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.

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.

scholarly journals Influence of Behavioural Biases on Investment Decision Making in Bhubaneswar Region

2019 ◽  
Vol 8 (3) ◽  
pp. 8297-8301
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Descriptive Analysis ◽  
Sampling Technique ◽  
Primary Data ◽  
Behavioural Finance ◽  
Investment Decision Making ◽  
Retail Investors ◽  
The Individual ◽  
The Impact

Behavioural Finance has gained a lot more importance in recent era. In the fast moving world where the standard finance fails to explain the irrational behavior of the investors, behavioural finance tries to identify the cause for such behavior which otherwise called as behavioural anomalies. The purpose of this research paper is to identify such anomalies and also to examine whether the behavioural biases has any influence in the investment decision making by the retail investors. This paper also put an emphasis to find out which among the different biases has the most and least influence on the individual investment decision making process. This study has used primary data for knowing the impact of factors such as gender, age, occupation, income, sector preference, and instruments preferred for investments, source of information, intention behind investment and consideration before investment. Descriptive analysis has been done to check the impact of these factors along with correlation and other. The sampling technique used here is non-probabilistic convenience sampling. The data has been collected through structured questionnaire based on five point Likert scale from the retail investors of Bhubaneswar region. This research shall interest the company, policy makers and the issuers of securities about the interest and preferences of individuals before issuing securities in the market.

Ripple effects of borrower’s default decisions on P2P markets

2021 ◽  
pp. 2050055
Author(s):  
Yong Lu ◽  
Qiang Gao ◽  
Liya Hou ◽  
Yanni Hu ◽  
Jiang Huang
Keyword(s):  
Decision Making ◽  
Social Networks ◽  
Financial Market ◽  
Default Risk ◽  
Social Stigma ◽  
Friendship Networks ◽  
Social Image ◽  
Ripple Effects ◽  
Several Variables ◽  
The Impact

Default is the most critical concern in any financial market. We study the ripple effects of borrower’s default behavior in online peer-to-peer lending with a longitudinal and comprehensive dataset consisting of 347,752 loan listings. Previous studies researched several variables that determine the default risk. We examine how both online and offline friendship networks affect borrower’s default behaviors. We found the borrowers are significantly impacted by the default behaviors of their social networks. The borrowers who have defaulter friends are twice likely to default than the borrowers who do not have. Nevertheless, not all friend types have equal influences. The impact is stronger for online friends while much weaker for offline friends. We further explain that default records could harm a person’s social image and cause social stigma costs. This study is one of the first to investigate the default decision-making in online financial market. It has significant theoretical and practical contributions to grasp the borrower’s default behaviors and further diminish default risk to stabilize the financial market.

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

scholarly journals Investment Decisions, Herd Behaviour and Retail Investors

2019 ◽  
Vol 8 (10) ◽  
pp. 3291-3294
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Psychological Factors ◽  
Investment Decisions ◽  
Sampling Technique ◽  
Primary Data ◽  
Individual Investors ◽  
Herd Behavior ◽  
Retail Investors ◽  
The Impact

Behavioral finance explains that cognitive biases influences investor decision making. Due to the influence of different behavioral biases investors do tend to make irrational decisions. Behavioral finance has highlighted the failure of traditional finance theories to account for human emotions when making investment decisions. While traditional finance theories disregard human element in decision-making, behavioral finance theories take into account the human phycology while explaining theories. Many studies have found and explained many biases that are exhibited by investors which lead to irrational investment decision making on their part. One among the many the biases herding can be considered among the most important behavior which leads to low quality investment decisions by investors. While compared to studies about herd behavior of institutional investors, the studies about individual retail investors in less. The motive behind this study is to clarify the role of demographic factors and psychological factors that influence herd behavior among individual investors. In this study the impact of demographics and psychological factors on herd behavior was studied. For this survey, primary data was collected using Judgment sampling technique and the results analyzed. Retail investors in Chennai exhibited herd behavior with regard to investment decisions. Eight factors were found to influence herd behavior.

Video assistant referees (VAR): The impact of technology on decision making in association football referees

2020 ◽  
pp. 1-7 ◽  
Author(s):  
Jochim Spitz ◽  
Johan Wagemans ◽  
Daniel Memmert ◽  
A. Mark Williams ◽  
Werner F. Helsen
Keyword(s):  
Decision Making ◽  
Association Football ◽  
Impact Of Technology ◽  
The Impact
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