An Empirical Analysis of the Risk-Return Preferences of Individual Investors

1977 ◽  
Vol 12 (3) ◽  
pp. 377 ◽  
Author(s):  
H. Kent Baker ◽  
Michael B. Hargrove ◽  
John A. Haslem
Keyword(s):  
Empirical Analysis ◽  
Individual Investors ◽  
Risk Return

scholarly journals FINANCIAL CRISIS AND LOCAL BANKS: A REVIEW OF BANK-FIRM RELATIONSHIPS IN ITALY

2017 ◽  
Vol 14 (3) ◽  
pp. 249-258 ◽  
Author(s):  
Andrea Quintiliani
Keyword(s):  
Financial Crisis ◽  
Empirical Analysis ◽  
Research Question ◽  
Banking System ◽  
Relationship Lending ◽  
Critical Elements ◽  
Risk Return ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

This paper focuses on bank-firm relationship in an economic deeply changing environment. The objectives of the paper are two-fold: to understand, compared to the overall banking system, if the lending activities and economic-financial performances of Italian local banks have changed after the outbreak of the financial crisis; and to understand what are the conditions that allow to develop a model of a local bank capable of supporting the development routes of SMEs, by an appropriate risk/return profile. In order to answer the first research question, the paper presented an empirical analysis, covering the period 2007-2011, of Italian Cooperative Credit Banks (a particular category of local banks) compared with the system of bank groups with operability spread over much of the Italian territory and not. The empirical comparative analysis has the aim to see the effects of the crisis on the relationship bank-firm through the reading of the impact on the dynamics of lending and on the profiles of structure, riskiness, profitability and efficiency of the banks under examination. In order to provide an answer to the second research question, the paper provides some insight of evolutionary nature reflection in the bank-firm relationship. In accordance with the doctrinal postulates of the relationship lending the empirical analysis shows how the financial then real crisis has not induced Cooperative Credit Banks to restrict credit to local firms. The survey evidences have however highlighted some critical elements that are reflected inevitably on the local bank’s risk-return profile. Based only on quantitative data of statement, the empirical analysis represents a limit in this kind of research. This paper is useful to stimulate the debate of experts as well as to focus on the studies of local banks in particular in the light of their anti-cyclic role. Even if abounding in subjects about local banks and relationship lending literature faces only marginally the effects of global crisis on business profiles of local banks.

scholarly journals An Evaluation of Relationship between Risk, Return and Social Structure and their Impact on Individual Investor’s Behaviour at Pakistan Stock Exchange

2019 ◽  
Vol 15 (1) ◽  
pp. 184-192
Author(s):  
Sumair Farooq ◽  
Keyword(s):  
Social Structure ◽  
Stock Exchange ◽  
Research Paper ◽  
Individual Investors ◽  
Probability Method ◽  
Risk And Return ◽  
Secondary Sources ◽  
Risk Return ◽  
Investor Behaviour

This research paper focusing on twofold purposes: where the first part focuses on providing positive evidence on the nature of relationship between risk and return. Moreover, the second part of the paper deals with analyzing the role of risk and return and social structures on the investor’s behaviour in specific consideration with Pakistan Stock Exchange (PSX) (formerly Karachi Stock Exchange; KSE). This research paper has employed a quantitative approach for the purpose of collection of data and analysis of the results in order to fulfil the aim and objectives of the study. The data for risk and return has been collected from secondary sources. The risk and return for 50 companies that are listed on Pakistan Stock Exchange and at least once paid dividend have been calculated for 11 years which is from 2007 to 2017. Moreover, in order to collect the data for social structure and investor  behaviour  the  researcher  has  used  survey  questionnaire  as  the  research  instrument.  The  questionnaire was filled by 558 individual investors who have invested their capital in the stock of companies listed on Pakistan Stock Exchange. The sampling method that was used for the purpose of selecting respondents for getting the questionnaires filled was non-probability method. For all the independent variables the null hypotheses are rejected thus showing significance of relationship. The results from  the  regression  analysis  has  shown  that  among  all  the  predicting  variables  social  structure explains the lowest amount of variation in investor’s behaviour. Thus, overall it can be said that the results of this study are in alignment with the previous researches.

scholarly journals Stress Tests By The European Banking Authority: The Immunity Of Italian Cooperative Banks

2017 ◽  
Vol 33 (5) ◽  
pp. 873-886
Author(s):  
Andrea Quintiliani
Keyword(s):  
Comparative Analysis ◽  
Empirical Analysis ◽  
Stress Tests ◽  
Critical Elements ◽  
Risk Return ◽  
European Banking Authority ◽  
European Banking ◽  
Cooperative Banks ◽  
The Empirical Analysis ◽  
Quantitative Nature

Purpose. The objectives of the paper are two-fold. The first objective of the research is formulated with the intent to analyze the existence or not of a possible “European Banking Authority (EBA) effect” on the credit offer of local banks compared with national banks subject to the requests of capital from European Authority. The second research objective aims to understand what are the conditions that allow to develop a model of a local bank capable of supporting SMEs, with a suitable risk-return profile. Methodology. This paper presents an empirical comparative analysis between Cooperative Credit Banks (BCCs) and Italian banking groups. Findings. The empirical analysis shows how the financial then real crisis has not induced BCCs to restrict credit to firms. In particular, the BCCs not included in stress exercises, show, unlike national banks, a substantial “independence” of credit trend from the advices of the Authority. The survey evidences have however highlighted some critical elements that are reflected inevitably on the local bank’s risk-return profile. Research Limitations. The quantitative nature of the empirical analysis must be followed by a qualitative analysis in order to strengthen the validity of the results. Implications. This work will be useful to stimulate the debate on the studies of local banks and their anti-cyclic role in favor of the SMEs. Originality. The work affects an aspect which has hitherto been little studied.

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