' capital. The personal branding of the A-team in particular, clearly emerged as the most critical variable of the EBPE model, based on the type of investor and stage of the entrepreneurial venture.

A macroscopic portfolio model: from rational agents to bounded rationality

We introduce a microscopic model of interacting financial agents, where each agent is characterized by two portfolios; money invested in bonds and money invested in stocks. Furthermore, each agent is faced with an optimization problem in order to determine the optimal asset allocation. The stock price evolution is driven by the aggregated investment decision of all agents. In fact, we are faced with a differential game since all agents aim to invest optimal. Mathematically such a problem is ill posed and we introduce the concept of Nash equilibrium solutions to ensure the existence of a solution. Especially, we denote an agent who solves this Nash equilibrium exactly a rational agent. As next step we use model predictive control to approximate the control problem. This enables us to derive a precise mathematical characterization of the degree of rationality of a financial agent. This is a novel concept in portfolio optimization and can be regarded as a general approach. In a second step we consider the case of a fully myopic agent, where we can solve the optimal investment decision of investors analytically. We select the running cost to be the expected missed revenue of an agent and we assume quadratic transaction costs. More precisely the expected revenues are determined by a combination of a fundamentalist or chartist strategy. Then we derive the mean field limit of the microscopic model in order to obtain a macroscopic portfolio model. The novelty in comparison to existent macroeconomic models in literature is that our model is derived from microeconomic dynamics. The resulting portfolio model is a three dimensional ODE system which enables us to derive analytical results. Simulations reveal, that our model is able to replicate the most prominent features of financial markets, namely booms and crashes.

Portfolio optimization and model predictive control: A kinetic approach

In this paper, we introduce a large system of interacting financial agents in which all agents are faced with the decision of how to allocate their capital between a risky stock or a risk-less bond. The investment decision of investors, derived through an optimization, drives the stock price. The model has been inspired by the econophysical Levy-Levy-Solomon model [ 30 ]. The goal of this work is to gain insights into the stock price and wealth distribution. We especially want to discover the causes for the appearance of power-laws in financial data. We follow a kinetic approach similar to [ 33 ] and derive the mean field limit of the microscopic agent dynamics. The novelty in our approach is that the financial agents apply model predictive control (MPC) to approximate and solve the optimization of their utility function. Interestingly, the MPC approach gives a mathematical connection between the two opposing economic concepts of modeling financial agents to be rational or boundedly rational. Furthermore, this is to our knowledge the first kinetic portfolio model which considers a wealth and stock price distribution simultaneously. Due to the kinetic approach, we can study the wealth and price distribution on a mesoscopic level. The wealth distribution is characterized by a log-normal law. For the stock price distribution, we can either observe a log-normal behavior in the case of long-term investors or a power-law in the case of high-frequency trader. Furthermore, the stock return data exhibit a fat-tail, which is a well known characteristic of real financial data.