Behavioural Finance and Investment Decisions: Does Behavioral Bias Matter?

Nkukpornu, Etse; Gyimah, Prince; Sakyiwaa, Linda

doi:10.5539/ibr.v13n11p65

Cited by 8 publications

(3 citation statements)

References 40 publications

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“…For the first time, Burrell (1951) combined psychology and finance to do financial decision making research, and is regarded as the pioneer of behavioral finance. The most important psychological deviation in behavioral finance is overconfidence (Nkukpornu et al, 2020). Executives have the right to speak in important decisions of the firm and can decide major activities, such as investment, financing, mergers and acquisitions.…”

Section: Executive Overconfidence and The Quality Of Carbon Information Disclosurementioning

confidence: 99%

Government Regulation, Executive Overconfidence, and Carbon Information Disclosure: Evidence From China

et al. 2021

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Climate change has put countries around the world under great pressure to reduce greenhouse gas emissions. Chinese government has proposed that China will strive to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060. A low-carbon lifestyle is becoming a new trend in China. Therefore, the products of firms that actively respond to climate change are more popular for consumers in China. In the Internet era, the carbon information disclosed by firms has become an important way for consumers to understand the behavior of firms in responding to climate change. In the existing literature on the influencing factors of carbon information disclosure, the psychological factors of executives are seldom investigated. Using a sample of Chinese listed firms in low-carbon pilot provinces and cities during the period of 2015–2019, this study explores the influence of government regulation and executive overconfidence on the quality of carbon information disclosure. The results show that government regulation has a significantly positive impact on the quality of carbon information disclosure. The results also reveal that executive overconfidence negatively affects the quality of carbon information disclosure. Moreover, executive overconfidence negatively moderates the relationship between government regulation and the quality of carbon information disclosure. Our findings make a significant contribution to the role of executive’s psychological factors in firm’s behaviors and provide new insights and policy implications for government, firms, consumers, and other stakeholders.

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Section: Executive Overconfidence and The Quality Of Carbon Information Disclosurementioning

confidence: 99%

Government Regulation, Executive Overconfidence, and Carbon Information Disclosure: Evidence From China

et al. 2021

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“…Almansour (2017) The decisions related to investments and how these are impacted by factors which are psychological in nature and how these inturn affect the risk that an investor is willing to take up in his investment is studied by conducting a primary research in Saudi. Nkukpornu et al (2020) The biases that an investor might have be it in terms of behaviour or others tend to impact the decisions that are taken with respect to the investments. Regression model is used to determine the impact the biases have on the decisions.…”

Section: International Journal Of Scientific Research In Engineering ...mentioning

confidence: 99%

Behavioural Finance and Investment Decision Making

VAISHNAVI

2023

IJSREM

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The study has been undertaken to critically examine if behaviour and biases of an individual investor have any impact on the selection of alternatives that are available to them in terms of the investments that they make. A brief analysis of the various theories available in terms of the above topic are also examined for their validity. The conclusion drawn based on the reviews of published papers is that behaviour, biases affect decision making and as such an investor has to be mindful of these biases and make sure that he doesn’t lose out on opportunities because of this.

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“…Moreover, one of the decisions of the CEO's authority is carbon information disclosure. CEO characteristics can affect his decisions, and the most significant psychological deviation in behavioral finance is managerial overconfidence (Nkukpornu et al 2020). Overconfident CEOs overestimate the total amount of potential company's resources, and their ability to deal with the problem.…”

Section: Ceo Overconfidence and Climate Change Disclosurementioning

confidence: 99%

Climate Change Risks Disclosure: Do Business Strategy and Management Characteristics Matter?

Aldoseri,

Albaz

2023

IJFS

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This research aims to broaden the understanding of the determinants of climate change disclosure, where the study analyzes the impact of corporate business strategy and Chief Executive Officer (CEO) overconfidence on the level of climate change disclosure. The study followed a mixed-methods approach that combines quantitative and qualitative techniques to comprehensively examine the relationships used by the content analysis method to analyze the annual reports of a sample of Saudi companies for the period from 2019 to 2022 to measure the level of disclosure of practices related to climate change. The results of the study show that the companies that tend to adopt the initiative strategy provide more information about climate change than the defending companies do, while the CEO’s overconfidence does not affect the level of climate change disclosure. The results of the study indicate that the nature of the strategic direction adopted by the company is more important in determining the motives for disclosing climate change information than the personal characteristics of management.

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Behavioural Finance and Investment Decisions: Does Behavioral Bias Matter?

Cited by 8 publications

References 40 publications

Government Regulation, Executive Overconfidence, and Carbon Information Disclosure: Evidence From China

Government Regulation, Executive Overconfidence, and Carbon Information Disclosure: Evidence From China

Behavioural Finance and Investment Decision Making

Climate Change Risks Disclosure: Do Business Strategy and Management Characteristics Matter?

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