Institutional investors vs retail investors

Jaiyeoba, Haruna Babatunde; Abdullah, Moha Asri; Ibrahim, Khairunisah

doi:10.1108/ijbm-07-2019-0242

Cited by 16 publications

(15 citation statements)

References 89 publications

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“…Aren et al (2016) evaluate the home bias, disposition effect and herding behavior of institutional investors in recognized journals, which intend to explore the behavioral biases from the behavior science. Jaiyeoba et al (2019) investigate the investment behaviors of Malaysian retail and institutional investors from the perspective of psychology. Although the research of institutional investors spreads in different directions, its research subjects are intrinsically related.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

A bibliometric review on institutional investor: current status, development and future directions

Ding

Zhao

Wang

2021

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PurposeIn order to further understand the research status and prospect, the purpose of this paper is to adopt a novel method in the research field of institutional investor to depict the knowledge structure and the evolution path over the past three decades.Design/methodology/approachBased on the 4,194 records retrieved from Web of Science, Citespace combined with VOSviewer are employed to perform visualized analysis.FindingsThe results reveal that the number of published articles of research on institutional investor has an exponential growth. Although the United States is the most significant contributor with more publications compared with other countries, Malaysia and Nigeria show higher centrality in the research network worldwide. Furthermore, “shareholder activism”, “corporate governance”, “global convergence”, “corporate reporting regulation” and “individual investor” are the largest five knowledge clusters. “Media coverage”, “corporate social responsibility” and “stock price crash risk” are the latest three knowledge clusters. Moreover, “governance worldwide”, “institutional character”, “dynamic information environment”, “investment patterns” and “sustainable development” are the potential extended research fields in the future.Originality/valueThis research helps the scholars and participants to capture the knowledge structure of research on institutional investors and to develop a reference to future opportunities.

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Section: Theoretical Backgroundmentioning

confidence: 99%

A bibliometric review on institutional investor: current status, development and future directions

Ding

Zhao

Wang

2021

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“…This study will employ second-order invariance analysis to test the equivalence of measured constructs across two groups: male and female. As noted by Adeyemi et al (2013) and supported by Jaiyeoba et al (2020), second-order invariance analysis improves parsimony through the use of fewer parameters, resulting into a theoretically error-free estimates which separate the unique variance of the first-order factors from measurement errors. Based on the foregoing discussion, the hypothesis to be tested is:…”

Section: Gender-based and Measurement Invariance Studiesmentioning

confidence: 93%

“…Following the steps in similar other studies that have employed second-order invariance analysis (Adeyemi et al , 2013; Chen et al , 2005; Jaiyeoba et al , 2020), the initial analyses to be conducted after data cleaning and fulfilling relevant assumptions are exploratory factor analysis (EFA), first-order confirmatory factor analysis (CFA), reliability test, convergent validity and divergent validity. Having met the thresholds for model fit and other assumptions, a configural invariance analysis and metric invariance tests based on factor, intercepts and residuals for the first- and second-order models will be conducted.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Furthermore, we have used second-order factor analysis in our quest to test for the equivalence of measured constructs across two groups: male and female. As noted by Adeyemi et al (2013) and Jaiyeoba et al (2020), second-order factor analysis is theoretically error-free estimates because it separates the unique variance of the first-order factors from the measurement errors; it also improves parsimony by using fewer parameters. Therefore, an elegant analysis of this nature is useful, especially to avoid the potential compromise of substantive gender-based comparisons resulting from the measurement.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Measurement invariance across gender for the CSR as a promotional tool for halal certified companies in Malaysia

Jaiyeoba

Abdullah²,

Hossain

2022

JIMA

Self Cite

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Purpose This study uses second-order measurement invariance analysis to investigate the perspective of gender divide on whether corporate social responsibility (CSR) can serve as a promotional tool for halal certified companies in Malaysia. Perhaps researching into the perspective of gender on whether CSR can serve as a promotional tool has either been ignored or received limited attention among the researchers from this domain. Hence, this study aims to fill this gap. Design/methodology/approach In the quest to achieve the mentioned aim, quantitative research design was adopted for this study and the developed questionnaire was used to collect data from 295 respondents, consisting of 172 males and 123 females. In analysing the data, this study has mainly used second-order measurement invariance analysis to uncover the difference across gender divide on whether CSR can serve as a promotional tool for halal certified companies. Findings The findings of this study reveal two perspectives to the issue of interest in this study. The tests of measurement invariance at the model level suggest a significant difference between male and female to a certain extent. The post hoc test (at the path level) reveals that there are significant differences between gender divide with respect to responsible dealings with clients and legal responsibility only. However, there are insignificant differences between them in connection with commitment to halal best practices, zakat and charitable donations, environmental responsibility, halal economic responsibility and employee welfare. Nonetheless, both gender groups agree that CSR activities will promote halal certified companies if these activities are appropriately communicated to halal consumers. Research limitations/implications The authors acknowledge that limitations cannot be avoided in any study, such as this study, where a nonprobability sampling technique is used. The respondents were largely drawn from Klang Valley in Malaysia; although Klang Valley’s population represents about a quarter of Malaysia’s total population, the authors admit that the opinions of the respondents may not represent the opinions of others in the country, and this may consequently limit the generalisability of the findings. Also, the authors acknowledge that self-report survey data is subject to response bias, which may reduce the accuracy of the data that were sourced from the respondents; though respondents were constantly reminded to respond honestly to all the questions in the questionnaire. Originality/value This study has uniquely employed second-order measurement invariance analysis to investigate the perspective of gender divide on whether CSR can serve as a promotional tool for halal certified companies in Malaysia. This study will enrich literature in this area of study.

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“…She suggested further studies could include other heuristic-driven biases that may affect both short- and long-term investment decisions. Jaiyeoba et al (2020) studied the investment behavior of Malaysian individuals and institutional investors in an attempt to determine whether behavioral biases influence these groups of investors equally. Their results indicate that institutional and individual investors are equally influenced by psychological biases, i.e.…”

Section: Research Gaps In the Existing Literaturementioning

confidence: 99%

The role of cognitive heuristic-driven biases in investment management activities and market efficiency: a research synthesis

Ahmad

2022

IJOEM

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PurposeThis article aims to systematically review the literature published in recognized journals focused on cognitive heuristic-driven biases and their effect on investment management activities and market efficiency. It also includes some of the research work on the origins and foundations of behavioral finance, and how this has grown substantially to become an established and particular subject of study in its own right. The study also aims to provide future direction to the researchers working in this field.Design/methodology/approachFor doing research synthesis, a systematic literature review (SLR) approach was applied considering research studies published within the time period, i.e. 1970–2021. This study attempted to accomplish a critical review of 176 studies out of 256 studies identified, which were published in reputable journals to synthesize the existing literature in the behavioral finance domain-related explicitly to cognitive heuristic-driven biases and their effect on investment management activities and market efficiency as well as on the origins and foundations of behavioral finance.FindingsThis review reveals that investors often use cognitive heuristics to reduce the risk of losses in uncertain situations, but that leads to errors in judgment; as a result, investors make irrational decisions, which may cause the market to overreact or underreact – in both situations, the market becomes inefficient. Overall, the literature demonstrates that there is currently no consensus on the usefulness of cognitive heuristics in the context of investment management activities and market efficiency. Therefore, a lack of consensus about this topic suggests that further studies may bring relevant contributions to the literature. Based on the gaps analysis, three major categories of gaps, namely theoretical and methodological gaps, and contextual gaps, are found, where research is needed.Practical implicationsThe skillful understanding and knowledge of the cognitive heuristic-driven biases will help the investors, financial institutions and policymakers to overcome the adverse effect of these behavioral biases in the stock market. This article provides a detailed explanation of cognitive heuristic-driven biases and their influence on investment management activities and market efficiency, which could be very useful for finance practitioners, such as an investor who plays at the stock exchange, a portfolio manager, a financial strategist/advisor in an investment firm, a financial planner, an investment banker, a trader/broker at the stock exchange or a financial analyst. But most importantly, the term also includes all those persons who manage corporate entities and are responsible for making their financial management strategies.Originality/valueCurrently, no recent study exists, which reviews and evaluates the empirical research on cognitive heuristic-driven biases displayed by investors. The current study is original in discussing the role of cognitive heuristic-driven biases in investment management activities and market efficiency as well as the history and foundations of behavioral finance by means of research synthesis. This paper is useful to researchers, academicians, policymakers and those working in the area of behavioral finance in understanding the role that cognitive heuristic plays in investment management activities and market efficiency.

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Institutional investors vs retail investors

Cited by 16 publications

References 89 publications

A bibliometric review on institutional investor: current status, development and future directions

A bibliometric review on institutional investor: current status, development and future directions

Measurement invariance across gender for the CSR as a promotional tool for halal certified companies in Malaysia

The role of cognitive heuristic-driven biases in investment management activities and market efficiency: a research synthesis

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