Limit Order Trading Behavior and Individual Investor Performance

Anderson, Alexander R.A.; Henker, Julia; Owen, Sian

doi:10.1207/s15427579jpfm0602_3

Cited by 16 publications

(15 citation statements)

References 21 publications

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“…Investors' performance was not found to be affected by herding and loss aversion behavior. These results contrast with those of previous studies (Phuoch and Loungh, 2011; Ameer and Anum, 2017, Anderson, Henker & Owen, 2005and Javeria et. al, 2016 which state that herding could be helpful in improving the investment performance.…”

Section: Conclusion and Recommendationscontrasting

confidence: 99%

“…The other variables i.e., Herding, and Loss aversion have no effect on investment performance. Although previous researchers (e.g., Phuoch and Loungh, 2011;Ameer and Anum, 2017, Anderson, Henker & Owen, 2005and Javeria et. al, 2016 found herding bias to be positively related to investment performance but, on the contrary, in this study no significant relationship of investment performance was found with these biases, except the Heuristics variable which happens to affect the investment performance PSX.…”

Section: Methodsmentioning

confidence: 95%

“…Researchers in the field of behavioral finance like Anderson, Henker & Owen (2005) posited that behavioral biases could be helpful for investors in making their investment decisions easily and that the investors are prone to different kinds of biases while making investment related decisions and these decisions can result in either good or bad performance. In the study we will follow the method developed by Oberlechner and Osler (2004) for measuring individuals' investment performance.…”

Section: Literature Reviewmentioning

confidence: 99%

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Impact of Behavioral Biases on Investment Performance in Pakistan: The Moderating Role of Financial Literacy

Rafique

Quddoos

Kalim

et al. 2020

JAFEE

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This study aims at understanding the relationships of certain behavioral biases with the investment performance, and identifies the moderating role of financial literacy upon these hypothesized relationships. Data is collected through questionnaire from the investors trading at Pakistan Stock Exchange (PSX). Structured Equation Modeling (SEM) is used to analyze the data with the results that only anchoring and overconfidence biases have significant effects on investment performance. The results also show that presence of financial literacy does not play any role in improving the performance of investors. Majorly, findings of current study contribute by testing the moderating role of financial literacy between the behavioral biases and the outcome of investment decisions and thus expected to be useful for investors and policy makers.

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Section: Conclusion and Recommendationscontrasting

confidence: 99%

Section: Methodsmentioning

confidence: 95%

Section: Literature Reviewmentioning

confidence: 99%

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Impact of Behavioral Biases on Investment Performance in Pakistan: The Moderating Role of Financial Literacy

Rafique

Quddoos

Kalim

et al. 2020

JAFEE

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“…Future research could discuss and use different types of nonprofessional investors. It may also study the impact of communication strategies on professional investors, as their decision‐making process is expected to be more rational (Anderson, Henker, & Owen, ). Third, this study only considers the extreme cases of an active assurance provider communication relative to no assurance provider communication.…”

Section: Discussionmentioning

confidence: 99%

Why are auditors blamed when something goes wrong? Experimental evidence

2018

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Audit firms claim that they are used as the whipping boy when something goes wrong, either because of the public's poor knowledge of the auditing function or because financial incentives exist to blame the audit firm. An alternative explanation is that audit firms' active communication of their assurance provider role causes blaming behavior. We investigate these different explanations based on a 2 × 2 between-subjects experiment in which we manipulate financial incentives to blame the audit firm and the audit firm's communication strategy. Three weeks in advance of the experiment we administered an auditing knowledge questionnaire to the participants to include their auditing knowledge levels into our study. We find that audit firms with "deep pockets" and an active assurance provider communication strategy receive significantly higher blame, and that poor knowledge of auditing is associated with higher blame. Furthermore, when a firm uses an assurance provider communication strategy, then it receives higher blame from participants with high (relative to low) auditing knowledge.

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“…According to Singh and Bhawal (2010), perception of risk is manageable if investor is very much aware of every aspect of risk and fluctuations occurs levels of risk. Anderson et al (2005) found that individuals who place the most orders and have the highest number of transactions enjoy higher returns than those with fewer order and transactions. Bundle of studies have been conducted on issue of risk perception and investment behavior but almost all studies were only focusing on traditional investors like individual investor and institutional investors.…”

Section: Introductionmentioning

confidence: 99%

Relationship between Risk Perception and Employee Investment Behavior

Shafi¹,

Hussain²,

Sajjad³

et al. 2011

JEBS

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Investment behavior of an investor depends on his/her risk perception and risk attitude. This paper attempts to explore that how the perception of an investor who is also the employee of that organization differs from other investors. Does he/she perceives risk similarly as other common investors or his relationship with the organization as an employee has any impact his/her risk perception, attitude and investment behavior. This research study is conceptual in nature and mainly based on previous literature findings and evidences. Findings of this study suggested that employees risk perception is directly related with investment behavior and there is strong relationship between them. This can help the management to make special offers of shares to employees, this will further strength the bond of employees with the organization.

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Limit Order Trading Behavior and Individual Investor Performance

Cited by 16 publications

References 21 publications

Impact of Behavioral Biases on Investment Performance in Pakistan: The Moderating Role of Financial Literacy

Impact of Behavioral Biases on Investment Performance in Pakistan: The Moderating Role of Financial Literacy

Why are auditors blamed when something goes wrong? Experimental evidence

Relationship between Risk Perception and Employee Investment Behavior

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