Pub Date : 2023-05-10DOI: 10.1108/rbf-01-2023-0026
Dalina Amonhaemanon
Purpose“Poor, Stressed, Drink (alcohol), and Gambling” is one of the campaigns for poverty eradication in Thailand. This study focuses on informal workers—gamblers—who belong to low-income groups and are not covered by the law as an employer. The main objective was to investigate the factors affecting financial stress among informal laborers and determine the factors that drive informal workers to buy lottery tickets (classified by economic, psychological and social motives).Design/methodology/approachThe authors applied binary logistic regression to determine what factors affected financial stress and multinomial logistic regression was applied to examine the factors affecting the motives for buying the lottery.FindingsAccording to the study's results, factors including education, income, gambling intensity, level of financial literacy, saving and knowledge about finance in general influenced both economic and psychological motives negatively. However, gender, status, age, level of risk tolerance, self-evaluated level of acceptable risk and knowledge about compound interest influenced both economic motives and psychological motives positively. It is worth noting that both the self-evaluation of their level of financial literacy and knowledge about inflation resulted in effects moving in different directions, with self-evaluation of their level of financial literacy and knowledge about inflation negatively affecting economic motives, but positively affecting psychological motives.Practical implicationsThe results of this study are expected to help policymakers understand more about this issue since it will illustrate the relationships between financial stress and financial literacy, financial behaviors, financial attitudes and risk tolerance and gambling behaviors. After all, financial stress is a significant problem affecting individuals, their families and the community, and it stems from various complex factors. Therefore, the government and counseling agencies should apply active strategies to mitigate these issues and lessen the resulting financial stress by providing financial literacy projects, as well as financial counseling.Social implicationsLow financial literacy, especially being inefficient at managing one's finances, unusually comes with unhealthy financial thought patterns, as well as a lack of systematic financial management. Furthermore, the lack of financial literacy can potentially lead to unfavorable circumstances. When one falls into uncontrollable situations, including divorce, becoming unemployed, having health problems, being in toxic relationships, loss of a breadwinner, an unexpected pregnancy, etcetera, they could easily find themselves failing to properly cope with these problems and become stressed. Finally, they are also more at risk to take illicit drugs or begin gambling more frequently.Originality/valueOne of the key elements that reduces financial stress is a person's finances, which is thought to have a signific
{"title":"Financial stress and gambling motivation: the importance of financial literacy","authors":"Dalina Amonhaemanon","doi":"10.1108/rbf-01-2023-0026","DOIUrl":"https://doi.org/10.1108/rbf-01-2023-0026","url":null,"abstract":"Purpose“Poor, Stressed, Drink (alcohol), and Gambling” is one of the campaigns for poverty eradication in Thailand. This study focuses on informal workers—gamblers—who belong to low-income groups and are not covered by the law as an employer. The main objective was to investigate the factors affecting financial stress among informal laborers and determine the factors that drive informal workers to buy lottery tickets (classified by economic, psychological and social motives).Design/methodology/approachThe authors applied binary logistic regression to determine what factors affected financial stress and multinomial logistic regression was applied to examine the factors affecting the motives for buying the lottery.FindingsAccording to the study's results, factors including education, income, gambling intensity, level of financial literacy, saving and knowledge about finance in general influenced both economic and psychological motives negatively. However, gender, status, age, level of risk tolerance, self-evaluated level of acceptable risk and knowledge about compound interest influenced both economic motives and psychological motives positively. It is worth noting that both the self-evaluation of their level of financial literacy and knowledge about inflation resulted in effects moving in different directions, with self-evaluation of their level of financial literacy and knowledge about inflation negatively affecting economic motives, but positively affecting psychological motives.Practical implicationsThe results of this study are expected to help policymakers understand more about this issue since it will illustrate the relationships between financial stress and financial literacy, financial behaviors, financial attitudes and risk tolerance and gambling behaviors. After all, financial stress is a significant problem affecting individuals, their families and the community, and it stems from various complex factors. Therefore, the government and counseling agencies should apply active strategies to mitigate these issues and lessen the resulting financial stress by providing financial literacy projects, as well as financial counseling.Social implicationsLow financial literacy, especially being inefficient at managing one's finances, unusually comes with unhealthy financial thought patterns, as well as a lack of systematic financial management. Furthermore, the lack of financial literacy can potentially lead to unfavorable circumstances. When one falls into uncontrollable situations, including divorce, becoming unemployed, having health problems, being in toxic relationships, loss of a breadwinner, an unexpected pregnancy, etcetera, they could easily find themselves failing to properly cope with these problems and become stressed. Finally, they are also more at risk to take illicit drugs or begin gambling more frequently.Originality/valueOne of the key elements that reduces financial stress is a person's finances, which is thought to have a signific","PeriodicalId":44559,"journal":{"name":"Review of Behavioral Finance","volume":"34 1","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-05-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86600166","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 : 2023-05-09DOI: 10.1108/rbf-09-2022-0215
Felix Reschke, Jan-Oliver Strych
Purpose The authors explore how the sentiment expressed by emojis in comments on stocks is associated with the stocks' subsequent returns. Design/methodology/approach By applying our own analyzer, the authors find a sentiment effect of emojis on stocks returns separately to the plain text-expressed sentiment in Reddit posts about meme stocks such as Gamestop during the Covid-19 pandemic. Findings The authors document that a one-standard deviation change in emoji sentiment magnitude measured as the quantity of positive emoji sentiment posts over the previous hour is associated with an 0.06% (annualized: 109.2%) one-hour abnormal stock return compared to a mean of 0.03% (annualized: 54.6%). If the stock exhibits a higher intra-hour volatility, a proxy for uninformed noise trading, this relation is more pronounced and even stronger compared to stock return's relation to plain text sentiment. Research limitations/implications The authors are not able to show causation that is open to future research. It also remains an open question how emojis impact market price efficiency. Practical implications Emojis are positively related to stock returns in addition to plain text-expressed content if they are discussed heavily by retail investors in Internet boards such as Reddit. Social implications Shared emotions expressed by emojis might have an influence on how disconnected individuals make homogeneous decisions. This argument might explain our found relation of emojis and stock returns. Originality/value So, the study findings provide empirical evidence that emojis in Reddit posts convey information on future short-term stocks returns distinct from information expressed in plain text, in the case of volatile stocks, with a higher magnitude.
{"title":"Emojis and stock returns","authors":"Felix Reschke, Jan-Oliver Strych","doi":"10.1108/rbf-09-2022-0215","DOIUrl":"https://doi.org/10.1108/rbf-09-2022-0215","url":null,"abstract":"Purpose The authors explore how the sentiment expressed by emojis in comments on stocks is associated with the stocks' subsequent returns. Design/methodology/approach By applying our own analyzer, the authors find a sentiment effect of emojis on stocks returns separately to the plain text-expressed sentiment in Reddit posts about meme stocks such as Gamestop during the Covid-19 pandemic. Findings The authors document that a one-standard deviation change in emoji sentiment magnitude measured as the quantity of positive emoji sentiment posts over the previous hour is associated with an 0.06% (annualized: 109.2%) one-hour abnormal stock return compared to a mean of 0.03% (annualized: 54.6%). If the stock exhibits a higher intra-hour volatility, a proxy for uninformed noise trading, this relation is more pronounced and even stronger compared to stock return's relation to plain text sentiment. Research limitations/implications The authors are not able to show causation that is open to future research. It also remains an open question how emojis impact market price efficiency. Practical implications Emojis are positively related to stock returns in addition to plain text-expressed content if they are discussed heavily by retail investors in Internet boards such as Reddit. Social implications Shared emotions expressed by emojis might have an influence on how disconnected individuals make homogeneous decisions. This argument might explain our found relation of emojis and stock returns. Originality/value So, the study findings provide empirical evidence that emojis in Reddit posts convey information on future short-term stocks returns distinct from information expressed in plain text, in the case of volatile stocks, with a higher magnitude.","PeriodicalId":44559,"journal":{"name":"Review of Behavioral Finance","volume":"180 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135711888","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 : 2023-05-08DOI: 10.1108/rbf-09-2022-0216
C. D’Hondt, Rudy De Winne, A. Todorović
PurposeThis paper examines whether target returns act as specific goals that impact risk-taking when individuals make investment decisions.Design/methodology/approachUsing an experimental setting, the authors assign either a low or a high target return to participants and ask them to make independent investment decisions as the risk-free rate fluctuates around their target return and, for some of them, becomes negative.FindingsBuilding on cumulative prospect theory, the authors find that the prevailing reference point of participants is the target return, regardless of the level of the risk-free rate. This result still holds even when the risk-free rate is negative, suggesting that (1) the target return drives risk-taking more than does a zero-threshold and (2) negative rates are limited as a tool to stimulate appetites for risk. In a follow-up study, the authors show that these conclusions remain valid when the target return is endogenously determined.Originality/valueThe authors' original approach, which pioneers the use of target returns in both the positive and negative interest rate contexts, provides insightful results about the “reach for yield” among regular people.
{"title":"Target return as efficient driver of risk-taking","authors":"C. D’Hondt, Rudy De Winne, A. Todorović","doi":"10.1108/rbf-09-2022-0216","DOIUrl":"https://doi.org/10.1108/rbf-09-2022-0216","url":null,"abstract":"PurposeThis paper examines whether target returns act as specific goals that impact risk-taking when individuals make investment decisions.Design/methodology/approachUsing an experimental setting, the authors assign either a low or a high target return to participants and ask them to make independent investment decisions as the risk-free rate fluctuates around their target return and, for some of them, becomes negative.FindingsBuilding on cumulative prospect theory, the authors find that the prevailing reference point of participants is the target return, regardless of the level of the risk-free rate. This result still holds even when the risk-free rate is negative, suggesting that (1) the target return drives risk-taking more than does a zero-threshold and (2) negative rates are limited as a tool to stimulate appetites for risk. In a follow-up study, the authors show that these conclusions remain valid when the target return is endogenously determined.Originality/valueThe authors' original approach, which pioneers the use of target returns in both the positive and negative interest rate contexts, provides insightful results about the “reach for yield” among regular people.","PeriodicalId":44559,"journal":{"name":"Review of Behavioral Finance","volume":"149 1","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-05-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75757249","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 : 2023-04-11DOI: 10.1108/rbf-01-2023-0013
L. Nguyen, Phong Thanh Nguyen
PurposeIn this paper, the authors examine the short-term and long-term impact of general economic policy uncertainty (EPU) and crypto-specific policy uncertainty on Bitcoin’s (BTC) exchange inflows – a form of crypto investor behaviors that the authors expect to drive the cryptocurrency volatility.Design/methodology/approachThe authors use an autoregressive distributed lag (ARDL), coupled with the bounds testing approach by Pesaran et al. (2001), to analyze a weekly dataset of BTC’s exchange inflows and relevant policy uncertainty indices.FindingsThe authors observe both short-term and long-term impacts of the crypto-specific policy uncertainty on BTC’s exchange inflows, whereas the general EPU only explains these inflows in a short-term manner. In addition, the authors find exchange inflows of BTC “Granger” cause its price volatility. Furthermore, the authors document a significant and relatively persistent response of BTC volatility to shocks to its exchange inflows.Originality/valueThis study’s findings offer significant contributions to research in policy uncertainty and investor behaviors.
{"title":"Do crypto investors wait and see during policy uncertainty? An examination of the dynamic relationships between policy uncertainty and exchange inflows of Bitcoin","authors":"L. Nguyen, Phong Thanh Nguyen","doi":"10.1108/rbf-01-2023-0013","DOIUrl":"https://doi.org/10.1108/rbf-01-2023-0013","url":null,"abstract":"PurposeIn this paper, the authors examine the short-term and long-term impact of general economic policy uncertainty (EPU) and crypto-specific policy uncertainty on Bitcoin’s (BTC) exchange inflows – a form of crypto investor behaviors that the authors expect to drive the cryptocurrency volatility.Design/methodology/approachThe authors use an autoregressive distributed lag (ARDL), coupled with the bounds testing approach by Pesaran et al. (2001), to analyze a weekly dataset of BTC’s exchange inflows and relevant policy uncertainty indices.FindingsThe authors observe both short-term and long-term impacts of the crypto-specific policy uncertainty on BTC’s exchange inflows, whereas the general EPU only explains these inflows in a short-term manner. In addition, the authors find exchange inflows of BTC “Granger” cause its price volatility. Furthermore, the authors document a significant and relatively persistent response of BTC volatility to shocks to its exchange inflows.Originality/valueThis study’s findings offer significant contributions to research in policy uncertainty and investor behaviors.","PeriodicalId":44559,"journal":{"name":"Review of Behavioral Finance","volume":"43 1","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-04-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85118581","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 : 2023-04-06DOI: 10.1108/rbf-05-2022-0143
P. Grégoire, M. Dixon, I. Giroux, C. Jacques, Annie Goulet, James Eaves, S. Sévigny
PurposeOnline investment platforms offer an environment that may lead some traders into excessive behaviors akin to gambling. Over the last decade, gambling behaviors associated with the stock market have attracted the attention of many researchers but the literature on the subject remains scarce. This study aims to present the results of live interviews with a sample (N = 100) of retail investors trading online, and contrasts trading habits with gambling behaviors.Design/methodology/approachParticipants are divided in three groups according to their score on an adapted version of the Problem Gambling Severity Index (referred to as the PGSI-Trading), and their trading habits and behaviors are compared.FindingsThe authors find that traders with higher PGSI-Trading scores are more likely to display gambling-related behaviors such as trading within a short timeframe, being motivated by making money quickly and experiencing high sensations when trading.Research limitations/implicationsThe sample is small but the authors proceeded this way in order to gather some qualitative data that would be helpful to clinicians in the Province of Quebec. The questionnaire used to classify traders at risk of being gamblers (PGSI-Trading) has not been validated.Practical implicationsThe findings of this study will be helpful to clinicians who hwork with patients suffering from excessive online stock trading habits.Social implicationsClinicians observe an increasing number of patients who consult with excessive stock trading habits. This study has brought new information allowing clinicians to better understand how gambling manifests itself on the stock market.Originality/valueTo the authors’ knowledge, this study is the first to investigate the trading habits of individuals classified in terms of their score on an adapted PGSI questionnaire.
{"title":"Gambling on the stock market: the behavior of at-risk online traders","authors":"P. Grégoire, M. Dixon, I. Giroux, C. Jacques, Annie Goulet, James Eaves, S. Sévigny","doi":"10.1108/rbf-05-2022-0143","DOIUrl":"https://doi.org/10.1108/rbf-05-2022-0143","url":null,"abstract":"PurposeOnline investment platforms offer an environment that may lead some traders into excessive behaviors akin to gambling. Over the last decade, gambling behaviors associated with the stock market have attracted the attention of many researchers but the literature on the subject remains scarce. This study aims to present the results of live interviews with a sample (N = 100) of retail investors trading online, and contrasts trading habits with gambling behaviors.Design/methodology/approachParticipants are divided in three groups according to their score on an adapted version of the Problem Gambling Severity Index (referred to as the PGSI-Trading), and their trading habits and behaviors are compared.FindingsThe authors find that traders with higher PGSI-Trading scores are more likely to display gambling-related behaviors such as trading within a short timeframe, being motivated by making money quickly and experiencing high sensations when trading.Research limitations/implicationsThe sample is small but the authors proceeded this way in order to gather some qualitative data that would be helpful to clinicians in the Province of Quebec. The questionnaire used to classify traders at risk of being gamblers (PGSI-Trading) has not been validated.Practical implicationsThe findings of this study will be helpful to clinicians who hwork with patients suffering from excessive online stock trading habits.Social implicationsClinicians observe an increasing number of patients who consult with excessive stock trading habits. This study has brought new information allowing clinicians to better understand how gambling manifests itself on the stock market.Originality/valueTo the authors’ knowledge, this study is the first to investigate the trading habits of individuals classified in terms of their score on an adapted PGSI questionnaire.","PeriodicalId":44559,"journal":{"name":"Review of Behavioral Finance","volume":"45 1","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-04-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88705315","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 : 2023-03-30DOI: 10.1108/rbf-01-2023-0014
Khemaies Bougatef, Imen Nejah
PurposeThis study examines whether the Russia–Ukraine war affects herding behavior in the Moscow Exchange.Design/methodology/approachThe authors employ the daily stock closing prices of 40 firms, which constitute the MOEX Russia Index from June 16, 2021, to November 30, 2022. The period before the invasion ranges from June 16, 2021, to February 23, 2022, while the post-invasion period runs from February 24, 2022, to November 30, 2022.FindingsThe findings suggest that the Russia–Ukraine war led to the formation of herding behavior among investors in Moscow Exchange. However, this herding behavior seems to be prevalent only during market downturns.Research limitations/implicationsThe results are important for policymakers and fund managers since they help them understand behavior patterns of investors during periods of war. Given the devastating effect of herd behavior on market stability, policymakers should implement a strategy to avoid this behavior. The formation of herding behavior during the Russia–Ukraine war indicates that uncertainty and fear caused by Western sanctions lead investors to imitate others which, in turn, could lead to equity mispricing. Thus, firm managers should take into account this evidence in equity issuance decisions in order to time the market. The findings raise questions about the validity of the efficient market hypothesis during the periods of war.Originality/valueThis study represents the first attempt to explore whether the Russia–Ukraine conflict contributes to the appearance of herding behavior among investors on Moscow Exchange.
{"title":"Does Russia–Ukraine war generate herding behavior in Moscow Exchange?","authors":"Khemaies Bougatef, Imen Nejah","doi":"10.1108/rbf-01-2023-0014","DOIUrl":"https://doi.org/10.1108/rbf-01-2023-0014","url":null,"abstract":"PurposeThis study examines whether the Russia–Ukraine war affects herding behavior in the Moscow Exchange.Design/methodology/approachThe authors employ the daily stock closing prices of 40 firms, which constitute the MOEX Russia Index from June 16, 2021, to November 30, 2022. The period before the invasion ranges from June 16, 2021, to February 23, 2022, while the post-invasion period runs from February 24, 2022, to November 30, 2022.FindingsThe findings suggest that the Russia–Ukraine war led to the formation of herding behavior among investors in Moscow Exchange. However, this herding behavior seems to be prevalent only during market downturns.Research limitations/implicationsThe results are important for policymakers and fund managers since they help them understand behavior patterns of investors during periods of war. Given the devastating effect of herd behavior on market stability, policymakers should implement a strategy to avoid this behavior. The formation of herding behavior during the Russia–Ukraine war indicates that uncertainty and fear caused by Western sanctions lead investors to imitate others which, in turn, could lead to equity mispricing. Thus, firm managers should take into account this evidence in equity issuance decisions in order to time the market. The findings raise questions about the validity of the efficient market hypothesis during the periods of war.Originality/valueThis study represents the first attempt to explore whether the Russia–Ukraine conflict contributes to the appearance of herding behavior among investors on Moscow Exchange.","PeriodicalId":44559,"journal":{"name":"Review of Behavioral Finance","volume":"30 1","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-03-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84358289","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 : 2023-03-29DOI: 10.1108/rbf-12-2022-0291
S. Arzova, Ayben Koy, B. Sahin
PurposeThis study investigates the effect of unproven energy reserve news on the volatility of energy firms' stocks. Thus, investors' perception of unproven energy reserves is revealed. Additionally, the study aims to determine whether the effect of the news changes according to time and volatility level.Design/methodology/approachThe general autoregressive conditional heteroskedasticity (GARCH) and exponential generalized autoregressive conditional heteroskedasticity (EGARCH) models consist of the energy reserve exploration news in Turkey for the period 2009–2022 and the volatility of 14 energy stocks.FindingsThe results indicate energy exploration news's negative and significant effect on volatility. According to empirical results, energy stock volatility is most affected in the first ten days. Besides, the results show that the significant models of energy reserve news in low-volatility stocks are proportionally higher than in high-volatility stocks.Research limitations/implicationsOnly unproved reserve news is included in the analysis, as sufficient confirmed reserves could not be reached during the sampling period. Further studies can compare proven and unproved reserve news effects. Additionally, a similar analysis can be conducted between Turkey and another country with a similar socio-economic character to examine different investor behaviors.Practical implicationsThis research includes indications on managing investors' reactions to unproven energy reserve news.Originality/valueThis study contributes to the literature by analyzing unproven reserves. Contrary to previous studies, examining stock volatility also makes the study unique.
{"title":"The impact of unproved reserve news on the energy stock volatility: an empirical investigation on Turkey","authors":"S. Arzova, Ayben Koy, B. Sahin","doi":"10.1108/rbf-12-2022-0291","DOIUrl":"https://doi.org/10.1108/rbf-12-2022-0291","url":null,"abstract":"PurposeThis study investigates the effect of unproven energy reserve news on the volatility of energy firms' stocks. Thus, investors' perception of unproven energy reserves is revealed. Additionally, the study aims to determine whether the effect of the news changes according to time and volatility level.Design/methodology/approachThe general autoregressive conditional heteroskedasticity (GARCH) and exponential generalized autoregressive conditional heteroskedasticity (EGARCH) models consist of the energy reserve exploration news in Turkey for the period 2009–2022 and the volatility of 14 energy stocks.FindingsThe results indicate energy exploration news's negative and significant effect on volatility. According to empirical results, energy stock volatility is most affected in the first ten days. Besides, the results show that the significant models of energy reserve news in low-volatility stocks are proportionally higher than in high-volatility stocks.Research limitations/implicationsOnly unproved reserve news is included in the analysis, as sufficient confirmed reserves could not be reached during the sampling period. Further studies can compare proven and unproved reserve news effects. Additionally, a similar analysis can be conducted between Turkey and another country with a similar socio-economic character to examine different investor behaviors.Practical implicationsThis research includes indications on managing investors' reactions to unproven energy reserve news.Originality/valueThis study contributes to the literature by analyzing unproven reserves. Contrary to previous studies, examining stock volatility also makes the study unique.","PeriodicalId":44559,"journal":{"name":"Review of Behavioral Finance","volume":"27 1","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72806002","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 : 2023-03-28DOI: 10.1108/rbf-09-2022-0214
Hardeep Singh Mundi
PurposeThe paper aims to examine the effect of CEOs' social networks on capital structure complexity (CSC) and firm performance.Design/methodology/approachOrdinary Least Squares regression (OLS) and Generalized method of moments (GMM) regression results estimate the effect of CEOs' (Chief executive officer) social networks on capital structure complexity and firm performance. The number of sources of capital (NSC) and concentration ratio estimate the capital structure complexity for the sample firms.FindingsThe results show that CEOs' social networks significantly influence CSC. We suggest that the CEOs' social networks encourage them to make more complex capital structure decisions. This behavior deteriorates firm performance.Research limitations/implicationsThere is a lack of systematic conceptual reason for measuring CEO social network. Future research should use other measures of the social network to estimate the relation of the CEO's social network with CSC and firm performance.Practical implicationsThe findings support the managerial power approach and social network theory that the observable characteristics of CEOs influence CSC. The results are robust for an alternative explanation.Originality/valueBy investigating the impact of the influence of CEOs' social networks on CSC and performance, the authors extend research on strategic leadership and capital structure and firm performance.
{"title":"CEO social network, capital structure complexity and firm performance","authors":"Hardeep Singh Mundi","doi":"10.1108/rbf-09-2022-0214","DOIUrl":"https://doi.org/10.1108/rbf-09-2022-0214","url":null,"abstract":"PurposeThe paper aims to examine the effect of CEOs' social networks on capital structure complexity (CSC) and firm performance.Design/methodology/approachOrdinary Least Squares regression (OLS) and Generalized method of moments (GMM) regression results estimate the effect of CEOs' (Chief executive officer) social networks on capital structure complexity and firm performance. The number of sources of capital (NSC) and concentration ratio estimate the capital structure complexity for the sample firms.FindingsThe results show that CEOs' social networks significantly influence CSC. We suggest that the CEOs' social networks encourage them to make more complex capital structure decisions. This behavior deteriorates firm performance.Research limitations/implicationsThere is a lack of systematic conceptual reason for measuring CEO social network. Future research should use other measures of the social network to estimate the relation of the CEO's social network with CSC and firm performance.Practical implicationsThe findings support the managerial power approach and social network theory that the observable characteristics of CEOs influence CSC. The results are robust for an alternative explanation.Originality/valueBy investigating the impact of the influence of CEOs' social networks on CSC and performance, the authors extend research on strategic leadership and capital structure and firm performance.","PeriodicalId":44559,"journal":{"name":"Review of Behavioral Finance","volume":"45 1","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-03-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78720761","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 : 2023-01-10DOI: 10.1108/rbf-02-2022-0068
Mehdi Mili, Asma Yahiya Al Amoodi, H. Bawazir
PurposeThis study aims to investigate the asymmetric impact of daily announcements regarding COVID-19 on investor sentiment in the stock market.Design/methodology/approachThis study uses a Non-Linear Autoregressive Distribution Lag (NARDL) model that relies on positive and negative partial sum decompositions of the Coronavirus indicators. Five investor sentiments had been used and the analysis is conducted on the full sample period from 24th February 2020 to 25th March 2021.FindingsThe results show that new cases have a greater impact on investor sentiment compared to daily announcements of new deaths related to COVID-19. In addition to revealing a significant impact of new COVID-19 new cases and new death announcements on a daily basis on investor sentiment over the short- and long-term, this paper also highlights the nonlinearity and asymmetry of this relationship in the short and long run. Investors' sentiments are more affected by negative news regarding Covid 19 than positive news.Originality/valueFinancial markets have been severely affected by COVID-19 pandemic. This study is the first to measure the extent of reaction of investors to positive and negative announcements of COVID-19. Interestingly, this study examines the asymmetric effect of daily announcements on new cases and new deaths by COVID-19 on investor sentiments and derive many implications for portfolio managers.
{"title":"The asymmetric effect of COVID-19 on investor sentiment: evidence from NARDL model","authors":"Mehdi Mili, Asma Yahiya Al Amoodi, H. Bawazir","doi":"10.1108/rbf-02-2022-0068","DOIUrl":"https://doi.org/10.1108/rbf-02-2022-0068","url":null,"abstract":"PurposeThis study aims to investigate the asymmetric impact of daily announcements regarding COVID-19 on investor sentiment in the stock market.Design/methodology/approachThis study uses a Non-Linear Autoregressive Distribution Lag (NARDL) model that relies on positive and negative partial sum decompositions of the Coronavirus indicators. Five investor sentiments had been used and the analysis is conducted on the full sample period from 24th February 2020 to 25th March 2021.FindingsThe results show that new cases have a greater impact on investor sentiment compared to daily announcements of new deaths related to COVID-19. In addition to revealing a significant impact of new COVID-19 new cases and new death announcements on a daily basis on investor sentiment over the short- and long-term, this paper also highlights the nonlinearity and asymmetry of this relationship in the short and long run. Investors' sentiments are more affected by negative news regarding Covid 19 than positive news.Originality/valueFinancial markets have been severely affected by COVID-19 pandemic. This study is the first to measure the extent of reaction of investors to positive and negative announcements of COVID-19. Interestingly, this study examines the asymmetric effect of daily announcements on new cases and new deaths by COVID-19 on investor sentiments and derive many implications for portfolio managers.","PeriodicalId":44559,"journal":{"name":"Review of Behavioral Finance","volume":"61 1","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80592193","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 : 2023-01-03DOI: 10.1108/rbf-06-2022-0151
Merve G. Cevheroğlu-Açar, Cenk C. Karahan
Purpose This study empirically documents the effect of ambiguity on stock returns in a major emerging market along with the ambiguity attitudes under various market conditions. Design/methodology/approach Ambiguity is measured as the volatility of return probability distributions extracted from high frequency intraday data via a method developed by Brenner and Izhakian (2018). The impact of ambiguity is then tested on stock market returns. Findings The results show that ambiguity is a priced factor in Turkish stock market with a positive premium that is distinct from risk premium. In contrast with the findings in the US market, the investors in Turkey show an increasing level of ambiguity aversion as expected probability of favorable returns deviate from the mean value. The investors are effectively ambiguity neutral in lateral markets. The results are robust to testing with higher moments, sentiment measures and under recession conditions. Originality/value This study contributes to empirically documenting ambiguity and ambiguity aversion in a major emerging market along with the opportunity to observe international differences in ambiguity attitudes.
{"title":"Ambiguity and asset prices: a closer look in an emerging market","authors":"Merve G. Cevheroğlu-Açar, Cenk C. Karahan","doi":"10.1108/rbf-06-2022-0151","DOIUrl":"https://doi.org/10.1108/rbf-06-2022-0151","url":null,"abstract":"Purpose This study empirically documents the effect of ambiguity on stock returns in a major emerging market along with the ambiguity attitudes under various market conditions. Design/methodology/approach Ambiguity is measured as the volatility of return probability distributions extracted from high frequency intraday data via a method developed by Brenner and Izhakian (2018). The impact of ambiguity is then tested on stock market returns. Findings The results show that ambiguity is a priced factor in Turkish stock market with a positive premium that is distinct from risk premium. In contrast with the findings in the US market, the investors in Turkey show an increasing level of ambiguity aversion as expected probability of favorable returns deviate from the mean value. The investors are effectively ambiguity neutral in lateral markets. The results are robust to testing with higher moments, sentiment measures and under recession conditions. Originality/value This study contributes to empirically documenting ambiguity and ambiguity aversion in a major emerging market along with the opportunity to observe international differences in ambiguity attitudes.","PeriodicalId":44559,"journal":{"name":"Review of Behavioral Finance","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-01-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135604493","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：