Behavioral Factors Influencing Stock Investment Decision of Individuals

Purpose: The purpose of this study is to identify the behavioral factors influencing individual investors’ decisions and to analyze the relationship between these factors and investment decision performance. Design/Methodology/Approach: The tested variables were: Anchoring bias, Gambler’s Fallacy, Overconfidence bias, Availability and Representativeness bias from heuristics factor, Mental Accounting, Loss and Regret Aversion from prospect factor, and Market variables and Herding factors. The study employed exploratory and confirmatory factor analysis. In addition, structural equation modeling is applied for the testing of the hypotheses. Findings: Prospect behavioral factor is seen to have negative correlation to investment performance. Herding, Market variables and Heuristic (including overconfidence and anchoring bias) are found to have positive correlation to investment performance. Implications: To cope with intense competition among the competitors in Nepali stock market, this study provides strong evidence herding and heuristic approach that have positive indication to investment performance

Automated Algorithmic Trading for Cryptocurrencies

The proposed project work is totally supported and easy yet effective strategy named as Martingale. An automatic system which only requires only some pre-coded instructions to execute trades on variety of market variables starting from asset price to trading volume. The strategy along with each cryptocurrency, the benchmark against which the algorithm is tested is that the market’s performance. Returns are compared with the buying and so multiplying the trade volume at each loss and different scenarios are analysed to work out the chance related to the buying compared with an algorithmic strategy. Results are going to be in love with the market’s actual trends and also with some alternate possible trends to check all market scenarios. An internet interface will accompany the presentation allowing the users to check the strategies by entering their parameters and instantly seeing the results

THE INFLUENCES OF STOCK MARKET ON EXCHANGE-TRADED FUND UNDER THE THRESHOLD EFFECT OF MONETARY POLICY IN CHINA

This paper estimates the smooth transition autoregressive model with exogenous variables to evaluate the effects of stock market returns on the exchange-traded funds’ (ETFs) returns in China with reserve requirement ratio (RRR) from monetary policy as a transition variable. The sample used in this study lasts from March 4, 2005 to June 30, 2017. The empirical result points out that there is the effect of RRR value on the relationship between stock market returns and ETF return. Moreover, these effects are variable depending on the conversion and its changes over time in different variations of threshold intervals. Lastly, the larger the change of China’s stock market variables’ lag period, the smaller the impacts on Chinese ETF return.

Risk Transfer in an Electricity Market

Energy is traded using different products; long-term contracts or electricity forward contracts can assure the future transaction price. However, due to the difficulties in storing electrical energy for long periods and in large amounts, risks must be incorporated when defining contract prices through a Forward Risk Premia (FRP). This study analyzes the transfer of uncertainty from electricity market variables to the FRP in long-term contracts. We evaluate a type of econometric risk with the construction of Autoregressive Distributed Lag contagion models for the FRP using electricity demand, spot price, power generation via different technologies, and the Oceanic Niño Index. As a case study, we consider the Colombian electricity market. Our results show empirical models where the FRP has a short-term response with the following variables: hydropower generation, coal power generation, electricity demand, and Oceanic Niño Index, even though its transaction is reflected one or two years after the occurrence of the event.

Housing prices in emerging countries during COVID-19: evidence from Turkey

Purpose By considering the rapid and continuous increase of housing prices in Turkey recently, this study aims to examine the determinants of the residential property price index (RPPI). In this context, a total of 12 explanatory (3 macroeconomic, 8 markets and 1 pandemic) variables are included in the analysis. Moreover, the residential property price index for new dwellings (NRPPI) and the residential property price index for old dwellings (ORPPI) are considered for robustness checks. Design/methodology/approach A quantile regression (QR) model is used to examine the main determinants of RPPI in Turkey. A monthly time series data set for the period between January 2010 and October 2020 is included. Moreover, NRPPI and ORPPI are examined for robustness. Findings Predictions for RPPI, NRPPI and ORPPI are carried out separately at the country (Turkey) level. The results show that market variables are more important than macroeconomic variables; the pandemic and rent have the highest effect on the indices; The effects of the explanatory variables on housing prices do not change much from low to high levels, the COVID-19 pandemic and weighted average cost of funding have a decreasing effect on indices while other variables have an increasing effect in low quantiles; the pandemic and monetary policy indicators have a negative and significant effect in low quantiles whereas they are not effective in high quantiles; the results for RPPI, NRPPI and ORPPI are consistent and robust. Research limitations/implications The results of the study emphasize the importance of the pandemic, rent, monetary policy indicators and interest rates on the indices, respectively. On the other hand, focusing solely on Turkey and excluding global variables is the main limitation of this study. Therefore, the authors encourage researchers to work on other emerging countries by considering global variables. Hence, future studies may extend this study. Practical implications The COVID-19 pandemic and market variables are determined as influential variables on housing prices in Turkey whereas macroeconomic variables are not effective, which does not mean that macroeconomic variables can be fully ignored. Hence, the main priority should be on focusing on market variables by also considering the development in macroeconomic variables. Social implications Emerging countries can make housing prices stable and affordable, which will increase homeownership. Hence, they can benefit from stability in housing markets. Originality/value The QR method is performed for the first time to examine housing prices in Turkey at the country level according to the existing literature. The results obtained from the QR analysis and policy implications can also be used by other emerging countries that would like to increase homeownership to provide better living conditions to citizens by making housing prices stable and keeping them under control. Hence, countries can control housing prices and stimulate housing affordability for citizens.

Las ecotecnias como factor de sustentabilidad. El caso de las biopiscinas municipales en la ciudad de Guadalajara

Ecotechnics constitute one of the fundamental elements for the construction of conditions for sustainability since they represent a viable option to successfully face the social, economic and environmental problems that characterize contemporary society. The article that is presented analyzes the case of biopools in the city of Guadalajara and has the objective of demonstrating, in the case study, their socio-environmental and economic viability. In particular, the economic and socio-environmental benefit is calculated, not only for the users of the swimming pool service, but also for the population, environmental health and government management. With the theoretical framework of ecological economics, we adapt the traditional cost-benefit model, incorporating non-market variables that allow a socio-environmental assessment of the implementation of eco-technology. The results obtained, the annual savings of $ 17,660,498 pesos and the consequent elimination of chemical contamination in the pools, allow us to conclude that, if applied, the proposed eco-technology would bring benefits not only for the users, but also for the population and the municipal government.

Financial System and SMEs Access to Finance: A Market-Oriented Approach

The study uses a market-oriented approach to investigate the relationship between the financial system and SMEs access to finance in Nigeria between 1995 and 2019. Both indicators from the capital and money markets are used as independent variables while some macroeconomic variables such as inflation rate, interest rate and exchange rate are also used. The study made use of Auto-Regressive Distributed Lag to explore the long and short-run relationship and the result shows that the capital market has a more significant impact on SMEs access to finance than the money market. Variables such as inflation rate, exchange rate and interest rate all have a significant influence on access to finance by the SMEs. it is recommended that the money market as an important aspect of the financial system in Nigeria should be made to devote more credit to the SMEs sector as it has shown from this study that the bulk of the credit going into the private sector from the money market might not go into the SMEs sector. The inflation rate should also be controlled as well as reducing the lending rate and guide against unreasonable currency devaluation to promote access to finance by the SMEs in Nigeria.

Barriers To Mid-Rise Development in Suburban Communities in the Greater Toronto Area

Well designed mid-rise developments are generally recognized for their ability to contribute to intensification goals while at the same time being pedestrian friendly, human scale and compatible with low density neighbourhoods and historic districts. Despite these benefits, mid-rise residential developments between four and twelve storeys are comparatively rare in Greater Toronto Area suburban communities. To assess this disparity, interviews were conducted with municipal planning staff and development industry stakeholders to investigate the financial, regulatory and housing market variables that impact development of mid-rise projects. Building code, parking requirements, land costs and municipal policies and processes were all identified as contributing to high development costs for mid-rise. The market for mid-rise consists largely of affluent households without children that prefer neighbourhoods with good transit connections, vibrant street life and a wide range of amenities. These factors limit the number of locations where mid-rise can be profitably developed in suburban communities. Keywords: Mid-rise housing, smart growth, suburban communities, municipal policy

Barriers To Mid-Rise Development in Suburban Communities in the Greater Toronto Area

Well designed mid-rise developments are generally recognized for their ability to contribute to intensification goals while at the same time being pedestrian friendly, human scale and compatible with low density neighbourhoods and historic districts. Despite these benefits, mid-rise residential developments between four and twelve storeys are comparatively rare in Greater Toronto Area suburban communities. To assess this disparity, interviews were conducted with municipal planning staff and development industry stakeholders to investigate the financial, regulatory and housing market variables that impact development of mid-rise projects. Building code, parking requirements, land costs and municipal policies and processes were all identified as contributing to high development costs for mid-rise. The market for mid-rise consists largely of affluent households without children that prefer neighbourhoods with good transit connections, vibrant street life and a wide range of amenities. These factors limit the number of locations where mid-rise can be profitably developed in suburban communities. Keywords: Mid-rise housing, smart growth, suburban communities, municipal policy

The Nexus Between Financial Development and Renewable Energy Consumption: A Review For Emerging Countries

The relationship between financial development and energy consumption is the most frequently research field in finance and economy. The main objective of carrying out this study is to answer that is there a relationship between financial development and renewable energy consumption in emerging countries? In many studies carried out in international literature, the empirical findings were pointing to the existence of this relationship. In order to examine the relationship between financial development and renewable energy consumption, a total of 20 emerging countries, benefited from annual frequency data between 1990 and 2015. The system GMM estimation was used as the method of study. As a result of the analysis performed indicates that financial development does not impact renewable energy consumption in emerging countries when financial development is measured using both banking and stock market variables. Additionally, it can be said that the financial development increases renewable energy consumption if it is measured by only stock market capitalization.