We propose the first factor model that explains cross-sectional variation in optionable stock returns. Our model includes new factors based on option-implied volatility minus realized volatility, the call minus put implied volatility spread, and the difference between changes in call and put implied volatilities, along with the market factor. The model outperforms previously-proposed factor models at explaining the performance of portfolios of optionable stocks formed by sorting on other option-based predictors, as well as other well-known stock return predictors. Our model provides a benchmark for assessing whether portfolios of optionable stocks generate returns that are not explained by previously-documented phenomena.
{"title":"In Search of a Factor Model for Optionable Stocks","authors":"Turan G. Bali, Scott Murray","doi":"10.2139/ssrn.3487947","DOIUrl":"https://doi.org/10.2139/ssrn.3487947","url":null,"abstract":"We propose the first factor model that explains cross-sectional variation in optionable stock returns. Our model includes new factors based on option-implied volatility minus realized volatility, the call minus put implied volatility spread, and the difference between changes in call and put implied volatilities, along with the market factor. The model outperforms previously-proposed factor models at explaining the performance of portfolios of optionable stocks formed by sorting on other option-based predictors, as well as other well-known stock return predictors. Our model provides a benchmark for assessing whether portfolios of optionable stocks generate returns that are not explained by previously-documented phenomena.","PeriodicalId":389424,"journal":{"name":"FinPlanRN: Other Investments (Topic)","volume":"85 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128185022","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We investigate differences in the structures of investor stock trading networks prior to and during the global financial crisis of 2007-2008. We find that the population of investor networks for 45 securities have different structures between pre-crisis and crisis periods with statistical significance. Moreover, we observe the herding tendency and high synchronization in trade timing during the crisis, which is supported by the literature. These findings can be used to develop early-warning signals for crises in stock markets.
{"title":"Comparing Investor Networks in Different Market Conditions","authors":"Viet Hung Le","doi":"10.2139/ssrn.3575664","DOIUrl":"https://doi.org/10.2139/ssrn.3575664","url":null,"abstract":"We investigate differences in the structures of investor stock trading networks prior to and during the global financial crisis of 2007-2008. We find that the population of investor networks for 45 securities have different structures between pre-crisis and crisis periods with statistical significance. Moreover, we observe the herding tendency and high synchronization in trade timing during the crisis, which is supported by the literature. These findings can be used to develop early-warning signals for crises in stock markets.","PeriodicalId":389424,"journal":{"name":"FinPlanRN: Other Investments (Topic)","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132202687","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this study, we examine the resilience of Bitcoin (BTC) to hedge Chinese aggregate and sectoral equity markets and the returns spillover to Altcoins onset the
在本研究中，我们考察了比特币(BTC)对冲中国总体和行业股票市场的弹性，以及对山寨币的回报溢出效应
{"title":"Did Bitcoin Act as An Antidote to the Chinese Equity Market and Booster to Altcoins during the Novel Coronavirus Outbreak?","authors":"R. K. Jana, Debojyoti Das","doi":"10.2139/ssrn.3544794","DOIUrl":"https://doi.org/10.2139/ssrn.3544794","url":null,"abstract":"In this study, we examine the resilience of Bitcoin (BTC) to hedge Chinese aggregate and sectoral equity markets and the returns spillover to Altcoins onset the","PeriodicalId":389424,"journal":{"name":"FinPlanRN: Other Investments (Topic)","volume":"23 21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132909479","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Equity studies are conducted by professionals, who also provide buy/hold/sell recommendations to investors. Nowadays, target prices determined by financial analysts are publicly available to investors, who may decide to use them for investment purposes. Studying the accuracy of such analysts’ forecasts is, thus, of paramount importance. Based upon empirical data on 50 of the biggest (larger capitalisation) European stocks over a 15-year period, from 2004 to 2019, and using a panel data approach, this is the first study looking at overall accuracy in European stock markets. We find that Bloomberg’s 12-month consensus target prices have no predictive power over future market prices. Our panel results are robust to company fixed effects and subperiod analysis. These results are in line with the (mostly US-based) evidence in the literature. Extending common practice, we perform a comparative accuracy analysis, comparing the accuracy of target prices with that of simple capitalisations of current prices. It turns out target prices are not better at forecasting than simple capitalisations. When considering individual regressions, accuracy is still very low, but it varies considerably across stocks. By also analysing the relationship between both measures—target prices and capitalised prices—we find evidence that, for some stocks, capitalised prices partially explain how target prices are determined.
{"title":"Accuracy of European Stock Target Prices","authors":"Joana Almeida, R. M. Gaspar","doi":"10.2139/ssrn.3644963","DOIUrl":"https://doi.org/10.2139/ssrn.3644963","url":null,"abstract":"Equity studies are conducted by professionals, who also provide buy/hold/sell recommendations to investors. Nowadays, target prices determined by financial analysts are publicly available to investors, who may decide to use them for investment purposes. Studying the accuracy of such analysts’ forecasts is, thus, of paramount importance. Based upon empirical data on 50 of the biggest (larger capitalisation) European stocks over a 15-year period, from 2004 to 2019, and using a panel data approach, this is the first study looking at overall accuracy in European stock markets. We find that Bloomberg’s 12-month consensus target prices have no predictive power over future market prices. Our panel results are robust to company fixed effects and subperiod analysis. These results are in line with the (mostly US-based) evidence in the literature. Extending common practice, we perform a comparative accuracy analysis, comparing the accuracy of target prices with that of simple capitalisations of current prices. It turns out target prices are not better at forecasting than simple capitalisations. When considering individual regressions, accuracy is still very low, but it varies considerably across stocks. By also analysing the relationship between both measures—target prices and capitalised prices—we find evidence that, for some stocks, capitalised prices partially explain how target prices are determined.","PeriodicalId":389424,"journal":{"name":"FinPlanRN: Other Investments (Topic)","volume":"83 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124390189","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-11-01DOI: 10.13106/jafeb.2020.vol7.no1.29
P. Yooyanyong, Issara Suwanragsa, Nopphon Tangjitprom
Stock price multiple is one of the most well-known equity valuation technique used to forecast equity price. It measures by multiplying “the ratio of stock price to a value driver” by a value driver. The value driver can be earning per share (EPS), sales or other financial measurements. The objective of price multiple technique is to evaluate the value of assets and compare how similar assets are priced in the market. Although stock price multiple technique is common in financial filed, studies on the application of the technique in Thailand is still limited. The present study is conducted to serve three major objectives. The first objective is to apply the technique to measure value of firms in banking sector in the Stock Exchange of Thailand. The second objective is to develop composite price multiple index to forecast equity prices. The third objective is to compare valuation accuracy of different value drivers of price multiple (i.e. EPS, Earnings Growth, Earnings Before Interest Taxes Depreciation and Amortization, Sales, Book Value and Composite Index) in forecasting equity prices. Results indicated that EPS is the most accurate value drivers of price multiple used to forecast equity price of firms in baking sector.
{"title":"The Accuracy of Various Value Drivers of Price Multiple Method in Determining Equity Price","authors":"P. Yooyanyong, Issara Suwanragsa, Nopphon Tangjitprom","doi":"10.13106/jafeb.2020.vol7.no1.29","DOIUrl":"https://doi.org/10.13106/jafeb.2020.vol7.no1.29","url":null,"abstract":"Stock price multiple is one of the most well-known equity valuation technique used to forecast equity price. It measures by multiplying “the ratio of stock price to a value driver” by a value driver. The value driver can be earning per share (EPS), sales or other financial measurements. The objective of price multiple technique is to evaluate the value of assets and compare how similar assets are priced in the market. Although stock price multiple technique is common in financial filed, studies on the application of the technique in Thailand is still limited. The present study is conducted to serve three major objectives. The first objective is to apply the technique to measure value of firms in banking sector in the Stock Exchange of Thailand. The second objective is to develop composite price multiple index to forecast equity prices. The third objective is to compare valuation accuracy of different value drivers of price multiple (i.e. EPS, Earnings Growth, Earnings Before Interest Taxes Depreciation and Amortization, Sales, Book Value and Composite Index) in forecasting equity prices. Results indicated that EPS is the most accurate value drivers of price multiple used to forecast equity price of firms in baking sector.","PeriodicalId":389424,"journal":{"name":"FinPlanRN: Other Investments (Topic)","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117024098","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
T. Mooney, Ravindra Rapaka, Tawanda Vera, Ritabrata Bhattacharyya
Our work aims to develop a stand-alone trading system to construct portfolios that show the benefits of value and momentum style integration and presents the effectiveness of alternative integration methods for long-only absolute return funds, which seeks absolute returns that are not highly correlated to traditional assets such as stocks and bonds. Our approach uses the CRoss Industry Standard Process for Data Mining (CRISP-DM) model to guide the necessary steps, processes, and workflows for executing our project.
{"title":"Dynamic Regime Strategy for Stress Testing and Optimizing Institutional Investor Portfolios","authors":"T. Mooney, Ravindra Rapaka, Tawanda Vera, Ritabrata Bhattacharyya","doi":"10.2139/ssrn.3438272","DOIUrl":"https://doi.org/10.2139/ssrn.3438272","url":null,"abstract":"Our work aims to develop a stand-alone trading system to construct portfolios that show the benefits of value and momentum style integration and presents the effectiveness of alternative integration methods for long-only absolute return funds, which seeks absolute returns that are not highly correlated to traditional assets such as stocks and bonds. Our approach uses the CRoss Industry Standard Process for Data Mining (CRISP-DM) model to guide the necessary steps, processes, and workflows for executing our project.","PeriodicalId":389424,"journal":{"name":"FinPlanRN: Other Investments (Topic)","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115980318","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jill Bisco, Suzanne M. Gradisher, Barry S. Mulholland
The financial advising professions are concerned that not only will there be insufficient talent in the workforce to replace those professionals that will soon retire and to meet the expected growth in advisors over the next decade, but the profession is also lacking in diversity. This paper focuses on The University of Akron’s Women and Diversity Symposium, which is the result of the alignment of industry initiatives to increase the number of women and people of diverse backgrounds in the financial services industry. The secondary goal is to increase the number of undergraduate students choosing financial planning as a degree. Through an analysis of surveys completed by attendees at the symposium, this research has shown that the symposium improved the impression of the financial services industry among those that attended.
{"title":"Women and Diversity: Why the Conversation Must Continue in Financial Services","authors":"Jill Bisco, Suzanne M. Gradisher, Barry S. Mulholland","doi":"10.2139/ssrn.3229284","DOIUrl":"https://doi.org/10.2139/ssrn.3229284","url":null,"abstract":"The financial advising professions are concerned that not only will there be insufficient talent in the workforce to replace those professionals that will soon retire and to meet the expected growth in advisors over the next decade, but the profession is also lacking in diversity. This paper focuses on The University of Akron’s Women and Diversity Symposium, which is the result of the alignment of industry initiatives to increase the number of women and people of diverse backgrounds in the financial services industry. The secondary goal is to increase the number of undergraduate students choosing financial planning as a degree. Through an analysis of surveys completed by attendees at the symposium, this research has shown that the symposium improved the impression of the financial services industry among those that attended.","PeriodicalId":389424,"journal":{"name":"FinPlanRN: Other Investments (Topic)","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122516088","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Korean Abstract: 본 연구는 인생중심 재무설계라고 불리는 라이프플래닝 상담사례에 대한 내용이다. 실제 재무설계사가 재무설계 프로세스를 준수하며 고객과 상담을 진행하였던 사례이며, 우리 주변에 흔히 볼 수 있는 평범한 한국 가정에 대한 내용을 담았다. 본 사례연구에서는 재무설계 각 분야인 지출관리, 위험(보험)설계, 투자설계, 부동산설계, 은퇴설계 등을 재무설계 6단계 프로세스를 준수하며 진행하였고, 라이프플래닝 기법을 적용하여 고객 인생 전반의 문제를 해결하기 위하여 상담을 진행하였다. 본 사례에서는 중학생 아들을 둔 50대 가장으로서 한부모가정을 이끌어가는 어머니가 겪는 재무관련 문제 뿐 아니라, 청소년 자녀와의 사이에서 생기는 다양한 고민을 라이프플래닝으로 풀어가고자 하는 과정을 포함하였다. 재무설계사는 고객의 가장 중요한 재무적 문제를 노후대비와 자녀학자금 문제로 파악하였고, 이를 효과적으로 해결하기 위한 재무설계안을 제시하였다. 본 연구를 통하여 재무설계 6단계 프로세스 각 단계의 의미와 라이프플래닝을 통하여 고객과 소통하는 모습의 중요성을 다시 한 번 생각해 볼 수 있으며, 해당 경험이 부족하여 갈증을 느끼고 있는 많은 재무설계사들에게 간접적인 경험을 제공하고자 한다. English Abstract: This study presents a case study of Life Planning which is termed life - oriented financial planning. This includes an actual financial planning process via which a financial planner consulted with the customers in a six-step process of financial planning, which reflects the common problems of Korean households. In this case study, cash management, insurance planning, investment planning, real estate planning, and retirement planning, were implemented in accordance with the six steps of financial planning. The consultations were carried out to solve the various problems affecting the clients’ whole lives. The proposed financial plans include the process of solving various troubles that may occur between mothers and their adolescent sons, and the financial problems of mothers in their 50s who lead single parent families from the life planning perspectives. In this case study, the financial planner identified ‘retirement preparation’ and ‘tuition’ as the most important financial issues of the clients, and he proposed financial planning propositions in order to solve them effectively. This study emphasizes the importance of communication with customers and the six- step process in financial planning. It also provides indirect experience for many financial planners who are lacking in any actual experience with Life Planning.
Korean Abstract:本研究是关于被称为“人生中心财务设计”的生活规划咨询事例的内容。实际的财务设计师遵守财务设计程序，与顾客进行商谈的事例，包含了我们周围常见的平凡的韩国家庭的内容。本案例研究中,财务设计各领域的支出管理,危险(保险)设计,投资退出,房地产设计,设计等遵守财务设计6个阶段进程,进行了,life planing技法运用顾客为了解决人生的全部问题进行了咨询。本事例中包括了作为有上初中的儿子的50多岁家长，带领单亲家庭的母亲所经历的财务相关问题，以及通过生活规划来解决与青少年子女之间产生的多样的苦恼的过程。财务设计师把顾客最重要的财务问题归结为养老准备和子女学费问题，并提出了有效解决这一问题的财务设计方案。通过本研究财务设计6阶段进程各阶段的意义和生活规划公司通过与客户沟通的形象的重要性,再可以考虑,有关经验不足,感到渴的许多财务设计师提供间接的经验。English Abstract: This study presents a case study of Life Planning which is termed Life - oriented financial Planning。This includes an actual financial planning process via which a financial planner consulted with the customers ina six-step process of financial planning;which reflects the common problems of Korean households。In this case study, cash management, insurance planning, investment planning, real estate planning, and retirement planning, were implemented In accordance with the six steps of financial planning。The consultations were carried out to solve The various problems affecting The clients ' whole lives。The proposed financial plans include The process of solving various troubles that may occur between mothers and their adolescent sonsand the financial problems of mothers in their 50s who lead single parent families from the life planning perspectives。In this case study, the financial planner identified ' retirement preparation ' and ' tuition ' as the most important financial issues of the clients，and he proposed financial planning propositions in order to solve them effectively。study emphasizes the importance of communication with customers and the six- step process in financial planning。It also provides indirect experience for many financial planners who are lacking in any actual experience with Life Planning。
{"title":"50대 홀어머니 가장을 위한 인생중심 재무설계 사례연구 (A Case Study of the Life Planning for Single Mothers in Their 50s)","authors":"Sung Soon Kim","doi":"10.2139/ssrn.3204160","DOIUrl":"https://doi.org/10.2139/ssrn.3204160","url":null,"abstract":"<b>Korean Abstract:</b> 본 연구는 인생중심 재무설계라고 불리는 라이프플래닝 상담사례에 대한 내용이다. 실제 재무설계사가 재무설계 프로세스를 준수하며 고객과 상담을 진행하였던 사례이며, 우리 주변에 흔히 볼 수 있는 평범한 한국 가정에 대한 내용을 담았다. 본 사례연구에서는 재무설계 각 분야인 지출관리, 위험(보험)설계, 투자설계, 부동산설계, 은퇴설계 등을 재무설계 6단계 프로세스를 준수하며 진행하였고, 라이프플래닝 기법을 적용하여 고객 인생 전반의 문제를 해결하기 위하여 상담을 진행하였다. 본 사례에서는 중학생 아들을 둔 50대 가장으로서 한부모가정을 이끌어가는 어머니가 겪는 재무관련 문제 뿐 아니라, 청소년 자녀와의 사이에서 생기는 다양한 고민을 라이프플래닝으로 풀어가고자 하는 과정을 포함하였다. 재무설계사는 고객의 가장 중요한 재무적 문제를 노후대비와 자녀학자금 문제로 파악하였고, 이를 효과적으로 해결하기 위한 재무설계안을 제시하였다. 본 연구를 통하여 재무설계 6단계 프로세스 각 단계의 의미와 라이프플래닝을 통하여 고객과 소통하는 모습의 중요성을 다시 한 번 생각해 볼 수 있으며, 해당 경험이 부족하여 갈증을 느끼고 있는 많은 재무설계사들에게 간접적인 경험을 제공하고자 한다. <b>English Abstract:</b> This study presents a case study of Life Planning which is termed life - oriented financial planning. This includes an actual financial planning process via which a financial planner consulted with the customers in a six-step process of financial planning, which reflects the common problems of Korean households. In this case study, cash management, insurance planning, investment planning, real estate planning, and retirement planning, were implemented in accordance with the six steps of financial planning. The consultations were carried out to solve the various problems affecting the clients’ whole lives. The proposed financial plans include the process of solving various troubles that may occur between mothers and their adolescent sons, and the financial problems of mothers in their 50s who lead single parent families from the life planning perspectives. In this case study, the financial planner identified ‘retirement preparation’ and ‘tuition’ as the most important financial issues of the clients, and he proposed financial planning propositions in order to solve them effectively. This study emphasizes the importance of communication with customers and the six- step process in financial planning. It also provides indirect experience for many financial planners who are lacking in any actual experience with Life Planning.","PeriodicalId":389424,"journal":{"name":"FinPlanRN: Other Investments (Topic)","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123386444","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The dramatic increase in the importance of U.S. dividends since 2001 means that financial analysts may soon demand access to updated dividend discount models (DDMs). To address this need, we introduce a new “super annuity formula” that can be used in the modular construction of multiple-stage level-growth DDMs. We also use the super annuity formula to approximate a three-stage transitional-growth DDM very accurately. We show that these advanced DDMs are relatively robust to the input assumptions. Going forward, every financial analyst should have knowledge of and access to these updated DDMs, so as to capitalize on the growing importance of dividends.
{"title":"Building Modular Dividend Discount Models Using a 'Super Annuity Formula'","authors":"T. Crack, Helen Roberts","doi":"10.2139/ssrn.3643656","DOIUrl":"https://doi.org/10.2139/ssrn.3643656","url":null,"abstract":"The dramatic increase in the importance of U.S. dividends since 2001 means that financial analysts may soon demand access to updated dividend discount models (DDMs). To address this need, we introduce a new “super annuity formula” that can be used in the modular construction of multiple-stage level-growth DDMs. We also use the super annuity formula to approximate a three-stage transitional-growth DDM very accurately. We show that these advanced DDMs are relatively robust to the input assumptions. Going forward, every financial analyst should have knowledge of and access to these updated DDMs, so as to capitalize on the growing importance of dividends.","PeriodicalId":389424,"journal":{"name":"FinPlanRN: Other Investments (Topic)","volume":"214 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115541632","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The term financial planning has been an area of research interest since few years. Studies have underlined the influence of various cognitive factors in individuals’ financial decisions. The present study is also trying to underline the influence of various cognitive factors in personal financial planning of Indian households. The term financial cognition considered three components namely financial attitude, risk attitude and financial knowledge and raise the concern about the influence of various cognitive factors on individual personal financial planning. Especially in India, being a conservative attitude towards financial decisions, individual households do have higher influence of various cognitive and behavioral aspects in their suboptimal decision towards personal financial planning. The present study is putting forward those aspects of personal financial planning decisions of Indian households. The main objective of the model is to create the bare minimum structure to demonstrate the influence of financial cognition on personal financial planning among Indian households. The study mainly tried to explore the fundamental principle of subjective thinking towards financial decision. The model would represent the influence of financial cognition towards people financial decisions and can be helpful in exploring the financial information process. The study used PLS-SEM to explore PFP process in all the area of financial interest i.e. cash flow management, investment, insurance, retirement, tax and estate planning. The salaried individuals from different sectors are considered as sample for the study. The analysis has been done with 452 responses from Indian households.
{"title":"A Study on Influence of Financial Cognition on Personal Financial Planning of Indian Households","authors":"M. Mahapatra, Anupam De","doi":"10.2139/ssrn.3040807","DOIUrl":"https://doi.org/10.2139/ssrn.3040807","url":null,"abstract":"The term financial planning has been an area of research interest since few years. Studies have underlined the influence of various cognitive factors in individuals’ financial decisions. The present study is also trying to underline the influence of various cognitive factors in personal financial planning of Indian households. The term financial cognition considered three components namely financial attitude, risk attitude and financial knowledge and raise the concern about the influence of various cognitive factors on individual personal financial planning. Especially in India, being a conservative attitude towards financial decisions, individual households do have higher influence of various cognitive and behavioral aspects in their suboptimal decision towards personal financial planning. The present study is putting forward those aspects of personal financial planning decisions of Indian households. The main objective of the model is to create the bare minimum structure to demonstrate the influence of financial cognition on personal financial planning among Indian households. The study mainly tried to explore the fundamental principle of subjective thinking towards financial decision. The model would represent the influence of financial cognition towards people financial decisions and can be helpful in exploring the financial information process. The study used PLS-SEM to explore PFP process in all the area of financial interest i.e. cash flow management, investment, insurance, retirement, tax and estate planning. The salaried individuals from different sectors are considered as sample for the study. The analysis has been done with 452 responses from Indian households.","PeriodicalId":389424,"journal":{"name":"FinPlanRN: Other Investments (Topic)","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122377866","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：