What Drives Excess Trading during the COVID-19 Pandemic?

IF 0.8 Q4 BUSINESS, FINANCE Asian Journal of Business and Accounting Pub Date : 2021-06-29 DOI:10.22452/ajba.vol14no1.5

Phaik Nie Chin

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引用次数: 3

Abstract

Manuscript type: Research paperResearch aims: This study aims to examine the underlying psychological and sociological factors that drive excess trading in the Malaysian stock market during a global health crisis such as the COVID-19 pandemic. Design/Methodology/Approach: A self-administered online questionnaire was collected from 271 individual investors to examine the association between big-five personality traits and trading frequency. Demographic information and investment behaviours of investors were also included in the study. The multinomial logit regression model was used to test the research hypotheses. Research findings: Findings show that personality traits such as openness to experience and agreeableness have a significant influence on trading frequency. Demographic factors and investment behaviours such as gender, household income level, years of investment experience and type of investor all have a significant positive relationship with trading frequency. Theoretical contribution/Originality: This study contributes to the current investor behaviour literature in Malaysia, which remains to be very limited, especially during a global health crisis. The study indicates that personality traits, demographic, socio-economic factors, and investment behaviours affect the trading frequency of Malaysian. Practitioner/Policy implication: This study offers insights for financial institutions and individual investors on the type of personality traits, demographic, socio-economic factors, and investment behaviours that drive excess trading during a global health crisis. The findings provide important contributions to avoid serious mistakes in investment analysis and trading profitable investment strategies, thus improving individual and team performance. Research limitation/Implications: Some results are not significant and may be limited due to the small sample size used in this study. Future research could recruit more retail investors to confirm the significance level of those variables. Besides, the study can be conducted after the COVID-19 pandemic to explore whether there is any significant difference in the variables during and after the global health crisis.

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在COVID-19大流行期间，是什么导致了过度交易?

研究目的:本研究旨在研究在COVID-19大流行等全球健康危机期间推动马来西亚股市过度交易的潜在心理和社会学因素。设计/方法/方法:从271名个人投资者中收集了一份自我管理的在线问卷，以检验大五人格特征与交易频率之间的关系。研究还包括投资者的人口统计信息和投资行为。采用多项logistic回归模型对研究假设进行检验。研究发现:研究结果表明，开放性、亲和性等性格特征对交易频率有显著影响。性别、家庭收入水平、投资年限、投资者类型等人口统计学因素和投资行为与交易频率均存在显著正相关关系。理论贡献/独创性:本研究对马来西亚目前的投资者行为文献作出了贡献，这些文献仍然非常有限，特别是在全球卫生危机期间。研究表明，人格特质、人口、社会经济因素和投资行为影响马来西亚人的交易频率。从业者/政策启示:本研究为金融机构和个人投资者提供了在全球卫生危机期间驱动过度交易的人格特征、人口、社会经济因素和投资行为类型的见解。研究结果为避免投资分析中的严重错误和交易有利可图的投资策略，从而提高个人和团队的绩效提供了重要贡献。研究限制/启示:由于本研究使用的样本量较小，一些结果并不显著，可能受到限制。未来的研究可以招募更多的散户投资者来确认这些变量的显著性水平。此外，研究可以在COVID-19大流行之后进行，以探索全球卫生危机期间和之后的变量是否存在显著差异。

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来源期刊

Asian Journal of Business and Accounting BUSINESS, FINANCE-

CiteScore

2.00

自引率

11.10%

发文量

期刊介绍： An academic journal that aims to advance knowledge in the business and accounting disciplines, to narrow the gap between theory and practice, and to set direction for policy initiatives in Asia. Welcome to the Asian Journal of Business and Accounting (AJBA). AJBA is an international refereed journal, published biannually (30th June and 30th December) by the Faculty of Business and Accountancy, University of Malaya, Malaysia. AJBA aims to publish scholarly business researches that are relevant to Malaysia and the Asian region. It intends to highlight the practical implications in promoting better business decision making process and the formulation of public policy in Asia. This journal publishes theoretical, conceptual, and empirical papers within the broad areas of business and accounting in Asia. The AJBA covers a broad spectrum of the business and accounting disciplines. A suggestive (though not necessarily comprehensive) list of areas that would be included in this journal are: general management, strategic management, human resource management, organizational behaviour, labour and industrial relations, international business management, business communication, entrepreneurship, leadership, management science, operations management, production management, supply chain management, marketing management, brand management, consumer behaviour, information management, e-marketing, e-commerce, quality management, retailing, service marketing, hospitality management, hotel and tourism management, asset pricing, capital and money markets, corporate finance, derivatives markets, finance and banking, financial economics, etc.