Does Religion Affect Stock Markets and Institutional Investor Behavior?

2011 ◽  
Author(s):  
Joshua Golombik ◽  
Alok Kumar ◽  
Jerry T. Parwada
Keyword(s):  
Stock Markets ◽  
Institutional Investor ◽  
Investor Behavior

Extreme Rainfall and Institutional Investor Behavior

2021 ◽  
Author(s):  
Andrew P. Marshall ◽  
Sandeep Rao ◽  
Partha P. Roy ◽  
Chandra Thapa
Keyword(s):  
Extreme Rainfall ◽  
Institutional Investor ◽  
Investor Behavior

Behavior of fund managers in Malaysian investment management industry

2017 ◽  
Vol 9 (3) ◽  
pp. 205-239 ◽  
Author(s):  
Zamri Ahmad ◽  
Haslindar Ibrahim ◽  
Jasman Tuyon
Keyword(s):  
Bounded Rationality ◽  
Behavioral Finance ◽  
Asset Management ◽  
Institutional Investors ◽  
Institutional Investor ◽  
Current Paper ◽  
Investor Behavior ◽  
Investment Management ◽  
Content Type ◽  
Fund Managers

PurposeThis paper aims to explore the relevance of bounded rationality to the practice of institutional investors in Malaysia. Understanding institutional investor behavior is important, as it can determine the asset prices and consequently the market behavior. Design/methodology/approachA set of questionnaires is used to solicit information regarding the understanding and practical application of behavioral finance theories and strategies among fund managers in the Malaysian investment management practice. In the process, bounded rational theory is aimed to be validated. Fund managers’ possible bounded rational behavior is assessed with reference to their investment management approaches and strategies right from individual beliefs and acquisition of information, as well as investment management and strategies used. FindingsThe findings lend support to the notion that institutional investors too, being normal human beings, are expected to think and behave in a boundedly rational manner as postulated in bounded rational theory. The sources of bounded rationality are individual, institutional and social forces. Thus, portfolio trading and investment management strategies are exposed to wide varieties of behavioral risks. Despite the notions that behavioral risks are real and the impact on fund performance could be pervasive, fund managers’ self-awareness regarding control and institutional readiness to govern behavioral risks in investment practices is still low. Research limitations/implicationsEmpirical evidence drawn in the current paper is subjected to small sample size and specific focus on Malaysian context. Despite this limitation, the sample is statistically sufficient and provides a fair representation, as well as quality opinions, of fund manager’s investment management behavior in Malaysia. This research provides valuable implications to practitioners (fund managers) and regulators (investment management and capital market policymakers). In practice, the current study draws some practical ideas, especially for buy-side institutional investors, on the source and impact of behavioral biases on fund management practices and performance. For regulators, this research highlighted the needs and possible ways to regulate these behavioral risks. Originality/valueThe current paper provides new insights on the theory and practice of the institutional investor. In theory, this research provides evidence of bounded rationality of institutional investor behavior, practicing in the asset management industry in the emerging markets of Malaysia. This evidence lends support to the validity of the bounded rationality theory in explaining institutional investor behavior. In practice, thisresearch provides new insights on the relevance of behavioral finance perspectives and strategies in the asset management industry practice and policy.

scholarly journals Volatility of Islamic Stock Markets and Developed Stock Markets of G6 Countries

2019 ◽  
Vol 2 (1) ◽  
pp. 1-15
Author(s):  
Muhammad Mansoor ◽  
Hina Ismail ◽  
Shahzad Akhtar ◽  
Haroon Hussain
Keyword(s):  
Decision Making ◽  
Stock Markets ◽  
Equity Markets ◽  
Institutional Investor ◽  
Equity Market ◽  
Market Volatility ◽  
Stock Market Volatility ◽  
Building Stock ◽  
Developed Stock Markets ◽  
Stock Portfolio

The objective of this to measure and compare Volatility of Islamic stock markets with equity markets of developed(G6) countries by taking daily values for period 2000-2016. The technique of Augmented fuller test (ADF), Heteroscedasticity test, ARCH (1,0), GARCH (1,1), TARCH and E-GARCH are applied. The results show Islamic stock markets shows positive returns as compare to previous day return but the Developed equity markets (G6) shows negative returns as compare to previous day return expect span and Poland equity market. The study explored that in all the stock markets the previous day volatility transfers in the next day volatility and there are many other factors affect the stock market volatility. The study is helpful in building stock portfolio for individual or institutional investor and for policy maker in decision making.

scholarly journals Article Herding Behaviour: Empirical Analysis of Pakistan, China, USA Stock Market

2020 ◽  
Vol 2 (2) ◽  
pp. 1-1
Author(s):  
Syed Ali Arslan ◽  
Rukhsana Bibi ◽  
Attiya Yasmin Javid
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Jel Classification ◽  
Investor Behavior ◽  
Geographical Distance ◽  
Chinese Stock Market ◽  
Absolute Deviation ◽  
Cross Sectional ◽  
Stock Investment ◽  
The Usa

The present study investigates market-wide herding of the stock market industry indices of Pakistan, China, and the USA, and cross-border herding of Pakistan stock market with the Chinese stock market and USA stock market. With Cross-Sectional-Absolute-Deviation, this study checks whether geographical distance matters in influencing the stock markets or not and if the USA is it's major influential and cannot be ignored. Market-wide herding in Pakistan is found only during 2004 and 2008, and across border herding for Pakistan is only found from the USA, which supports the asset pricing model and market efficiency hypotheses. Pakistan market does not herd around China- this negates that geographical distance matters and influences in determining investor behavior in stock markets. It is also revealed that the Pakistan stock market does not observe as much herding behavior in stock investment as other markets (such as the USA and China), so it can be said that the Pakistan Stock market is efficiently operating in the context of herding. JEL Classification: G02, G11, G14, G1

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