IS BEHAVIOR FINANCE AFFECTED BY INCOME, LEARNING FINANCE AND LIFESTYLE?

The purpose of this study is to determine whether there is a relationship between financial behavior based on income, financial literacy and a personal lifestyle. This study uses primary data through a data collection process by distributing questionnaires online (using Google Forms) among the total of 50 respondents. The data analysis technique used here is SPSS, version 25. The results of this study indicate that there is a significant positive effect between financial literacy variables and financial behavior. Meanwhile, income and lifestyle variables seem to have no influence on financial behavior.

Fase Ketiga Teori Manajemen Keuangan: Neurofinance Sebagai Sebuah Pendekatan Baru

This article aims to describe the development of financial management disciplines from 1844 to the present and discuss neurofinance as a new concept in overcoming some of the weaknesses of previous views or theories (traditional and behavioral views). This article also contains an overview of neurofinance as a new approach to behavior-based finance as well as a cross-disciplinary approach between finance, psychology, and neuroscience. In this study, the authors show that currently financial management theory is in its third phase, where the first phase is traditional financial, and the second phase is behavior finance. A literature study is used to explain the purpose of writing by collecting various literature sources and then conducting a review and analysis.

Investor attention and cryptocurrency: Evidence from the Bitcoin market

This paper adds to the growing literature of cryptocurrency and behavioral finance. Specifically, we investigate the relationships between the novel investor attention and financial characteristics of Bitcoin, i.e., return and realized volatility, which are the two most important characteristics of one certain asset. Our empirical results show supports in the behavior finance area and argue that investor attention is the granger cause to changes in Bitcoin market both in return and realized volatility. Moreover, we make in-depth investigations by exploring the linear and non-linear connections of investor attention on Bitcoin. The results indeed demonstrate that investor attention shows sophisticated impacts on return and realized volatility of Bitcoin. Furthermore, we conduct one basic and several long horizons out-of-sample forecasts to explore the predictive ability of investor attention. The results show that compared with the traditional historical average benchmark model in forecasting technologies, investor attention improves prediction accuracy in Bitcoin return. Finally, we build economic portfolios based on investor attention and argue that investor attention can further generate significant economic values. To sum up, investor attention is a non-negligible pricing factor for Bitcoin asset.

A dynamic analysis of the relationship between investor sentiment and stock market realized volatility: Evidence from China

Investor sentiment is a research focus in behavior finance. This paper chooses five proxy variables according to China’s reality and uses a two-step principal component analysis to construct an investor sentiment index. The five proxy variables are the number of new stock accounts, turnover ratio, margin balance, net active purchasing amount, and investor attention. In the final part of this study, using the price data from the Shanghai and Shenzhen Security Exchange, this paper investigates the dynamic relationship between investor sentiment and stock market realized volatility based on the thermal optimal path. The empirical results show that when the market fluctuates severely, investor sentiment leads stock market realized volatility over one or two steps. The prediction power is also checked. The results indicate that investor sentiment indeed forecasts the realized volatility. This research supports regulators and financial institutions in taking advanced measures.

COORDINATION OF INTERESTS IN THE BUDGET POLICY OF THE RUSSIAN REGIONS

Modern regional and municipal budgetary policy is characterized with the high level of centralization of the budgetary system. In order to search the internal reserves to improve budgetary policy at the territorial level, it’s interesting to consider it in the context of identifying and harmonizing the interests of territorial authorities, population and business. The paper considers the opportunities of coordinating the interests of territorial authorities and the population in the framework of such financial interaction mechanisms as self-taxation of citizens and initiative budgeting and also analyzes the use of “budgets for citizens” as a possible tool of information impact on the interests of residents. The author characterizes subjective factors, affecting the content of interests and analyzes certain aspects of the behavior finance concept as the basis for the investigation of these interests. The analysis made it possible to identify the contradictions in the interests of the territorial authorities, population and business structures and outline the ways for their harmonization.

Behavior biases and investment decision: theoretical and research framework

Purpose This paper developed a theoretical and research framework by identifying the behavioral biases in investment decision and by presenting a review of the available literature in the field of behavior finance-related biases. This paper aims to present a compressive review of the literature available in the public domain in past five decades on behavior finance and biases and its role in investment decision-making process. It also covers insights on the subject for developing a deeper understating of the behavior of investor and related biases. Design/methodology/approach The work follows the comprehensive literature review approach to review the available literatures. The review carried out on different parameters such as year of publication, journal of publication, country, type of research, data type, statistical technique used and biases identified. This is a funnel approach to decrease the number of behavior biases up to six for further research. Findings Most of the existing works have summarized behavior finance as an emerging area in finance. This indicates the limited valuable research in developing economy in this area. This literature review helps in identifying major research gap in this domain. It helps in identifying the behavior biases which work dominantly in investment decision-making. It would be interesting to explore the area of behavior biases and their impact on investment decision of individual investors in India. Originality/value This paper worked on literature prevailing on the subject and available on various online research data source and search engines. It covers a long time frame of almost five decades (1970-2015). This paper is an attempt to look at the impact of behavior finance and biases and its role in investment decision-making process of the investor behavior. This study builds up a strong theoretical framework for researchers and academicians by detailed demonstration of available literature on behavior biases.

Editor’s Letter

We retirement thinkers are living in exciting and frustrating times. Thanks to demographic shifts in countries around the world, growing awareness of what those shifts mean, program triumphs and disasters, and foundational research on all of the above, we recognize the importance of gaining a better understanding of behavior, finance, and law in order to improve retirement outcomes. I say better because although we are unlikely to get to perfect, we can strive for better. To that end, this editor’s letter focuses on three things. The first one is aspirational, to announce a call for articles for three special issues on the following topics: 1. Sharpe’s work on retirement income analysis; 2. the effects of Rothification; and 3. gender, race, and retirement. The second is honorific—namely, to reflect on John (Jack) Bogle’s influence on retirement. The third is to highlight how the articles in this edition assist us in the broader topic of improving retirement outcomes.

Analisis Tingkat Pengetahuan, Sikap Keuangan Pribadi dan Perilaku Keuangan Pribadi Mahasiswa Jurusan Akuntansi Politeknik Negeri Malang

Many students still don’t understand how to invest or to access the capital markets and money markets, because students don’t have enough knowledge about it. Meanwhile, education about personal finance remains as a major challenge in Indonesia. The purpose of this study was to analize of Personal Financial Knowledge, personal finance attitudes, personal finance behavior for 4th year and senior students Accounting Department at State Polytechnic Of Malang. The population in this study were students from Accounting Department at State Polytechnic Of Malang, for 4th year and senior students. Data in the form are primary data and sample were spread as much as 120 for 4th and 89 for 8th semester students (n = 209). The method that used is descriptive statistics, validity test, reliability test and t-test. Personal financial knowledge and personal behavior finance were significant differences between 4th and 8th semester students. For personal financial knowledge with significant value 0.000, and personal finance behavior with significant value 0.000. Personal financial attitudes was not significant differences between 4th and 8th semester students. For personal finance attitudes with significant value 0.064.