The Impact of Broker Geography on Retail Investor Behavior

2021 ◽  
Author(s):  
Daniel Bradley ◽  
William Christopher Gerken ◽  
Jared Williams
Keyword(s):  
Investor Behavior ◽  
Retail Investor ◽  
The Impact

Retail Investor Behavior, Cryptocurrencies, and Financial Market Innovation – Insights from the 5th European Retail Investment Conference (ERIC)

2020 ◽  
Vol 53 (2) ◽  
pp. 273-283
Author(s):  
Hans-Peter Burghof ◽  
Achim Fecker ◽  
Patrick Jaquart ◽  
Benedikt Notheisen
Keyword(s):  
Decision Making ◽  
Financial Market ◽  
Market Microstructure ◽  
Investor Behavior ◽  
Theoretical Research ◽  
Retail Investors ◽  
Retail Investor ◽  
Fundamental Value ◽  
Impact Of Technology ◽  
The Impact

Abstract The 5th European Retail Investment Conference was hosted at Börse Stuttgart, Germany, from April 10th to 12th 2019. The conference chairs invited academics and practitioners to participate and discuss empirical and theoretical research focusing on retail investor products and services, the impact of technology on retail investors, investors’ decision-making, investor protection schemes, and market microstructure. Albert Menkveld, Professor of Finance at Vrije Universiteit Amsterdam and Fellow at the Tinbergen Institute, held the keynote about the fundamental value of bitcoin.

Background Noise? TV Advertising Affects Real-Time Investor Behavior

2021 ◽  
Author(s):  
Jūra Liaukonytė ◽  
Alminas Žaldokas
Keyword(s):  
Real Time ◽  
Trading Volume ◽  
Data Gathering ◽  
Financial Information ◽  
Investor Behavior ◽  
Tv Advertising ◽  
Hourly Data ◽  
National Advertising ◽  
Retail Investor ◽  
Retail Trading

Using minute-by-minute TV advertising data covering some 300 firms, 327,000 ads, and $20 billion in ad spending, we study the real-time effects of TV advertising on investors’ searches for online financial information and subsequent trading activity. Our identification strategy exploits the fact that viewers in different U.S. time zones are exposed to the same programming and national advertising at different times, allowing us to control for contemporaneous confounding events. We find that an average TV ad leads to a 3% increase in EDGAR (Electronic Data Gathering, Analysis, and Retrieval) system queries and an 8% increase in Google searches for financial information within 15 minutes of the airing of that ad. These searches translate into larger trading volume on the advertiser’s stock, driven primarily by retail investors. The findings on retail investor ad-induced trading are corroborated with hourly data from Robinhood, a popular retail trading platform. We also show that ads induce searches and trading of companies other than the advertiser, including of close rivals. Altogether, our findings suggest that advertising originally intended for consumers has a nonnegligible effect on financial markets. This paper was accepted by Karl Diether, finance.

scholarly journals Faktor-Faktor Yang Dipertimbangkan Investor Dalam Melakukan Investasi

2011 ◽  
Vol 4 (3) ◽  
Author(s):  
Linda Ariany Mahastanti
Keyword(s):  
Educational Level ◽  
Investment Decision ◽  
Investment Decisions ◽  
Demographic Variables ◽  
Investor Behavior ◽  
Primary Data ◽  
High Educational Level ◽  
Behavioral Variables ◽  
Retail Investor ◽  
Economic Perspectives

Investor has many options in an investment with the current number of investment instruments. Previous studies of retail investor behavior have examined motivation from economic perspectives or studied relationships between economic, behavioral and demographic variables. Examination of the various utility-maximization and behavioral variables underlying individual investor behavior provides a more comprehensive understanding of the investment decision process. This research will examine the seven factors that considered investors' decisions to invest, and investor behavior in taking the decision to invest. The data used are primary data that obtained by sending questionnaires through via email at Danareksa investors domiciled in Salatiga and Semarang. The analysis method used is tabulation frequencies and cross tabulation (Crosstab). Based on the results of the research, it is known that the factors that considered investor' decisions is Neutral Information and Accounting Information factor. For the result of demographic aspects effect research against investment decision is investor who are aged 25-29 and 50-54 years which is considered all of the factors. While for sex, female consider many factors than male. For educational level with high educational level makes the investor pay attention to the factors that associated with investment decisions, and investors who invest for 1-3 years old considering many factors before making investment decisions.

scholarly journals Global development of innovative financial services. Does family economic socialization influence investor behavior in real estate crowdfunding?

2021 ◽  
Vol 129 ◽  
pp. 02010
Author(s):  
Renata Legenzova ◽  
Gintarė Leckė
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Bounded Rationality ◽  
Financial Services ◽  
Family Members ◽  
Investor Behavior ◽  
Equation Modeling ◽  
Global Development ◽  
The Impact ◽  
Economic Socialization

Research background: Globalization, digitalization and growth of technological innovations trigger development of new financial services, such as real estate crowdfunding. Seeking better return opportunities individual investors often disregard neoclassical decision-making criteria, while behavioral factors, such as social influence, emotions, cognitive abilities are gaining importance. This paper addresses the role of family economics socialization as a complex process by which individuals acquire social skills, knowledge, behavior patterns needed to make investment decision by purposively or spontaneously interacting with their family members. Purpose of the article is to assess if and how family economic socialization impacts on investor behavior in real estate crowdfunding. Methods: Research data was collected through an online survey of Lithuanian real estate crowdfunding investors. Then structural equation modeling technique was employed to investigate the impact of family economic socialization on behavior of real estate crowdfunding investors. Findings & Value added: Findings revealed that majority of real estate crowdfunding investors make bounded rationality investment decisions. Family, as one of the main agents of the economic socialization, does not ensure rationality of the crowdfunding decision-making process. Purposive family economic socialization has no impact on the behavior of investors with bounded rationality, yet it has a significant impact on behavior of rational family members. Spontaneous family economic socialization proved to have a positive and significant impact on the behavior of investors with bounded rationality. Taking into consideration rapid global development of innovative financial services market, such results might be a troubling signal for the product developers and market regulators.

Does advertising really work?

2020 ◽  
Vol 28 (3) ◽  
pp. 497-515
Author(s):  
Keke Wu ◽  
Yan Yu ◽  
Dayong Dong
Keyword(s):  
Design Methodology ◽  
Information Dissemination ◽  
Home Bias ◽  
Positive Influence ◽  
Investor Behavior ◽  
Investor Attention ◽  
Content Type ◽  
Market Effect ◽  
The Impact ◽  
Trading Response

Purpose This paper aims to examine the direct and indirect effects of advertising on investor behavior. Design/methodology/approach The authors use a novel and direct measure of investor attention: the number of investors whose watch lists has the stock. Findings The authors find that beyond its direct effect through information dissemination, advertising has an indirect effect with regard to grabbing investor attention and the trading response. The authors further find that an increase in attention induces a positive influence on the impact of advertising on investor behavior. Originality/value First, it complements studies of home bias, in which investors are more likely to buy familiar stocks. Second, it also complements the literature on advertising and investor attention and on attention and capital markets. Third, with a new and unambiguous measure of investor attention. Fourth, combining the direct and indirect aspects, this study presents a detailed description of the financial market effect of advertising.

ShariahSupervisory Board Report (SSBR) in Islamic banks

2018 ◽  
Vol 11 (2) ◽  
pp. 274-296 ◽  
Author(s):  
Abdul Rafay ◽  
Saqib Farid
Keyword(s):  
Impression Management ◽  
Supervisory Board ◽  
Investor Behavior ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Belief Adjustment ◽  
The Impact ◽  
First Time ◽  
Practical Implications

PurposeThe primary purpose of this study is to determine the impact of information ordering inShariahSupervisory Board Report (SSBR) on investors’ behavior and perception about the performance of Islamic bank in terms ofShariahcompliance and other conventional parameters.Design/methodology/approachThe study used the belief adjustment model to evaluate the desired effects of ordering positive and negative information (if any) in SSBR of an Islamic bank. This study extends the previous literature on information ordering as a pioneer experimental study in emerging economies.FindingsEvidence shows that investors and technical users of performance reports consider SSBR as significant for financial and investment decisions from the Islamic perspective. The results indicate that the primacy effect does exist and is statistically significant.Practical implicationsThe SSBR provides the management with an excellent opportunity to communicate and convince the investors aboutShariahcompliance features of an Islamic bank. Additionally, it also highlights the functional use of impression management to manipulate the investor’ behavior and perception.Originality/valueFor the first time, this study specifically investigates the effect of conscious information ordering in SSBR of Islamic banks on investors perceptions and behaviors.

scholarly journals The Impact of Financial Information on Noise Traders: Based on the Perspective of Behavioral Finance

2020 ◽  
Vol 9 (1) ◽  
pp. 28
Author(s):  
Miao Jiang
Keyword(s):  
Stock Market ◽  
Behavioral Finance ◽  
Investor Behavior ◽  
Individual Investors ◽  
Noise Traders ◽  
Healthy Development ◽  
Noise Trading ◽  
Financial Media ◽  
The Impact ◽  
Excessive Noise

<p>In China's incomplete stock market which mainly consists of retail games and short-term operations, both of the high stock turnover rate and P/E ratios reflect excessive noise trading. This article focuses on the characteristic that individual investors are susceptible to financial media information, combined with the development and characteristics of financial media. From the perspective of behavioral finance, this paper analyzes the impact of financial media on noise trading. Using behavioral finance and psychology-related knowledge, investor behavior can be better understood, so as the motivation behind noise trading. Finally, in order to promote the healthy development of the stock market, this paper makes recommendations to improve the efficiency of the capital market.</p>

scholarly journals Open-End Funds for Sustainable Economic Growth in China: The Relationship between Load Fees, Performance, and Flows

2019 ◽  
Vol 11 (22) ◽  
pp. 6514
Author(s):  
Yaping Xiao ◽  
Haishu Qiao ◽  
Ting Xie
Keyword(s):  
High Load ◽  
Investor Behavior ◽  
Fund Flows ◽  
Distraction Effect ◽  
Fee Structure ◽  
Low Performance ◽  
Almost All ◽  
Sustainable Economic Growth ◽  
The Impact ◽  
The Relationship

The financial market, including the fund market, has an increasingly important role in facilitating sustainable economic development. In this study, we examine whether investors react rationally to fund fees through the investigation of the impact of fee structures on investor behavior with open-end funds in China. We aim to determine whether performance influences the effect of the load fee on fund flows. Based on panel data that contained 240 open-end funds for the period of 2008 to 2017, we offer insight into the relationship between fee structure and the flow of open-end funds in China and find that investors react more sensitively to the load fee than operating expenses. Specifically, the coefficients of operating expenses were found to be insignificant in all regression analyses, while almost all the coefficients of load fees were statistically significant. In addition, our findings indicate that the load fee decreases net flow mainly through increasing redemption, and high load fees can make investors more rational to redeem funds with low performance. High load fees can influence investors to sell funds that perform worse in moderately performing funds, where a high load fee can increase investors’ rationality and motivate them to sell funds, resulting in the mitigation of the disposition effect. We also find that investors in larger funds and aggressive growth funds, as well as those who invest with institutional investors and higher liquidity, react more insensitively to load fees, which can be illustrated by the distraction effect.

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