Stock Market Investors Research Articles

Deep Learning-Based Stock Market Prediction and Investment Model for Financial Management

This study explores the potential application of deep learning techniques in stock market prediction and investment decision-making. The authors used multi-temporary stock data (MTS) for effective multi-scale feature extraction in reverse cross attention (RCA), combined with improved whale optimization algorithm (IWOA) to select the optimal parameters for the bidirectional long short-term memory network (BiLSTM) and constructed an innovative RCA-BiLSTM stock intelligent trend prediction model. At the same time, a complete RCA-BiLSTM-DQN stock intelligent prediction and investment model was established by combining the deep Q network (DQN) investment strategy. The research results indicate that the model has excellent sequence modeling and decision learning capabilities, which can capture the nonlinear characteristics and complex correlations of the market and provide more accurate prediction results. It can continuously improve the robustness and stability of the model through adaptive learning and automatic optimization.

Herding behaviour in the Indian stock market: An empirical study

The rapid growth of the Indian stock market in recent decades has prompted much study on investing, focusing on understanding and analysing investors' tactics for investment and trading. Over the years, researchers have cited and conducted in-depth investigations into various psychological biases. Herding bias is extensively studied to understand how investors participate in investment and trading in the Indian stock market. The current study on herding provides an investigation into the existence of herd activity in the share market of India. The study attempts to identify herd activity during positive, negative, extreme positive, and extreme negative market conditions, as well as during structural breakpoints and trade volumes that are low as well as high. The researchers have used the modified CSAD (Cross Sectional Absolute Deviation) model to enhance its validity. The findings reveal the rationality of investors during the different market states. However, herding behaviour was evidenced during certain periods at the structural breakpoint. This implies that during positive as well as negative market conditions, herding behaviour is absent, except during certain structural breakpoints and high trading volumes.

The Role of Financial Development in Economic Growth using WPM Method

Financial development is possible investments creating information about and allocation of capital, monitoring of companies and corporate administration, commerce, diversification and risk management, accumulation and accumulation of savings, exchange of goods and services in activities like facilitation includes improvements. provided by financial institutions economic theory, at best and efficient financing institutions-banks, stock markets and bond markets-which capital it’s for high production applications paying is for economic growth beneficial. development of developing Asia strong to retain and efficient financial systems particularly important are because the performance of the investment as a driver of the region's development reduces the amount of investment. Since the early 1990s the region's financial systems are deep and diversified data indicate. 125 countries more formal econometrics on panel data quantitative analysis, financial development significant in development positive effect confirms having, especially in developing countries. of financial development in the development of the region impact than elsewhere significantly different thatno, for the asian financial crisis since then its influence has weakened the results also indicate that financial intermediaries, these teachers are bankers finance in the weakness of the sector effect of liberalization Is it a temporary effect will check that, that is, in the following years only this is observed. beginning of liberalization. this is not the case. of the banking sector weaknesses will only become apparent over time. however, in developing countries financial Liberalization Policy as an important part of the reform has Among some researchers, it is about virtues reflects overall confidence financial liberalization is that of the banking sector lead to weakness significant factor is, also of economics status even after controlling that there is this effect they found, the first one below income in the area earning funds summarize the implications the first one below review the area we do. income, cost and Savings, investment and wealth accumulation financial statements of we briefly reviewed do. The second division financial institutions orrole of intermediaries deals with The third section income, interest and money conventional theories about funding for real development between growth and development for important contacts enough attention that he did not pay some theoretical adaptations proposes and argues. The purpose of this paper is tofield-projectseveral in conjunction with the detain determinations and measurement perceived at a distance water using data for productivity mapping (WPM)methods and protocols is to create. Stock Market Investments, Real Estate Investments, Cryptocurrency Investments, Peer-to-Peer Lending and Startups and Venture Capital. Risk Management, Return on Investment (ROI), Portfolio Diversification and Costs and Fees. the Ranking of Financial development. Real Estate Investments is got the first rank whereas is the Cryptocurrency Investments the Lowest rank.

Impact of Fınancıal Knowledge and Investor’s Personalıty Traıts on Investment Intentıon: Role of Attıtude and Fınancıal Self Effıcacy

In recent years, there has been an upsurge in stock market investment intentions. Researchers are therefore becoming more and more eager to look into the factors that influence investors in general, and individual investors in particular to engage in stock market activities. Under the assumption of the theory of planned behavior this study looked at investor's intentions to invest in the stock market. The study primarily focusses on the impact of financial knowledge, personality traits, subjective norms, attitude, and financial selfefficacy on the stock market investment intentions of individual investors. To gather information from individual investors, the study used a cross-sectional research approach, on the population sample of 298 individuals. The data is collected from the Pakistani investors, from three big cities, i.e. Islamabad, Lahore and Karachi, also considered as business centers of the country. The respondents include both the salaried workers and business owners. The findings indicate that attitude and financial self-efficacy were significant mediators for investors’ investment decisions. The results imply that people with a favorable outlook on investing in the stock market, risk-taking and innovative personalities, and financial expertise are more likely make investments. Those who have a mindset towards investing and financial selfefficacy also have more intentions.

Volatility contagion between cryptocurrencies, gold and stock markets pre-and-during COVID-19: evidence using DCC-GARCH and cascade-correlation network

The rapid rise of Bitcoin and its increasing global adoption has raised concerns about its impact on traditional markets, particularly in periods of economic turmoil and uncertainty such as the COVID-19 pandemic. This study examines the extent of the volatility contagion from the Bitcoin market to traditional markets, focusing on gold and six major stock markets (Japan, USA, UK, China, Germany, and France) using daily data from January 2, 2011, to June 2, 2022, with 2958 daily observations. We employ DCC-GARCH, wavelet coherence, and cascade-correlation network models to analyze the relationship between Bitcoin and those markets. Our results indicate long-term volatility contagion between Bitcoin and gold and short-term contagion during periods of market turmoil and uncertainty. We also find evidence of long-term contagion between Bitcoin and the six stock markets, with short-term contagion observed in Chinese and Japanese markets during COVID-19. These results suggest a risk of uncontrollable threats from Bitcoin volatility and highlight the need for measures to prevent infection transmission to local stock markets. Hedge funds, mutual funds, and individual and institutional investors can benefit from using our findings in their risk management strategies. Our research confirms the utility of the cascade-correlation network model as an innovative method to investigate intermarket contagion across diverse conditions. It holds significant implications for stock market investors and policymakers, providing evidence for potentially using cryptocurrencies for hedging, for diversification, or as a safe haven.

Extreme Connectedness Across Chinese Stock and Commodity Futures Markets

This study examines the price spillovers and connectedness among stock markets, the Shanghai Stock Exchange Composite (SSEC) index, Hang Seng index, Shenzhen Stock Exchange (SZSE) index, commodity futures markets, Aluminum (AL), Gold (AU), Copper (CU), Zinc, Steel Rebar, and Natural Rubber in bearish and bullish market situations. We use the quantile connectedness approach of Ando et al. (2022) to calculate hedge coverage ratios, optimal portfolio weights, and hedge coverage effectiveness. Our empirical analysis yields several important results. First, there is no difference in the results of the TVP-VAR-DY and TVP-VAR models in relation to the magnitude of return transmission during the sample period. Second, CU is the main transmitter and AU is the main receiver of shocks from the network. Third, under the QVAR method estimations, the CU (AU) is the major (minor) contributors to the network during the normal, bearish, and bullish market statuses. Fourth, the results of the hedge ratio strategy confirm that CU and AU are respectively the most and the least expensive assets for a long-term investment in the Chinese stock market in different market conditions.

Bidirectional Risk Spillovers between Chinese and Asian Stock Markets: A Dynamic Copula-EVT-CoVaR Approach

This study aims to investigate bidirectional risk spillovers between the Chinese and other Asian stock markets. To achieve this, we construct a dynamic Copula-EVT-CoVaR model based on 11 Asian stock indexes from 1 January 2007 to 31 December 2021. The findings show that, firstly, synchronicity exists between the Chinese stock market and other Asian stock markets, creating conditions for risk contagion. Secondly, the Chinese stock market exhibits a strong risk spillover to other Asian stock markets with time-varying and heterogeneous characteristics. Additionally, the risk spillover displays an asymmetry, indicating that the intensity of risk spillover from other Asian stock markets to the Chinese is weaker than that from the Chinese to other Asian stock markets. Finally, the Chinese stock market generated significant extreme risk spillovers to other Asian stock markets during the 2007–2009 global financial crisis, the European debt crisis, the 2015–2016 Chinese stock market crash, and the China–US trade war. However, during the COVID-19 pandemic, the risk spillover intensity of the Chinese stock market was weaker, and it acted as the recipient of risk from other Asian stock markets. The originality of this study is reflected in proposing a novel dynamic copula-EVT-CoVaR model and incorporating multiple crises into an analytical framework to examine bidirectional risk spillover effects. These findings can help Asian countries (regions) adopt effective supervision to deal with cross-border risk spillovers and assist Asian stock market investors in optimizing portfolio strategies.

Evaluation of Macroeconomic Variables in the Indian Stock Market Using TOPSIS Method

Asia's largest stock market, Indian stock market holds a pivotal position in the country's economy. Operating primarily through it is deeply influenced by government policies, global economic trends, corporate performance, and investor sentiment. These factors collectively shape the dynamics of the Indian economy as reflected in the market. Despite periodic fluctuations, the market has witnessed significant growth over the years, attracting both domestic and international investors. It offers diverse investment opportunities across various sectors such as technology, finance, pharmaceuticals, and manufacturing. Regulatory bodies like maintaining transparency and fairness in market procedures. the Indian stock market, conducting research holds significant importance. It serves as the cornerstone for making well-informed decisions, providing insights into market trends, company performance, and economic indicators. Thorough research empowers investors to identify profitable opportunities, mitigate risks, and enhance the long-term growth potential of their portfolios. Moreover, it facilitates understanding and compliance with regulatory changes and market dynamics, enabling investors to stay ahead of the curve. Essentially, research empowers investors in the Indian stock market, instilling confidence, minimizing risks, and maximizing opportunities. The TOPSIS ranking system, augmented with weighted averages and ambiguity comparisons, is commonly utilized. One approach involves addressing uncertainties to diminish ambiguity and adjusting both the weight and character of responses simultaneously. In TOPSIS, multiple responses are employed to adopt a holistic global perspective Mutual Funds, Exchange-Traded Funds (ETFs), Real Estate Investment Trusts (REITs), Gold and Precious Metals, Direct Equity Investments, Derivatives, Fixed Income Instruments, Portfolio Management Services (PMS) and Cryptocurrencies. Market Indices, Risk Management and Investor Sentiment. the Ranking of the Indian Stock Market. Direct Equity Investments got the first rank whereas the Real Estate Investment Trusts (REITs) have the Lowest rank.

Does religiosity affect stock investors’ herding behaviour? Global evidence

We investigate if religiosity promotes herding among stock market investors. In a global sample of 21 markets over the period 2006–2018, increasing religiosity fosters herding only when the absolute religiosity level is relatively high. At low levels, an increase in religiosity has the opposite effect, promoting anti-herding. Our finding that changes in religiosity, depending on its level (high versus low), exert opposing effects on herding helps to understand contradictory findings in prior literature. Religiosity further induces more herding when economic freedom is low and the state is either impotent or corrupt, and promotes anti-herding when institutional quality is high.

The impact of dividend payout policies on real estate market diversification

AbstractAn asymmetric DCC – GJR – GARCH model is applied to the Turkish and US REIT markets in order to estimate the time‐varying correlations between the REIT and stock markets. Using these estimated correlations, we investigate the impact of dividend payouts on the diversification potential of REITs for stock market investors. Our choice of the Turkish REIT market is based on its unique REIT dividend policy, while US data provide a benchmark for comparison. This study has a number of motivations and contributions that make it a worthwhile undertaking. First, we document that REIT dividend policy is related to the correlation between REIT and stock markets. Dividend paying REITs have lower correlations with stock markets, which makes the REIT market a viable portfolio diversifier. Second, we confirm that REITs and stock prices cointegrated more closely due to the 2008 global financial crisis. We additionally document that a similar effect was also present in the correlation during the global Covid‐19 pandemic crisis. It appears that REIT and stock markets become more correlated during times of financial turmoil and diversification opportunities are diminished. Finally, we document that there is a long‐term trend in the time‐varying correlations between REIT and stock markets. Türkiye has been experiencing a negative trend in this regard, while the US has been experiencing a positive trend.

Impact of Psychosocial Factors on Sustainability of Stock Investors’ Inclination: A Case of the South Pacific Stock Market

Previous research has documented that psycho-cognitive resources and socioeconomic status have significant influences on investment behavior in financial assets. Drawing from the positive psychosocial perspective, I hypothesized that positive enterprising personality mediates the influence of individual characteristics on investment behavior. I tested this hypothesis in the Structural Equation Modeling (SEM) framework using a purposive sample of potential stock investors in Fiji. The theoretical framework and analytical procedures, I introduce here, can also be used to discover additional factors influencing investment inclination and then estimate the predictors of stock market investments in other developing countries with similar socioeconomic contexts, for example, Sri Lanka. The results revealed that four latent factors (Intuition, Education and knowledge, Sociocultural norms, and Enterprising personality) are distinct dimensions of investment inclination together with the maturity factor (Age) towards stock investments. The findings could broaden our understanding about the direct and indirect impact of psychosocial characteristics on stock market participation through positive, personal resources such as an enterprising personality. The findings will be useful for financial service providers and regulators in designing educational programs for different levels of maturity, knowledge, and education, to enhance enterprising personality qualities amongst people generally, and inculcate positive attitudes towards stock investments in the young through high school curricula and mass-awareness programs.

The impact of oil and global markets on Saudi stock market predictability: A machine learning approach

This study investigates the predictability power of oil prices and six international stock markets namely, China, France, UK, Germany, Japan, and the USA, on the Saudi stock market using five Machine Learning (ML) techniques and the Generalized Method of Moments (GMM). Our analysis reveals that prior to the 2006 collapse, oil exerted the least influence on the Saudi market, while the UK and Japan were the most influential stock markets. However, after the collapse, oil became the most influential factor, highlighting the strong dependence of Saudi Arabia's economic structure on oil production. This finding is particularly noteworthy given Saudi Arabia's efforts to reduce its reliance on oil through Vision 2030. We further demonstrate that China's influence on the Saudi market increased significantly after the 2006 collapse, surpassing that of the UK. This is attributable to the substantial trade between China, Japan, and Saudi Arabia, as well as the rise in Saudi foreign direct investment in China, and the decline in such investment in the UK post-collapse. Our results carry important implications for stock market investors and policymakers alike. We suggest that policymakers in Saudi Arabia should continue to diversify their economy away from oil and strengthen economic ties with emerging markets, particularly China, to reduce their vulnerability to oil price fluctuations and ensure sustainable economic growth.

A STUDY ON IMPACT OF GLOBAL ECONOMIC CRISIS ON THE INDIAN ECONOMY: CASE STUDY

This paper explores the complex relationships between international financial crises and the ensuing changes in Indias financial system. It attempts to offer thorough insights into the ways that times of worldwide economic unrest affect the Indian financial market, impacting its composition, dynamics, and general resilience. This paper examines the complex effects of global economic downturns on Indias financial ecosystem using empirical data and in-depth analysis. It looks into the relationships between these crises and changes in important metrics such as currency exchange rates, stock market indices, investment trends, and government reactions. This article also examines the adaptable strategies the Indian financial sector used to get through these trying times. Through an analysis of past examples and current situations, it provides insightful viewpoints on the tactics used by investors, market players, and policymakers to reduce risks and seize opportunities in the face of worldwide economic volatility. In the end, this article aims to advance a nuanced understanding of the complex interactions between global economic crises and Indias financial environment by illuminating the ramifications, difficulties, and possible solutions for bolstering the Indian financial systems resilience in a globally interconnected economy

Study on Financial Ratio Analysis Used by Investors in Stock Market and Its Impact

Objective: To analyse the demographic and investment patterns of the stock market investors, To understand which financial ratios impacted the investor returns.
 
 Method: The present study used descriptive statistics for understanding the investors. This was followed by applying the discriminant analysis using the tool Advanced Excel. Prepared the structured questionnaire and collected data from the stock market investors. Variables for the study are identified by reviewing the existing the literature. This study followed the descriptive methodology steps for findings and conclusion. Followed steps are literature review, questionnaire preparation, data collection, data cleaning, processing, analyzing them, and conclusion. This study limited to Telangana, India region.
 
 Results and Conclusion:The stock market has investors from all categories of people. Most of them are aged between 20 and 40. We see that having more disposable income is increasing the chances of investing in stock market. As less income people struggle to satisfy their basic needs and have less disposable income. It is observed that most of investors are investing in multiple stocks and not in one bucket. They are interested in diversifying the risks. While investing they are spending time to gather information from all resources. At the time of investment more emphasis is on Growth of company and EPS. Most of the investors not looking at the financial ratios before making decision of investment in stock market. Hence, there is further chance of study to understand why some of the investors not looking at the financial ratios and why taking decision based on different parameters and how they are getting benefited.
 
 Implications of research:Earlier research papers, and studies considered the technical ratio analysis to get the maximum profits, and did the sentiment analysis of the investors, but studies did not consider the opinion of the investors in terms of selection of ratios used for making the investment and get the maximum returns and which financial ratios actually impacted the returns of the investors in the stock market. So, it is the gap of the study.
 
 Originality/value:8%

Heuristic Biases and Investment Decision-making of Stock Market Investors: A Review Paper

This article builds a theoretical and research framework by identifying numerous behavioural biases in investing decision-making through a survey of research publications in the field of behavioural finance. It outlines some of the early research that helped establish behavioural finance as a field of study and shows how it has developed through time. The purpose of the article is to carry a systematic review of the literature on heuristic biases, namely overconfidence, representativeness, anchoring, availability and gambler’s fallacy influencing stock market investment decisions, identifying the major gaps in the existing studies on behavioural biases. It also aims to raise specific questions for future research. In the present study, systematic literature review (SLR) technique has been employed. By looking at the research’s year of publication, the journal of publishing, the country of study, the type of study and the statistical methods employed, one can determine the relevance of the study. On the basis of keyword searches for ‘behavioural finance’ in various published journals, conference proceedings, working papers and some other published publications, the research papers are analysed. For the purpose of creating this article, research papers from the earliest studies (1970) to the most recent publications (2022) have been gathered over a period of years. The study also highlights some of the most recent research carried out in this area. The current study is based on 131 selected research papers that were published in reputable journals between 1970 and 2022. A significant portion of the body of literature on behavioural biases highlights the dearth of this type of study in emerging nations; increase in the number of studies after behavioural finance was applied to investment decision-making, the predominance of empirical research; the widespread use of regression analysis; the prevalence of studies on overconfidence bias and the dearth of studies on availability bias and gamblers fallacy. To the best of the authors’ knowledge, the article is a pioneering work in the field of behavioural finance to employ SLR method for a considerable span of time (1970–2022) and to evaluate all the heuristic biases involved in investment decision-making. The present research study is an integration of SLR and bibliometric analysis. The publications’ patterns have been revealed, and the relationships between different types of literature have shed information on the direction that further research should go in.

Turning Students into Stock Market Investors: The Role of Civil Society and Public Schools in Swedish Financialization, c. 1985–2010

This article brings agency to discussions on financialization and financial education in Sweden by zooming in on two barely examined actors and arenas: civil society and public schools, respectively. The civil society organization Aktiespararna (Swedish Shareholders’ Association, founded in 1966) attempted to access and impact school education starting with its launch of youth efforts in the 1980s. Aktiespararna was joined in these efforts by Unga Aktiesparare (Swedish Young Shareholders’ Association), founded in 1990. This study describes the organizational strategies—tools, techniques, and discursive approaches—to reach Swedish upper-secondary school students. The result shows a crucial transition on how young Swedes were expected to relate to investing in stocks: from a special interest to pursue as either side activity or profession, to an inevitable part of everyday consumer life. The Swedish example is especially illuminating because it is general in its overall development from welfare state to market orientation. Yet, it emerges as distinctive in its pace and character. Apart from the apparent brisk, straightforward march from social-democratic hegemony, and one of the most regulated national economies in the mid-1900s, to a highly marketized and financialized society in the 2000s, Sweden holds a sociocultural history of strong popular movements and civil society associations. The article demonstrates important links between this aspect of collective engagement for individual progress and the financialization process.

Stock market openness and audit fees: evidence from the inclusion of China A-shares in the MSCI emerging markets index

This study examines how China’s stock market openness affects audit fees. In May 2018, Morgan Stanley Capital International (MSCI) announced the first wave of listing of large-cap China A-shares in the MSCI Emerging Markets (EM) Index, which marked China’s grand entrance into the global investment benchmark, and sharply expanded its stock market investor base. Using a difference-in-differences approach, we find that audit fees for constituent stocks decrease after the index inclusion. Further analyses suggest that foreign investors can reduce the risk of expropriation by controlling shareholders and mitigate agency conflicts. Our results also show that the effect is more pronounced for firms with weaker internal controls, lower levels of domestic institutional ownership, and those located in less developed markets. Our findings highlight the monitoring effect of stock market openness in improving corporate governance and advance our understanding of the key drivers of audit fees in emerging markets.

Analysing Risk & Return Profiles: A Comparative Study of the Indonesian Stock Market against International Benchmarks

The Indonesian stock market, also known as IDX, has emerged as a prominent player in the financial landscape of Southeast Asia. It has attracted the interest of investors who regard it as a potential source of massive returns. Nevertheless, empirical research has consistently demonstrated that developing nations’ stock markets tend to exhibit a notable degree of volatility. This volatility is well recognised for its propensity to amplify risk levels for domestic investors, potentially leading to a decrease in the demand for stock market investments. The observed phenomenon in Indonesia reveals a very low degree of stock market engagement when compared to benchmark nations. This suggests that the high volatility in the market may be a contributing factor. Understanding the risk-return characteristics of the IDX in comparison to recognised benchmark indexes is crucial for making educated investment decisions. This study will conduct a comparative analysis of the risk-return attributes of the IDX in comparison to six well recognised benchmark indexes, specifically the S&P 500 Index, the Straits Times Index, the FTSE 100 Index, the Shanghai Stock Exchange Composite, the BSE Sensex, and the BOVESPA Index. The study employs several risk and return measures, such as standard deviation, coefficient of variation, and the Sharpe ratio, to assess the relative performance of the IDX. The objective of this study is to evaluate the comparative appeal of the Indonesian stock market when compared to international benchmarks, with a specific focus on risk and return. The aim is to determine the optimal level of stock market involvement and the inclination towards risk aversion or risk-seeking behaviour among retail investors in Indonesia.

Empirical Analysis of the Predicting Future Trend in Nasdaq Using ARIMA Model

The paper delves into a detailed empirical analysis leveraging the ARIMA model, with data gleaned from the weekly return trends of the Nasdaq Index. Using diagnostic tools such as ACF, PACF, and the AIC information criteria, the study zeroes in on the optimal lag period for the model. Subsequently, this refined model is employed to forecast potential trajectories for the Nasdaq Index's weekly returns. Through a thorough examination of analytical outcomes, especially AIC values, the study gauges the margin of prediction errors, culminating in the selection of the most proficient forecasting model: ARIMA (2,0,2). Importantly, these analytical insights serve as a valuable compass for investors aiming to capitalize on lucrative opportunities or mitigate potential risks within the Nasdaq stock exchange. Furthermore, it underscores the importance of empirical data analysis in guiding informed decision-making, ensuring optimal returns in the volatile Nasdaq market landscape. This work acts as a beacon for those navigating the intricate nuances of stock market investments.

Generation Z Investment Decisions Influenced by Financial Behavior: Mediated by Financial Literacy

Generation Z, born between the mid-1990s and early 2010s, has become a desirable demographic for the financial industry due to their unique upbringing in the digital age. This generation is proficient with technology, cellphones, and online platforms. Generation Z is well-suited for digital banking services, online investing platforms, and other fintech advances. This study investigates the impact of financial literacy on investment decisions, using financial behaviour as a mediator, based on the Theory of Planned Behaviour. Employing a quantitative methodology, a study was conducted on a group of 110 Generation Z individuals that engage in stock market investments in Malang City. Through the application of Structural Equation Modelling (SEM) research, it is demonstrated that financial literacy exerts an impact on both financial behaviour and investment decisions. Furthermore, financial behaviour acts as a mediator in the relationship between financial literacy and investment decisions. Research findings suggest that Generation Z in Malang City should enhance their ability to forecast investment risks in order to make more informed investment choices. Generation Z is anticipated to consistently seek knowledge pertaining to strong investment portfolios from fellow investors in order to enhance their investment choices.