Pub Date : 2024-07-11DOI: 10.1108/jefas-08-2023-0243
V. Shunmugasundaram, Aashna Sinha
PurposeThe purpose of this study is to investigate the impact of behavioral biases on investment decisions through a serial mediation of overconfidence and disposition effects.Design/methodology/approachThe authors assess the behavioral biases affecting the investment decisions of life insurance policyholders through the serial mediation of overconfidence and disposition effects using a structured questionnaire. The study included 501 life insurance policyholders who were selected using a snowball sampling technique.FindingsThe results of this study revealed that behavioral biases influence the investment decisions of life insurance policyholders. The results also support the serial mediation model, where behavioral biases influence the investment decisions of life insurance policyholders via overconfidence and disposition effects.Research limitations/implicationsThis study makes a theoretical contribution to the field of behavioral finance by exploring the influences of behavioral biases on investment decisions. It also introduces overconfidence and disposition effects as serial mediators between behavioral biases and investment decisions. The study will be helpful for researchers, academicians and policymakers in the development of a more comprehensive model in the area of behavioral finance and in raising awareness regarding those biases among policyholders in order to improve their investment strategy.Originality/valueThis study has extended the ongoing simple mediation model by integrating overconfidence and disposition effects in a serial mediation model between behavioral biases and investment decisions. The study will contribute to the area of behavioral finance, as it is the first time this particular study has been conducted according to the authors’ knowledge.
{"title":"The impact of behavioral biases on investment decisions: a serial mediation analysis","authors":"V. Shunmugasundaram, Aashna Sinha","doi":"10.1108/jefas-08-2023-0243","DOIUrl":"https://doi.org/10.1108/jefas-08-2023-0243","url":null,"abstract":"PurposeThe purpose of this study is to investigate the impact of behavioral biases on investment decisions through a serial mediation of overconfidence and disposition effects.Design/methodology/approachThe authors assess the behavioral biases affecting the investment decisions of life insurance policyholders through the serial mediation of overconfidence and disposition effects using a structured questionnaire. The study included 501 life insurance policyholders who were selected using a snowball sampling technique.FindingsThe results of this study revealed that behavioral biases influence the investment decisions of life insurance policyholders. The results also support the serial mediation model, where behavioral biases influence the investment decisions of life insurance policyholders via overconfidence and disposition effects.Research limitations/implicationsThis study makes a theoretical contribution to the field of behavioral finance by exploring the influences of behavioral biases on investment decisions. It also introduces overconfidence and disposition effects as serial mediators between behavioral biases and investment decisions. The study will be helpful for researchers, academicians and policymakers in the development of a more comprehensive model in the area of behavioral finance and in raising awareness regarding those biases among policyholders in order to improve their investment strategy.Originality/valueThis study has extended the ongoing simple mediation model by integrating overconfidence and disposition effects in a serial mediation model between behavioral biases and investment decisions. The study will contribute to the area of behavioral finance, as it is the first time this particular study has been conducted according to the authors’ knowledge.","PeriodicalId":507377,"journal":{"name":"Journal of Economics, Finance and Administrative Science","volume":"124 10","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141656847","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 : 2023-12-26DOI: 10.1108/jefas-09-2022-0214
J. A. Pedraza-Rodríguez, Martha Yadira García-Briones, César Mora-Márquez
PurposeThis article aims to explore the concept of chain value of the public port system in Ecuador from the perspective of importing/exporting companies, analyzing how perceived value in the use of port services affects customer satisfaction and the intermediate links of the influence of trust and commitment on customer loyalty.Design/methodology/approachRelying on a survey of 634 Ecuadorian companies with experience in international trade as port users and a theoretical framework well-established in the literature on consumer behavior, the empirical study found evidence of a positive and significant relationship with the knowledge of chain effects.FindingsThe findings confirm the chain effect and reveal ways to maintain an ongoing satisfactory, trust and committed relationship with users, thereby ultimately gaining and maintaining their loyalty. The conclusions suggest how this postulate can help to close the gap referred to the effective management of port services, and point out that port managers should be concerned with a continuous in-depth understanding of the perceived value and its chain effects.Originality/valueThe authors add evidence of the use of the postulate of the chain of effects on these dimensions, whose applicability is very well established, tested and consensual for the doctrine in industrial marketing. In contrast, it is scarcely present in the port relationship with its users.
{"title":"Exploring the importance of the perceived value of port users: evidence from the public port system in Ecuador","authors":"J. A. Pedraza-Rodríguez, Martha Yadira García-Briones, César Mora-Márquez","doi":"10.1108/jefas-09-2022-0214","DOIUrl":"https://doi.org/10.1108/jefas-09-2022-0214","url":null,"abstract":"PurposeThis article aims to explore the concept of chain value of the public port system in Ecuador from the perspective of importing/exporting companies, analyzing how perceived value in the use of port services affects customer satisfaction and the intermediate links of the influence of trust and commitment on customer loyalty.Design/methodology/approachRelying on a survey of 634 Ecuadorian companies with experience in international trade as port users and a theoretical framework well-established in the literature on consumer behavior, the empirical study found evidence of a positive and significant relationship with the knowledge of chain effects.FindingsThe findings confirm the chain effect and reveal ways to maintain an ongoing satisfactory, trust and committed relationship with users, thereby ultimately gaining and maintaining their loyalty. The conclusions suggest how this postulate can help to close the gap referred to the effective management of port services, and point out that port managers should be concerned with a continuous in-depth understanding of the perceived value and its chain effects.Originality/valueThe authors add evidence of the use of the postulate of the chain of effects on these dimensions, whose applicability is very well established, tested and consensual for the doctrine in industrial marketing. In contrast, it is scarcely present in the port relationship with its users.","PeriodicalId":507377,"journal":{"name":"Journal of Economics, Finance and Administrative Science","volume":"24 7","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139157094","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 : 2023-11-20DOI: 10.1108/jefas-05-2021-0069
Devesh Singh
PurposeThis study aims to examine foreign direct investment (FDI) factors and develops a rational framework for FDI inflow in Western European countries such as France, Germany, the Netherlands, Switzerland, Belgium and Austria.Design/methodology/approachData for this study were collected from the World development indicators (WDI) database from 1995 to 2018. Factors such as economic growth, pollution, trade, domestic capital investment, gross value-added and the financial stability of the country that influence FDI decisions were selected through empirical literature. A framework was developed using interpretable machine learning (IML), decision trees and three-stage least squares simultaneous equation methods for FDI inflow in Western Europe.FindingsThe findings of this study show that there is a difference between the most important and trusted factors for FDI inflow. Additionally, this study shows that machine learning (ML) models can perform better than conventional linear regression models.Research limitations/implicationsThis research has several limitations. Ideally, classification accuracies should be higher, and the current scope of this research is limited to examining the performance of FDI determinants within Western Europe.Practical implicationsThrough this framework, the national government can understand how investors make their capital allocation decisions in their country. The framework developed in this study can help policymakers better understand the rationality of FDI inflows.Originality/valueAn IML framework has not been developed in prior studies to analyze FDI inflows. Additionally, the author demonstrates the applicability of the IML framework for estimating FDI inflows in Western Europe.
{"title":"Foreign direct investment and local interpretable model-agnostic explanations: a rational framework for FDI decision making","authors":"Devesh Singh","doi":"10.1108/jefas-05-2021-0069","DOIUrl":"https://doi.org/10.1108/jefas-05-2021-0069","url":null,"abstract":"PurposeThis study aims to examine foreign direct investment (FDI) factors and develops a rational framework for FDI inflow in Western European countries such as France, Germany, the Netherlands, Switzerland, Belgium and Austria.Design/methodology/approachData for this study were collected from the World development indicators (WDI) database from 1995 to 2018. Factors such as economic growth, pollution, trade, domestic capital investment, gross value-added and the financial stability of the country that influence FDI decisions were selected through empirical literature. A framework was developed using interpretable machine learning (IML), decision trees and three-stage least squares simultaneous equation methods for FDI inflow in Western Europe.FindingsThe findings of this study show that there is a difference between the most important and trusted factors for FDI inflow. Additionally, this study shows that machine learning (ML) models can perform better than conventional linear regression models.Research limitations/implicationsThis research has several limitations. Ideally, classification accuracies should be higher, and the current scope of this research is limited to examining the performance of FDI determinants within Western Europe.Practical implicationsThrough this framework, the national government can understand how investors make their capital allocation decisions in their country. The framework developed in this study can help policymakers better understand the rationality of FDI inflows.Originality/valueAn IML framework has not been developed in prior studies to analyze FDI inflows. Additionally, the author demonstrates the applicability of the IML framework for estimating FDI inflows in Western Europe.","PeriodicalId":507377,"journal":{"name":"Journal of Economics, Finance and Administrative Science","volume":"129 8","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139256361","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 : 2023-11-20DOI: 10.1108/jefas-08-2023-0230
S. Mongrut, Vivian Cruz, Daniela Pacussich
Purpose The purpose of this paper is to determine the impact of private and public initiatives (financial literacy, entrepreneurship, remote work and government aid) on individual job loss and decrease in income during the COVID-19 pandemic in Peru.Design/methodology/approach The authors used an unbalanced panel data analysis with the National Household Survey for 2019–2020. The hypotheses are tested with a probit panel data model since the dependent variables are binary.FindingsThe study findings indicate that financial preparedness reduced the probability of having a decrease in income, but only to informal workers in metropolitan Lima. Furthermore, entrepreneurship helped mainly female informal workers to reduce their probability of becoming unemployed in metropolitan Lima. Besides, the implementation of remote work as a substitute of face-to-face work was not enough to avoid the decrease in income in the case of informal workers and it was only effective to avoid unemployment in the case of formal workers in metropolitan Lima. Finally, public aid proved to be instrumental in mitigating the decrease in income, but only to informal workers in Metropolitan Lima.Research limitations/implications The study results only apply for the first year of the pandemic.Practical implicationsPolicymakers should focus on increasing the financial preparedness of informal workers, especially in provinces.Social implicationsPolicymakers must expand unemployment benefits, and design public aid programs targeting informal workers in provinces.Originality/valueThis is the first study that analyses the impact of private and public initiatives on the decrease in income and unemployment situation of Peruvian individuals during the outbreak of the COVID-19 pandemic.
{"title":"Impact of private and public initiatives on individuals' employment and income during the COVID-19 pandemic: evidence from Peru","authors":"S. Mongrut, Vivian Cruz, Daniela Pacussich","doi":"10.1108/jefas-08-2023-0230","DOIUrl":"https://doi.org/10.1108/jefas-08-2023-0230","url":null,"abstract":"Purpose The purpose of this paper is to determine the impact of private and public initiatives (financial literacy, entrepreneurship, remote work and government aid) on individual job loss and decrease in income during the COVID-19 pandemic in Peru.Design/methodology/approach The authors used an unbalanced panel data analysis with the National Household Survey for 2019–2020. The hypotheses are tested with a probit panel data model since the dependent variables are binary.FindingsThe study findings indicate that financial preparedness reduced the probability of having a decrease in income, but only to informal workers in metropolitan Lima. Furthermore, entrepreneurship helped mainly female informal workers to reduce their probability of becoming unemployed in metropolitan Lima. Besides, the implementation of remote work as a substitute of face-to-face work was not enough to avoid the decrease in income in the case of informal workers and it was only effective to avoid unemployment in the case of formal workers in metropolitan Lima. Finally, public aid proved to be instrumental in mitigating the decrease in income, but only to informal workers in Metropolitan Lima.Research limitations/implications The study results only apply for the first year of the pandemic.Practical implicationsPolicymakers should focus on increasing the financial preparedness of informal workers, especially in provinces.Social implicationsPolicymakers must expand unemployment benefits, and design public aid programs targeting informal workers in provinces.Originality/valueThis is the first study that analyses the impact of private and public initiatives on the decrease in income and unemployment situation of Peruvian individuals during the outbreak of the COVID-19 pandemic.","PeriodicalId":507377,"journal":{"name":"Journal of Economics, Finance and Administrative Science","volume":"291 3","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139255546","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}
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