Journal of Behavioral and Experimental Finance最新文献

This study introduces a novel bidirectional ripple effect method to identify the risky center, hedging center, and duration of ripple effects. This method is used to examine the static and dynamic ripple effects among NFTs using idiosyncratic volatility measures. The findings indicate that, overall, correlations and bidirectional ripple effects among NFTs are prominent over the sample period. Only a few NFTs are significant ripple centers. Decentraland is a significant risky center, while CryptoVoxels serves as a reliable hedging center. The outcomes of rolling window tests and durations reveal that the central role of NFTs varies over time. The findings also show that ripple effects have significant durations. These conclusions hold considerable importance for NFT investors in making investment choices and managing risks.

SoJump.com (wjx.cn; in short: SoJump) is a survey company that allows researchers to build and deploy inexpensive online surveys in China. Here we evaluate SoJump’s data quality and similarity to the national benchmark. In the first study, we compare SoJump’s performance in China to MTurk’s performance against national benchmarks in the United States and India. In the second study, we compare three Chinese platforms in two-wave panel studies. We conducted the panels on SoJump, Credamo (SoJump’s major competitor), and Cint (national benchmark). We included attention and comprehension checks, economic games, cognitive tasks, and a framing experiment. We find that SoJump’s sample is younger, better educated, more urban, higher-income, and more female than Cint, similar to MTurk in the U.S. and India. Compared to Credamo, SoJump is more similar to Cint both for data quality and behavior. We conclude that SoJump is appropriate to inexpensively access nationally diverse samples in China.

An experimental study with a sample (N = 213, 49.8% male, 18-year-old or above) indicates that investment performance measures based on drawdown duration can capture investors’ preference when other investment measures focusing on risk-adjusted returns such as the Sharpe ratio fail to. Based on the result, the prevention-focused investors are found to be more sensitive to, and easily affected by the number of drawdown days than the promotion-focused investors. Performance measures based on drawdown duration can supplement traditional performance measures to capture investors’ preference.

While ESG is a relatively recent concept, the traditional Japanese business philosophy of Sanpo-yoshi, which prioritizes harmonious relationships with stakeholders over profitability, has been deeply ingrained in Japan's corporate culture for more than three centuries and has contributed to the longevity of Japanese businesses. Despite the lasting impact of Sanpo-yoshi on Japanese corporate culture and its similarities to the ESG framework, there is a notable absence of literature examining its influence on the ESG performance of Japanese companies. With a sample of Japanese listed companies from 2001 to 2018, this study reveals that top management born in regions heavily influenced by Sanpo-yoshi are more likely to exhibit better ESG performance. The importance of national culture in elucidating the variations observed in ESG performance is highlighted by our findings, which carry significant policy implications.

The main motivation of this study is the absence of consolidated measures to evaluate individuals' perceptions of financial freedom. So, this study has the objective of constructing and validating a Financial Freedom Perception Scale (FFPS). Furthermore, it seeks to provide the first evidence for differences in the perception of financial freedom according to gender, age, race and formal education. The research was developed by two main phases. The qualitative phase consisted of interviews, expert validation, and pre-test used to define the scale and the construction of the items. In the quantitative phase, two samples were collected: one with 1020 cases for exploratory analysis and another of 2293 respondents for confirmatory validation. The tests validated the FFPS as a one-dimensional scale consisting of nine items assessing the individual's financial freedom perception. We also present an application methodology for FFPS. We identified that a significant portion of the population perceives itself as financially free, but this perception is quite distinct among citizens of different profiles. The FFPS can be useful for academics, researchers, public managers, and financial agents. It can also indicate the results of public policies on financial inclusion, income transfer, and financial literacy.

Being truthful in financial decision-making often implies giving up higher monetary rewards associated with acting dishonestly. Is this trade-off affected by acute stress? We ran an experimental study to answer this question. Using three separate tasks to measure honesty, we examined whether decision-making in this context is influenced by a) the intrinsic value that subjects assign to honesty, b) the size of earnings achievable dishonestly, and c) by being acutely stressed (vs. in a neutral state) when making these decisions. Our main results show that subjects’ stated preference for honesty in general, the magnitude of financial rewards, and their interaction predict honest decision-making. However, their effects are immune to acute stress, which did not significantly alter honest decision-making. This finding is important when one considers that many financial decisions are taken by stressed managers and that there are significant costs associated with implementing ethical policies within corporations.

Financial advice can be valuable during periods of economic uncertainty but measuring this value can be difficult. Using a nationally representative dataset of U.S. households during the Great Recession, we compare the net worth of households that retained a comprehensive financial adviser, a specialized financial adviser, or no financial adviser. A difference-in- difference analysis reveals that maintaining a relationship with a comprehensive financial adviser is associated with higher household net worth, relative to households with inconsistent relationships with advisers, or relationships in which only specified services are sought. Overall, our findings suggest that consumers benefit most when they make the financial decision to consistently work with a financial adviser from whom they seek comprehensive services.

Despite being proclaimed a “trust-free” technology, the link between blockchain and interpersonal trust remains understudied. By considering one of the most prominent use-cases of blockchain - smart contracts, we argue that the non-punitive nature of smart contracts may facilitate trustworthy behavior in human interaction by encouraging trustees to view themselves as internally motivated cooperators and to honor the trustor’s move that exceeds the encoded response. We test this argument through an online experiment in which the hallmark property of smart contracts—automated enforcement—is exploited. The results show that trustees in the experimental treatment return ten percentage points more than their counterparts in the trust treatment, thereby exhibiting a more trustworthy behavior. This experimental evidence shows that the presence of blockchain technology does not crowd out all properties of trusting behavior from human interactions.

This paper focuses on why momentum expresses different dynamics based on complex social networks. We construct an epidemiological information transmission model under the assumption of complex investor networks. We consider two kinds of networks with different degree distributions: uniform distribution and power-law distribution, and then we discuss the scenarios when the networks are assortative or disassortative. We find that the degree distribution and the degree correlation affect the momentum dynamics. In power-law networks, the assortative network exhibits a lower information diffusion rate in the short term but higher in the long term compared to the disassortative network. In contrast, the disassortative network has a higher information diffusion rate than the assortative network in uniform networks. In power-law networks, network assortativity exerts a significant influence on profit, whereas, in uniform networks, it has minimal impact on profit.

We study gender differences in stock market participation and financial resilience, appropriately controlling for financial literacy, as suggested by Almenberg and Dreber (2015). Financial literacy is very difficult to measure accurately, and our proxies generally contain a random error that spills over to other correlated variables, such as gender. Our main results show that after addressing measurement error with the instrumental variable approach proposed by Gillen et al. (2019), the gender gap in financial resilience is substantially reduced and becomes statistically indistinguishable from zero. This evidence suggests that financial literacy surveys should be carefully designed to reduce measurement error, for example by including multiple elicitations of the same item and providing a panel component.