Search results for "Behavioral Finance"
showing 10 items of 13 documents
Noise traders and smart money: Evidence from online searches
2019
International audience; Traditional finance theory considers that the impact of noise traders' attention on asset prices is offset by attention from smart investors. This paper uses online search data to study the influence of noise traders and smart investors on stock returns and volatility. Adopting an original approach, we construct a proxy for smart investor attention based on investors' online search behavior provided by Wikipedia Page Traffic. We combine this new measure with a standard measure of noise traders' attention as proxied by Google Search Volume Index. We show for a sample of 87 French firms over the period 2008–2018 that only noise traders' attention influences stock retur…
Why is equity order flow so persistent?
2015
Abstract Order flow in equity markets is remarkably persistent in the sense that order signs (to buy or sell) are positively autocorrelated out to time lags of tens of thousands of orders, corresponding to many days. Two possible explanations are herding, corresponding to positive correlation in the behavior of different investors, or order splitting, corresponding to positive autocorrelation in the behavior of single investors. We investigate this using order flow data from the London Stock Exchange for which we have membership identifiers. By formulating models for herding and order splitting, as well as models for brokerage choice, we are able to overcome the distortion introduced by bro…
The role of «perceived loss» aversion on credit screening: an experiment
2013
A major characteristic of credit markets is information asymmetry.To combat its problems, as credit rationing, principals can use a menu of contracts to screen clients with different risk level. We conduct a laboratory experiment to address an important question for such settings —does the framing of the offered menu of contracts interfere with the self-selection mechanism? The answer is yes. We find subjects' choices shift when the same (positive) outcomes of the same menu of contracts are presented in two different frames. Subjects exhibit loss aversion in their perception of the positive outcomes below the reference point, and self-selection fails to occur. Uno de los mayores problemas a…
Clusters of Traders in Financial Markets
2020
In this chapter we discuss Aoki’s work on the description of clusters of economic agents acting in a market. Specifically, we briefly discuss his work on the Ewens distribution and its application in a model of stock market with heterogeneous agents. We then review recent empirical analyses on the heterogeneity of financial market participants and make a working hypothesis for an empirical study on the distribution of the number of clusters of market participants in a real stock market monitored with a resolution down to the shadowed identity of market participants.
Eco-Anxiety, Connectedness to Nature & Green Equity Investments
2023
International audience; Drawing on a survey of 671 French individual investors, we document for the first time the connection between emotions towards the environment and investment in green funds. Both eco-anxiety and connectedness to nature have a significant impact on deciding to invest in green funds, but, interestingly, do not exert any influence on the amount invested. Hence, investing in green funds seems to be a way to buy a good conscience towards the environment, but the good deed ends there since the amount itself is not linked to environmentally related emotions.
Aprender finanzas conductuales experimentando
2021
[EN] In an ever-changing economic and business environment, it is especially interesting that students learn, and experiment with their own decision-making, about behavioral finance. This experience will provide them with a better understanding of the economic agents’ behavior in different real- life situations (auctions, pricing, negotiations, investing and financing decisions). By experimenting, they acquire solid knowledge about biases, rational and irrational behaviors, and motivations that govern economic life. Controlled economic experiments in the classroom, a gamification learning methodology, allow students to better understand complex economic-financial concepts such as the herdin…
Development and validation of the Perceived Investment Value (PIV) scale
2013
This study aims to develop a complementary and more comprehensive measurement to assess the nature of investment value affecting consumers’ investment behavior. Recent research suggests that consumers may desire and obtain certain outcomes from investments that have not been anticipated in mainstream finance and economics literature. These benefits might be hedonistic or altruistic, self-expressive or emotional and experiential. Yet, while an increasing amount of attention has been paid to this topic, little effort has been made to develop an appropriate measurement scale for the subjective consumer perceptions of investments. To address this gap in the literature, this study introduces the…
CORPORATE GOVERNANCE AND BEHAVIORAL FINANCE: FROM MANAGERIAL BIASES TO IRRATIONAL INVESTORS
2014
Corporate governance is concerned about the ways in which investors assure themselves of getting a return on their investment, on one hand, and is focus on motivating managers to increase the company profit, on the other hand (the agency theory). Corporate governance emerges from the interaction between managers and investors. Managers are often more likely to invest the extra cash-flow or profit than to return it to shareholders. But, both managers and investors are lees then fully rational. Sometimes their behavior is based on cognitive psychology. In this context, we are dealing with two problems: managerial biases and irrational investors. Managerial biases focus on the illusion of opti…
Behavioral aspects of the European carbon market
2016
TEMA: El tema de esta tesis doctoral está basado en el campo de las finanzas del comportamiento en donde se proponen teorías basados en la psicología para explicar las anomalías del mercado de valores. Dentro de las finanzas del comportamiento, se supone que la estructura de la información y las características de los participantes del mercado influyen sistemáticamente en las decisiones de inversión de los individuos, así como en los resultados del mercado. Así pues, durante todo el estudio se analizaran ciertos comportamientos psicológicos que podrían afectar al comportamiento del mercado del carbono europeo y que de demostrarse su presencia alteraría la racionalidad de dicho mercado finan…