Investor Perceptions Research Articles

An Analysis of the Crowdfund Syndicates Sector in Thailand: Exploring the Influence of General and Specialized Human Capital on Fundraising Success for Lead Investors

Background and Aim: Equity crowdfunding platforms enhance startup fundraising but may widen information disparity, leaving investors' roles in crowdfunding campaigns understudied. This paper aims to investigate the impact of general and specialized human capital on the fundraising performance of a lead investor in Thailand. Materials and Methods: This study is quantitative research. The study analyses the social capital of Thai investors, focusing on 384 active lead investors and 154 final investors. An online questionnaire assessed the lead investor's perception of general human capital, specialized human capital, and fundraising performance using closed-ended response inquiries. A seven-point Likert scale was used to measure agreement. Multiple regression analysis evaluated research hypotheses using the enter method. Results: Based on the research findings, a statistically significant positive correlation exists between the fundraising success of lead investors and two independent factors, namely general human capital (GHC) and specialized human capital (SHC). The model demonstrates both statistical significance and explanatory power, as it can explain 70.40 percent of the total variation in the model. Conclusion: According to the findings of certain studies, there is a substantial and positive connection between the effectiveness of lead investor fundraising and general and specialist human capital. To improve the results of fundraising efforts and establish confidence, Thai lead investors should make the cultivation of social capital on investment platforms their top priority.

Nigerian professional investors' sense-making of the impact of shareholder activism on corporate accountability

This study investigates the perceptions of professional investors (PIs) on the impact of three groups of shareholder activists (i.e., reputable, sophisticated, or institutional) on corporate accountability in a weak institutional context and how this shapes the PIs’ investment recommendations. Relying on a sense-making theoretical perspective of the power and competence of shareholder activists obtained through semi-structured interviews with 27 Nigerian PIs, we reveal that the impact of shareholder activism occurs in three activism-accountability dimensions: dominant, insignificant, and emerging. Subsequently, we unpack factors that explain the power and influence of the dominant activism of reputable activists, the insignificant activism of sophisticated activists and the emerging activism of institutional activists. By advocating a contextual understanding of shareholder activism, this article sheds much-needed insights into the concept of ‘activism-accountability’ in a weak institutional environment.

Green Image and Incentives: Unraveling Their Moderating Impact on Green Innovations, Investor Perception and Financial Performance

Green Image and Incentives: Unraveling Their Moderating Impact on Green Innovations, Investor Perception and Financial Performance

Measuring Relative Worth of Antecedents of Investors’ Company and Market- Regulatory Linked Risk Perception in Equity Market: An RII Approach

Purpose: The focus of this study is to measure the relative worth of antecedents of perceived risk in equity market and contrast the same across socio economic characteristics. Theoretical framework: Risk perception is crucial for equity investors as it influences their investment decisions. In this study the risk perception of the retail investors about the antecedents of risk, relative worth wise, was tried to be tested through13 antecedents grouped under two dimensions i.e., Company and Market- Regulatory Linked Information based on age and income groups. Design/methodology/approach: The study used descriptive design. 204 retail investors were surveyed from Jorhat, India. The Relative Importance Index (RII) and Kruskal- Wallis test were used to measure and compare the antecedents. Findings: The study found that under Company-Linked Information, "Market share" and "Composition and fame etc., of Board of Directors of the companies" were the most and least influential antecedents. Secondly, "Further Public Offer" and "Trends in the Fluctuations in the price of Gold" were the most and least influential antecedents under Market-Regulatory Linked Information. Moreover, retail investors' risk perception significantly differed across three income groups under the Company -linked information. Research, practical and social implications: The equity market investors, data analyst and academicians may be benefited by depending on more objectively carved out relative importance of the antecedents based on the findings of this study. Originality/value: The value of the research lies in its endeavor to prioritize the antecedents that potentially impact the risk behaviour of investors, thereby facilitating informed decision-making.

A Study on Perception of Investors Investing in Life Insurance Policies in North Gujarat

Life is unpredictable and uncertain. There can be chance to unsound event. Life insurance provides financial assistance against if, unsound event with earning member and earning member of family death happen. Life insurance provides both benefit one is life cover and investment in form of saving. Various insurance related factors discussed in the study Such as gender, age, occupation, income level. We collect data from primary data and secondary data collection method. For that we conduct questioner survey by using Google form. We collect responds of 100 life insurance policy holders. The study includes life insurance policy holder of North Gujarat Region. Research is based on demographic factors and tested them with the help of statistical tools of correlation. For the analyses the data, we have presented by charts and used percentage method. LIC is most valuable brand in life insurance industry in India but now a days private players increase their market share by providing batter services. This study aims to measure the satisfaction levels of the investors towards the services provided by the LIC and Study about Perception of Investors Investing in Life Insurance Corporation.

Green Funds in a Gray Area


 
 
 Environmental, Social, and Governance (ESG) funds face tremendous skepticism regarding their impact relative to investor perceptions. In fact, several figures, including media commentators and asset management leaders, have sounded the alarm on ESG investing. They believe investors, especially retail investors, are being misled by funds’ names and largely unhelpful disclosures, and that some fund managers are exaggerating their ESG practices in the name of attracting investors’ money. The Securities and Exchange Commission (SEC) has documented evidence of misleading statements regarding ESG investing processes and has brought enforcement actions against companies for making false claims in their disclosures. In an effort to address the lack of standardization and clarity in the ESG fund industry, the SEC proposed two rules in May 2022 that would change the naming and disclosure requirements for ESG funds.
 To examine how ESG funds are naming themselves and disclosing key ESG information, this Note aggregates data collected from the twenty largest ESG mutual funds and exchange-traded funds (ETFs). Based on an analysis of this data—which simulates an investor’s experience attempting to identify which ESG funds best align with their objectives—this Note derives quantitative and qualitative takeaways. The main conclusion is that ESG fund names are often vague and misleading, and neither their names nor their accompanying disclosures describe the funds’ investment strategies in a manner retail investors can meaningfully understand and use to make fully informed investment decisions. This Note calls this phenomenon the “ESG fund labeling problem.”
 
 
 
 In addition to analyzing the ESG fund labeling problem and its impact on retail investors, this Note considers whether the SEC’s two proposed rules from May 2022 will be successful in abating the ESG fund labeling problem. Ultimately, this Note concludes that the proposed rules fall short of meeting investors’ needs in key areas and proposes modifications the SEC can employ to further resolve the ESG fund labeling problem and reduce investor confusion.
 
 
 
 
 

Share pledge and qualitative information disclosures: Evidence from the tone of management discussion and analysis

Qualitative information provides additional information beyond quantitative information and may be strategically manipulated to bias investors’ perceptions. This can cause information asymmetry and requires a thorough investigation of firms’ information disclosure decisions. This study examines how controlling shareholders participating in share pledging affect the tone of management discussion and analyses (MD&A) using data from China’s A-share listed companies from 2007 to 2017. It finds that share-pledging firms tend to disclose more positively in MD&A. This positive effect is more pronounced in firms with a higher risk of losing control. Further analyses show that the positive tone of MD&A in pledging firms helps increase the short-run stock price but worsens future performance. It implies that positively toned disclosures in the MD&A of share-pledging firms may be used to mislead investor perception. Overall, the findings in this study not only help expand the existing literature on qualitative information disclosure and share pledging, but also encourage more robust regulations on the qualitative information disclosure.

Pengaruh Keputusan Investasi, Keputusan Pendanaan dan Kebijakan Dividen terhadap Nilai Perusahaan Manufaktur Sub Sektor Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia Tahun 2019-2022

Purpose: Firm value is the investor's perception of the company associated with the stock price. This study aims to determine the effect of investment decisions, funding decisions, and dividend policies on firm value. Methodology/approach: The data analysis technique uses multiple linear regression analysis using SPSS. The population in this study are all manufacturing companies in the food and beverage sub-sector which are listed on the Indonesian stock exchange from 2019 to 2022, totaling 43 companies. The sampling technique in this study used purposive sampling. The sample in this study amounted to 11 companies that have been determined. Results/findings: The results showed that simultaneously the investment decision variables, funding decisions and dividend policy have an effect on firm value variables, while partially investment decisions have an effect on firm value, funding decisions have no effect on firm value, and dividend policy has an effect on firm value Limitations: The scopes in this study is to focus on the analysis of company value which is influenced by investment decisions, funding, and dividend policies Contribution: The contribution from the results of the research conducted shows that firm value is influenced by investment decisions and dividend policy in the research model used Novelty: The update in this research illustrates a theoretical study of company value analysis in food and beverage sub-sector manufacturing companies with quantitative analysis.

How economic uncertainty influences the performance of investor perceptions and behavior

In the presence of high uncertainty and asymmetric information, firms might opportunistically shift earnings from uncertain to more certain times. Thus, this paper examines how investor perceptions and risk-taking behavior fluctuate under high economic uncertainty and how earnings quality influences stock return synchronicity and analyst forecast accuracy during periods of high uncertainty. Using a large sample obtained from 24 countries worldwide over the period from 1997 to 2017, we find that investors take a bearish attitude and stocks are more synchronized during years with high economic uncertainty. Furthermore, we find a negative association between analyst forecast accuracy and economic uncertainty. Second, a low level of investor protection indicates a low level of market sentiment. Third, stocks become more synchronous and analyst forecasts are more accurate during periods of high investor sentiment and in the presence of higher levels of earnings quality. Fourth, higher stock return synchronicity implies greater analyst forecast accuracy. Overall, we show that all these effects are more intense during periods of high economic uncertainty.

A study of derivatives market (with reference to futures and options)

To find the gap between what potential the derivative market offers & how much investors are aware & willing to take benefit of the same. In the era of growing importance of savings & investment, Derivatives is a source of investment & risk management tool which is not explored to its full horizons & capabilities. My study on focuses on 2 major types of derivatives i.e. futures & options, there risk & return profiles & the investment motives & returns that investors have earned from their investment. It analyses the gap between the potential of derivatives market & how much are investors able to take the benefit of the same. The derivatives market, its functionality, practical approach & implementation is studied by considering 3 sectors - Fashion and Retail Industry, Financial Services and IT Industry & 3 industries in each of these 3 sectors. A primary data is also collected by collecting responses from investors via a Questionnaire. The questions in the Questionnaire were related to investors awareness, their risk appetite, their choice of derivative investment & returns earned by them in their investments. The primary & secondary data is then compared & based on this suggestions & findings of the study are given in this report. The result of factoral anova test shows that there is an interaction present between the no. of times an investor invests & the risk capacity possessed by him / her. The chi-square test shows that there is a relationship between the income & investment pattern of investors. So, it is identified from the study that there is a huge gap between what the derivative market has to offer, its potential and investor perceptions & choices in the market & investors awareness about this market.

How does the COVID-19 pandemic shape the relationship between Twitter sentiment and stock liquidity of US firms?

Using a new investor sentiment metric derived from Twitter, this paper examines how the pandemic's death rate influences the impact of investor sentiment on stock liquidity. Recent literature remains inconclusive regarding the effect of COVID-19 information and investor sentiment on financial markets. Using panel smooth transition regression (PSTR) for daily data on 338 listed firms in the S&P500 from January 2, 2020, to May 26, 2021, the findings reveal that the impact of Twitter sentiment on stock liquidity is nonlinear and changes over time and across firms in the function of the pandemic's death rate in the US. The results exhibit a threshold level of 4.32%, above which investor sentiment boosts stock liquidity. The speed of the transition from low to high pandemic death rate regime occurred abruptly rather than smoothly. This translates to severe changes in investor perception and demonstrates that investors are rapidly updating their beliefs during the COVID-19 outbreak.

IS DEMUTUALIZATION A PANACEA TO SPUR INVESTORS’ PERCEPTION?

This study considers demutualization of Pakistan Stock Exchange (PSX)and how it has influenced investors perception. The investors perception and response to demutualization is assessed under two heads namely: volume of trade as proxy for liquidity, andmarket priceas proxy for volatility. The study is layered into: country level and firm level. Pakistan used to have three stock exchanges namely: Karachi Stock Exchange, Lahore Stock Exchange and Islamabad Stock Exchange. Following passing of the Demutualization Act in the year 2012, these three stock exchanges merged to form a single stock exchange named as Pakistan Stock Exchange abbreviated as PSX. The investors perception as reflected in the number of trades is assessed against country’s gross domestic product to measure demutualization impact on investment climate that prevailed in the country during the period 2014 to 2018 which is two years before and two years after demutualization. The year 2016 is the year when the process of demutualization was given final shape and being transitory period is ignored for the study. The explanatory variables used for the study include: turnover ratio, market capitalization, value of trades as percentage of GDP, and the control variables include size and age of firms included in the study. The study has revealed thatDemutualization of PSX has had statistically significant impact on liquidity and volatility.

Does the Reporting of Critical Audit Matters Affect Nonprofessional Investors’ Perceptions of Auditor Credibility, Information Overload, Audit Quality, and Investment Risk?

ABSTRACTA new Public Company Accounting Oversight Board (PCAOB) standard requires the reporting of critical audit matters (CAMs) within the audit report. This change has lengthened the audit report but may provide investors with cues about auditor credibility and audit quality. Utilizing an experiment and 140 nonprofessional investors, we find evidence that the disclosure of a CAM improves perceived auditor credibility, but the disclosure also has the unintended consequence of increasing feelings of information overload. More importantly, the disclosure of a CAM has a significant, positive total effect on perceived audit quality. This effect, in turn, lowers investors’ perceptions of investment risk. These findings highlight the potential for CAMs to impact investor perceptions and, possibly, subsequent decision making.Data Availability: Data are available from the authors upon request.

The Effect of Corporate Governance, Resource and Development Intensity, Intellectual Capital and Managerial Ability on Firm Value With Political Relations As A Moderating Variable

Firm value is the investor's perception of the level of success of the company which is reflected in the stock price. The higher the value of the company, the greater the prosperity that will be received by the shareholders. This study aims to see the effect of corporate governance, Resource and Development intensity, intellectual capital and managerial ability on firm value with political relations as a moderating variable in construction companies listed on the Indonesia Stock Exchange for the 2018-2021 period which were selected based on purposive sampling, the sample used in this study, namely 17 construction companies. Data were analyzed using multiple linear regression and moderated regression analysis (MRA) which were processed using SPSS version 23. The results showed that there was no significant effect between RD intensity and managerial ability on firm value, while the results of corporate governance analysis and intellectual capital also had a significant effect on firm value. The moderation test states that political relations cannot strengthen the influence between corporate governance, RD intensity, intellectual capital and managerial ability on firm value.

Impact COVID-19 on Investor's Perception towards Systematic Investment Plan in Mutual Funds

Impact COVID-19 on Investor's Perception towards Systematic Investment Plan in Mutual Funds

Impact COVID-19 on Investor's Perception towards Systematic Investment Plan in Mutual Funds

Impact COVID-19 on Investor's Perception towards Systematic Investment Plan in Mutual Funds

Impact COVID-19 on Investor's Perception towards Systematic Investment Plan in Mutual Funds

Impact COVID-19 on Investor's Perception towards Systematic Investment Plan in Mutual Funds

Governmental Restrictions and Real Estate Investor Risk Perception.

We investigate the impact of governmental restrictions on the short-term risk perception, as proxied by the going-in cap rate, of investors in regional and neighborhood shopping centers. We use the COVID-19 pandemic as a natural experiment and proxy for the length and severity of COVID-19 restrictions with the political affiliation of state governors. Using a sample of 40 metropolitan statistical areas (MSAs) across 27 states over the period of 2018 to 2021, we find that for states with Republican governors, which proxy for shorter and fewer COVID-19 restrictions, investors in regional malls required a lower going-in cap rate in the pandemic period than for states with Democratic governors. This effect does not exist for neighborhood shopping centers, whose tenants were not as affected by COVID-19 restrictions. Robustness checks suggest that our findings can be explained with mask mandates as one type of governmental restrictions, and that COVID-19 related restrictions do not impact the long-term risk perception of retail real estate investors. We furthermore find that the political attitudes of an MSA have an impact on investor risk perception.

Determinan Firm Value pada Perusahaan Property dan Real Estate Tahun 2017-2021

Firm value is the investor's perception of the company. Firm value is very important because it reflects the company's performance which can affect investors' perceptions of the company. Companies that have high value will always improve their performance so that it becomes higher and makes potential investors invest as much as possible. Potential investors will be interested in investing in the company and will increase the share price. This study aims to examine and analyze the effect of profitability, leverage, firm size, debt policy and liquidity on firm value. The population in this study are property and real estate companies listed on the Indonesia Stock Exchange (IDX) in 2017-2021 with a total of 81 companies. Sampling using purposive sampling method and samples obtained as many as 15 companies. The sampling criteria are as follows: 1) property and real estate companies are listed on the IDX in 2017-2021; 2) property and real estate companies that publish complete financial reports for 2017-2021; 3) property and real estate companies whose financial reports use the rupiah currency; and 4) property and real estate companies that generate profits in 2017-2021. The data analysis technique uses multiple linear analysis. The results of this study indicate that profitability affects firm value. Leverage affects the value of the company. Firm size has an effect on firm value. Liquidity affects the value of the company. Meanwhile, debt policy has no effect on firm value.

How does investor attention affect energy firms' managerial opportunistic behavior? New evidence from China

AbstractThe energy sector plays a crucial role in facilitating the low‐carbon energy transition. However, in the absence of appropriate environmental regulation, managerial opportunistic behavior in energy firms can manipulate ethical investor perceptions and hinder the real transition process towards clean energy. Using Chinese listed energy firms as the research setting, this paper examines the impact of investor attention on energy firms' earnings management practices. In both clean and traditional energy firms, the results show a significant U‐shaped association between investor attention and earnings management, with the U‐shaped curve for clean energy firms being smoother. This U‐shaped relationship is more pronounced in energy firms with larger size and weaker external monitoring. Moreover, the mediating analysis shows that internal control quality transmits the impact of investor attention onto earnings management practices in the energy sector. Our key findings remain robust to a battery of robustness tests and endogeneity controls. Therefore, given the growing attention on the energy sector, this study extends the existing literature on energy firms' managerial opportunistic behavior by analyzing the nonlinear effect for investor attention and provides practical implications for curbing energy firms' managerial opportunistic activities and guiding managerial attention towards making real sustainable investments, thereby promoting clean energy transition and sustainable development.