Mitigating Investor Risk-Seeking Behavior in a Down Real Estate Market

Seiler, Michael J.; Seiler, Vicky L.

doi:10.1080/15427560.2010.507166

Cited by 21 publications

(12 citation statements)

References 9 publications

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“…Investment decisions can be influenced by overconfidence, and mental accounting from psychological investors. Financial behavior of investors still plays an important role in investment decisions, so this study also supports the statement of Ackert & Deaves (2010); Chen et al (2007); Seiler & Seiler (2010) where investment…”

Section: Overconfidence (O)supporting

confidence: 88%

“…Thaler (2011) define mental accounting as a person's behavior when separating incoming and outgoing funds as well as accounting models. In the context of real estate, Seiler & Seiler (2010) state that investors who experience losses in their assets will be able to minimize their regrets by thinking that the return of the portfolio is greater than the loss. By not thinking about the losses just experienced, investors will feel calmer in the short term.…”

Section: Mental Accountingmentioning

confidence: 99%

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Over Confidence, Mental Accounting, and Loss Aversion In Investment Decision

Armansyah

2021

j.auditing.finance.forensic.account.

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Section: Overconfidence (O)supporting

confidence: 88%

Section: Mental Accountingmentioning

confidence: 99%

Over Confidence, Mental Accounting, and Loss Aversion In Investment Decision

Armansyah

2021

j.auditing.finance.forensic.account.

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“…However, there exist situations where the investors may be kind of riskseeking; see, for example,Åstebro (2003), Post and Levy (2005) and Seiler and Seiler (2010). Consider a portfolio of n risk assets with realizable returns X and the corresponding defaults I , i.e., I i = 0, the default of the i th asset occurs, 1, otherwise, for i = 1, .…”

Section: Discussionmentioning

confidence: 99%

On Heterogeneity in the Individual Model With Both Dependent Claim Occurrences and Severities

Zhang

Li²,

Cheung³

2018

ASTIN Bull.

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It is a common belief for actuaries that the heterogeneity of claim severities in a given insurance portfolio tends to increase its dangerousness, which results in requiring more capital for covering claims. This paper aims to investigate the effects of orderings and heterogeneity among scale parameters on the aggregate claim amount when both claim occurrence probabilities and claim severities are dependent. Under the assumption that the claim occurrence probabilities are left tail weakly stochastic arrangement increasing, the actuaries' belief is examined from two directions, i.e., claim severities are comonotonic or right tail weakly stochastic arrangement increasing. Numerical examples are provided to validate these theoretical findings. An application in assets allocation is addressed as well.

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“…In the real estate context, prospect theory has been explored to understand market performance and the behavioural factors that impact property investment decision-making. For instance, Seiler and Seiler (2010) confirmed in their study of investor's risk-seeking behaviour that investors strive to avoid regret and, therefore, prefer to hold on to non-performing assets instead of divesting at a loss. Further, Mori et al (2010) reported that mortgage choices are affected by psychological and cultural factors with evidence suggesting that risk-averse people are willing to accommodate risk as mortgage rate fluctuates.…”

Section: Theoretical Perspective To Property Investment Decision-makingmentioning

confidence: 98%

Property investment decision-making behaviour amidst market disruptions: an institutional perspective

Bolomope

Amidu

Filippova

et al. 2020

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PurposeDecision-making behaviour of property investors has been the focus of real estate research for decades. Yet, there is no consensus on a generally accepted behavioural model that suits all market conditions and investment peculiarities. While scholars have emphasized the significance of rational reasoning and cognitive influences on property investment decision-making preferences, gaps remain regarding the impacts of market disruptions on property investment decision-making behaviour. This paper, therefore, explores the institutional framework as a theoretical basis for understanding property investment decision-making behaviour amidst market disruptions.Design/methodology/approachThis paper reports a systematic review of pertinent theories that have explored decision-making behaviour. Commencing with an index search of high impact peer-reviewed journals, a snowball identification of relevant citations was also deployed to assemble theories from the field of psychology, sociology, economics and urban studies. Although a preliminary dataset of 82 papers with relevant decision-making theories was identified, the final dataset comprised 27 papers and 7 theories. The identified theories were reviewed accordingly.FindingsThe outcome of this study suggests that the institutional framework offers a robust approach to property investment decision-making amidst market disruptions, especially because it recognizes the dynamism in the investment environment and the roles of formal and informal rules that exist therein.Originality/valueThis study advances the current understanding of property investment decision-making behaviour by recognising the dynamism of the investment environment and how factors such as principles, laws, tradition and routines can lead to an established and legitimate standard of reasoning. By integrating both rational and cognitive attributes, the study provides a holistic perspective to property investors' decision-making behaviour in response to market disruptions.

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Mitigating Investor Risk-Seeking Behavior in a Down Real Estate Market

Cited by 21 publications

References 9 publications

Over Confidence, Mental Accounting, and Loss Aversion In Investment Decision

Over Confidence, Mental Accounting, and Loss Aversion In Investment Decision

On Heterogeneity in the Individual Model With Both Dependent Claim Occurrences and Severities

Property investment decision-making behaviour amidst market disruptions: an institutional perspective

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