Cognitive Limitation Herding Behavior And Investment Performance

Download Cognitive Limitation Herding Behavior And Investment Performance full books in PDF, epub, and Kindle. Read online Cognitive Limitation Herding Behavior And Investment Performance ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!

Cognitive Limitation, Herding Behavior, and Investment Performance

Author : Jing Zhao
Publisher : Open Dissertation Press
ISBN 13 : 9781361362426
Total Pages : pages
Book Rating : 4.3/5 (624 download)

DOWNLOAD NOW!

Book Synopsis Cognitive Limitation, Herding Behavior, and Investment Performance by : Jing Zhao

Download or read book Cognitive Limitation, Herding Behavior, and Investment Performance written by Jing Zhao and published by Open Dissertation Press. This book was released on 2017-01-27 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation, "Cognitive Limitation, Herding Behavior, and Investment Performance" by Jing, Zhao, 趙靜, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: This dissertation consists of two empirical essays about the cognitive limitation, herding behavior, and their association with investment performance. The essays utilize the detailed quotes and trades data in the Taiwan Futures Exchange with investor account identity, to study the cognitive limitation and herding behavior of the investors, and the association between the cognitive limitation, herding behavior, and the investment performance. In the first essay, I hypothesize that cognitive limitation maybe manifested in a disproportionately large volume of limit orders submitted at round-number prices if investors use these numbers as cognitive shortcuts., I find that investors with lower cognitive abilities, defined as higher limit order submission ratios at round numbers, suffer greater losses in their round-numbered and non-round-numbered limit orders, market orders, and round-trip trades. The positive correlation between cognitive ability and investment performance is monotonic and robust across futures and options markets. In addition, past trading experience helps mitigate the cognitive limitation. The second essay studies the herding behavior of investors. The second essay studies the herding behavior of investors. I find that individual investors trade in the same direction with other individual investors in the same branch of a broker. Individual investors' tendency to herd is persistent, and it is negatively associated with their cognitive abilities and trading experience. The higher the herding tendency of an individual investor is, the worse she performs in her investments. Importantly, the negative association between herding and investment performance is driven by the orders that are traded in the same direction with other individual investors. Our results suggest that herding with other individuals imposes a direct cost to individual investors. DOI: 10.5353/th_b5334870 Subjects: Investments - Psychological aspects

Cognitive Limitation, Herding Behavior, and Investment Performance

Author : 趙靜
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (899 download)

DOWNLOAD NOW!

Book Synopsis Cognitive Limitation, Herding Behavior, and Investment Performance by : 趙靜

Download or read book Cognitive Limitation, Herding Behavior, and Investment Performance written by 趙靜 and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Cognitive Limitation and Investment Performance

Author : Weiyu Kuo
Publisher :
ISBN 13 :
Total Pages : 87 pages
Book Rating : 4.:/5 (13 download)

DOWNLOAD NOW!

Book Synopsis Cognitive Limitation and Investment Performance by : Weiyu Kuo

Download or read book Cognitive Limitation and Investment Performance written by Weiyu Kuo and published by . This book was released on 2014 with total page 87 pages. Available in PDF, EPUB and Kindle. Book excerpt: We hypothesize that cognitive limitation may be manifested in a disproportionately large volume of limit orders submitted at round-number prices if investors use these numbers as cognitive shortcuts. Using detailed limit order data in the Taiwan Futures Exchange, we find that investors with lower cognitive abilities, defined as higher limit order submission ratios at round numbers, suffer greater losses in their round-numbered and non-round-numbered limit orders, market orders, and round-trip trades. The positive correlation between cognitive ability and investment performance is monotonic and robust across futures and options markets. In addition, past trading experience helps to mitigate the cognitive limitation.

Investors' Psychological Characteristics,Herding Behavior and Investment Performance

Author : 阮蘭紅
Publisher :
ISBN 13 :
Total Pages : 73 pages
Book Rating : 4.:/5 (831 download)

DOWNLOAD NOW!

Book Synopsis Investors' Psychological Characteristics,Herding Behavior and Investment Performance by : 阮蘭紅

Download or read book Investors' Psychological Characteristics,Herding Behavior and Investment Performance written by 阮蘭紅 and published by . This book was released on 2011 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Financial Behavior

Author : H. Kent Baker
Publisher : Oxford University Press
ISBN 13 : 0190270012
Total Pages : 681 pages
Book Rating : 4.1/5 (92 download)

DOWNLOAD NOW!

Book Synopsis Financial Behavior by : H. Kent Baker

Download or read book Financial Behavior written by H. Kent Baker and published by Oxford University Press. This book was released on 2017-05-02 with total page 681 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial Behavior: Players, Services, Products, and Markets provides a synthesis of the theoretical and empirical literature on the financial behavior of major stakeholders, financial services, investment products, and financial markets. The book offers a different way of looking at financial and emotional well-being and processing beliefs, emotions, and behaviors related to money. The book provides important insights about cognitive and emotional biases that influence various financial decision-makers, services, products, and markets. With diverse concepts and topics, the book brings together noted scholars and practitioners so readers can gain an in-depth understanding about this topic from experts from around the world. In today's financial setting, the discipline of behavioral finance is an ever-changing area that continues to evolve at a rapid pace. This book takes readers through the core topics and issues as well as the latest trends, cutting-edge research developments, and real-world situations. Additionally, discussion of research on various cognitive and emotional issues is covered throughout the book. Thus, this volume covers a breadth of content from theoretical to practical, while attempting to offer a useful balance of detailed and user-friendly coverage. Those interested in a broad survey will benefit as will those searching for more in-depth presentations of specific areas within this field of study. As the seventh book in the Financial Markets and Investment Series, Financial Behavior: Players, Services, Products, and Markets offers a fresh looks at the fascinating area of financial behavior.

Behavioral Finance and Wealth Management

Author : Michael M. Pompian
Publisher : John Wiley & Sons
ISBN 13 : 1118046315
Total Pages : 393 pages
Book Rating : 4.1/5 (18 download)

DOWNLOAD NOW!

Book Synopsis Behavioral Finance and Wealth Management by : Michael M. Pompian

Download or read book Behavioral Finance and Wealth Management written by Michael M. Pompian and published by John Wiley & Sons. This book was released on 2011-01-31 with total page 393 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Pompian is handing you the magic book, the one that reveals your behavioral flaws and shows you how to avoid them. The tricks to success are here. Read and do not stop until you are one of very few magicians." —Arnold S. Wood, President and Chief Executive Officer, Martingale Asset Management Fear and greed drive markets, as well as good and bad investment decision-making. In Behavioral Finance and Wealth Management, financial expert Michael Pompian shows you, whether you're an investor or a financial advisor, how to make better investment decisions by employing behavioral finance research. Pompian takes a practical approach to the science of behavioral finance and puts it to use in the real world. He reveals 20 of the most prominent individual investor biases and helps you properly modify your asset allocation decisions based on the latest research on behavioral anomalies of individual investors.

Herd Behavior in Financial Markets

Author : Sushil Bikhchandani
Publisher :
ISBN 13 :
Total Pages : 38 pages
Book Rating : 4.:/5 (318 download)

DOWNLOAD NOW!

Book Synopsis Herd Behavior in Financial Markets by : Sushil Bikhchandani

Download or read book Herd Behavior in Financial Markets written by Sushil Bikhchandani and published by . This book was released on 2000 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Impact of Cognitive Profile and Information Uncertainty on Herding Behavior of Investor

Author : Taqadus Bashir
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (13 download)

DOWNLOAD NOW!

Book Synopsis Impact of Cognitive Profile and Information Uncertainty on Herding Behavior of Investor by : Taqadus Bashir

Download or read book Impact of Cognitive Profile and Information Uncertainty on Herding Behavior of Investor written by Taqadus Bashir and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Primary objective of this paper was to investigate the impact of information uncertainty and cognitive profile of investors on herding behavior. We analyzed the behavior of investors influenced by the decision of other investors due to the lack of information and cognitive profile of investors. Well designed experiments in three sessions are conducted for this study. These experiments were conducted in three stages to check the impact of different levels of information and conditions on the herding behavior. This study reflects that there is a positive relationship between the information uncertainty and the biases of investor's behavior and occurrence of herding. Studies also reveal that the previously existing financial information and previously shown behavior in the market also encourages the herding phenomenon prevailing in the market. Researches indicate that the change in the Cognitive profile of the investors is more significant due to the increase in the financial information and the historical record of the transaction. There is also a significant change in the biases of the investor due to the public information.

Behavioral Finance: Where Do Investors' Biases Come From?

Author : Itzhak Venezia
Publisher : World Scientific
ISBN 13 : 9813100109
Total Pages : 395 pages
Book Rating : 4.8/5 (131 download)

DOWNLOAD NOW!

Book Synopsis Behavioral Finance: Where Do Investors' Biases Come From? by : Itzhak Venezia

Download or read book Behavioral Finance: Where Do Investors' Biases Come From? written by Itzhak Venezia and published by World Scientific. This book was released on 2016-10-27 with total page 395 pages. Available in PDF, EPUB and Kindle. Book excerpt: This unique volume presents new original research exploring factors that lead to investors behavioral biases. It discusses how features such as professionalism, sophistication, gender, media, and culture influence investors' decision-making in general, and in particular, how they generate (or limit) behavioral and cognitive biases. The effects of these factors on capital markets are also discussed. The book is based on the discussions and presentations at the First Israel Behavioral Finance Conference, which took place in Tel Aviv in May 2015. It examines in greater detail some of the key issues discussed at the conference.This is an innovative book in behavioral finance: it is the first to present an extensive collection of papers which discuss a comprehensive array of factors that influence or define investor character and analyzes these factors' effects on financial markets. The book is useful for readers interested in understanding the factors that influence investors' profiles and thus their behavioral biases. The book will be of great interest to researchers and students seeking a reference book which contains timely research on these areas of behavioral finance.

Investment Traps Exposed

Author : H. Kent Baker
Publisher : Emerald Group Publishing
ISBN 13 : 1787142531
Total Pages : 447 pages
Book Rating : 4.7/5 (871 download)

DOWNLOAD NOW!

Book Synopsis Investment Traps Exposed by : H. Kent Baker

Download or read book Investment Traps Exposed written by H. Kent Baker and published by Emerald Group Publishing. This book was released on 2017-03-20 with total page 447 pages. Available in PDF, EPUB and Kindle. Book excerpt: Investment Traps Exposed helps investors and investment practitioners increase their awareness about the external and internal traps that they or their clients can encounter.

Cognitive Driven Biases, Investment Decision Making

Author : Dahiman Khan
Publisher :
ISBN 13 :
Total Pages : 25 pages
Book Rating : 4.:/5 (13 download)

DOWNLOAD NOW!

Book Synopsis Cognitive Driven Biases, Investment Decision Making by : Dahiman Khan

Download or read book Cognitive Driven Biases, Investment Decision Making written by Dahiman Khan and published by . This book was released on 2020 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose - The purpose of this study is to examine the impact of cognitive Biases on investment decisions in Pakistani market while the financial literacy plays moderating role. A study model has been developed to describe the impact of cognitive biases i.e. herding bias, Disposition effect and mental accountability on investment decisions while the financial literacy is playing a moderating role in this study.Design/Methodology/Approach - The data for this study has been collected through an adapted structured questionnaire, which were self-administered by respondents: The questionnaires were distributed among 250 individuals. Correlation and regression analysis was used to test the direct and indirect effects of the identified cognitive biases on investment decision in Pakistani market.Expected Results - The findings of this research shows that herding bias, disposition effect and mental accounting has a positive impact on investment decisions. Financial literacy has negative moderating role in herding bias and positive moderating role in Disposition effect and negative moderating effect on herding and mental accountability bias in investment decision.Limitations - Despite the time limitation, random sampling technique for data collection was adopted involving only individuals from Pakistan. Follow-up studies can collect the data on wider scale to re-verify the proposed model.Practical Implications - The result of this research shows that, herding bias has negative impact on investment decision while disposition effect and mental accounting bias has a positive impact on investment decisions. Financial literacy has negative moderating role in herding bias and positive moderating role in Disposition effect and negative moderating effect on herding and mental accountability bias in investment decision.Originality/Values - The study can be further expanded in the future by using various other psychological and behavioral factors having a significant impact on investor's decisions.

Research in Multidisciplinary Subjects (Volume-3)

Author : Chief Editor- Biplab Auddya, Editor- V. S. Karpagavalli, Dr. Manjushree. R, Dr. Rajeev Kumar Sharma, Jayanth H, Punit Moris Ekka, Dr. Bitopi Nath, Sarita Soy
Publisher : The Hill Publication
ISBN 13 : 8196477619
Total Pages : 118 pages
Book Rating : 4.1/5 (964 download)

DOWNLOAD NOW!

Book Synopsis Research in Multidisciplinary Subjects (Volume-3) by : Chief Editor- Biplab Auddya, Editor- V. S. Karpagavalli, Dr. Manjushree. R, Dr. Rajeev Kumar Sharma, Jayanth H, Punit Moris Ekka, Dr. Bitopi Nath, Sarita Soy

Download or read book Research in Multidisciplinary Subjects (Volume-3) written by Chief Editor- Biplab Auddya, Editor- V. S. Karpagavalli, Dr. Manjushree. R, Dr. Rajeev Kumar Sharma, Jayanth H, Punit Moris Ekka, Dr. Bitopi Nath, Sarita Soy and published by The Hill Publication. This book was released on 2023-08-24 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Investor Behavior

Author : H. Kent Baker
Publisher : John Wiley & Sons
ISBN 13 : 1118492986
Total Pages : 645 pages
Book Rating : 4.1/5 (184 download)

DOWNLOAD NOW!

Book Synopsis Investor Behavior by : H. Kent Baker

Download or read book Investor Behavior written by H. Kent Baker and published by John Wiley & Sons. This book was released on 2014-02-10 with total page 645 pages. Available in PDF, EPUB and Kindle. Book excerpt: WINNER, Business: Personal Finance/Investing, 2015 USA Best Book Awards FINALIST, Business: Reference, 2015 USA Best Book Awards Investor Behavior provides readers with a comprehensive understanding and the latest research in the area of behavioral finance and investor decision making. Blending contributions from noted academics and experienced practitioners, this 30-chapter book will provide investment professionals with insights on how to understand and manage client behavior; a framework for interpreting financial market activity; and an in-depth understanding of this important new field of investment research. The book should also be of interest to academics, investors, and students. The book will cover the major principles of investor psychology, including heuristics, bounded rationality, regret theory, mental accounting, framing, prospect theory, and loss aversion. Specific sections of the book will delve into the role of personality traits, financial therapy, retirement planning, financial coaching, and emotions in investment decisions. Other topics covered include risk perception and tolerance, asset allocation decisions under inertia and inattention bias; evidenced based financial planning, motivation and satisfaction, behavioral investment management, and neurofinance. Contributions will delve into the behavioral underpinnings of various trading and investment topics including trader psychology, stock momentum, earnings surprises, and anomalies. The final chapters of the book examine new research on socially responsible investing, mutual funds, and real estate investing from a behavioral perspective. Empirical evidence and current literature about each type of investment issue are featured. Cited research studies are presented in a straightforward manner focusing on the comprehension of study findings, rather than on the details of mathematical frameworks.

Quasi Rational Economics

Author : Richard H. Thaler
Publisher : Russell Sage Foundation
ISBN 13 : 9780871548474
Total Pages : 396 pages
Book Rating : 4.5/5 (484 download)

DOWNLOAD NOW!

Book Synopsis Quasi Rational Economics by : Richard H. Thaler

Download or read book Quasi Rational Economics written by Richard H. Thaler and published by Russell Sage Foundation. This book was released on 1994-01-04 with total page 396 pages. Available in PDF, EPUB and Kindle. Book excerpt: Standard economics theory is built on the assumption that human beings act rationally in their own self interest. But if rationality is such a reliable factor, why do economic models so often fail to predict market behavior accurately? According to Richard Thaler, the shortcomings of the standard approach arise from its failure to take into account systematic mental biases that color all human judgments and decisions.

Social Cognition, Inference, and Attribution

Author : R. S. Wyer, Jr.
Publisher : Psychology Press
ISBN 13 : 9780898594997
Total Pages : 410 pages
Book Rating : 4.5/5 (949 download)

DOWNLOAD NOW!

Book Synopsis Social Cognition, Inference, and Attribution by : R. S. Wyer, Jr.

Download or read book Social Cognition, Inference, and Attribution written by R. S. Wyer, Jr. and published by Psychology Press. This book was released on 1979-09 with total page 410 pages. Available in PDF, EPUB and Kindle. Book excerpt: First Published in 1979. Routledge is an imprint of Taylor & Francis, an informa company.

Behavioural Investing

Author : James Montier
Publisher : John Wiley & Sons
ISBN 13 : 0470687797
Total Pages : 740 pages
Book Rating : 4.4/5 (76 download)

DOWNLOAD NOW!

Book Synopsis Behavioural Investing by : James Montier

Download or read book Behavioural Investing written by James Montier and published by John Wiley & Sons. This book was released on 2009-10-09 with total page 740 pages. Available in PDF, EPUB and Kindle. Book excerpt: Behavioural investing seeks to bridge the gap between psychology and investing. All too many investors are unaware of the mental pitfalls that await them. Even once we are aware of our biases, we must recognise that knowledge does not equal behaviour. The solution lies is designing and adopting an investment process that is at least partially robust to behavioural decision-making errors. Behavioural Investing: A Practitioner’s Guide to Applying Behavioural Finance explores the biases we face, the way in which they show up in the investment process, and urges readers to adopt an empirically based sceptical approach to investing. This book is unique in combining insights from the field of applied psychology with a through understanding of the investment problem. The content is practitioner focused throughout and will be essential reading for any investment professional looking to improve their investing behaviour to maximise returns. Key features include: The only book to cover the applications of behavioural finance An executive summary for every chapter with key points highlighted at the chapter start Information on the key behavioural biases of professional investors, including The seven sins of fund management, Investment myth busting, and The Tao of investing Practical examples showing how using a psychologically inspired model can improve on standard, common practice valuation tools Written by an internationally renowned expert in the field of behavioural finance

The Digital Financial Revolution in China

Author : David Dollar
Publisher : Brookings Institution Press
ISBN 13 : 0815739567
Total Pages : 210 pages
Book Rating : 4.8/5 (157 download)

DOWNLOAD NOW!

Book Synopsis The Digital Financial Revolution in China by : David Dollar

Download or read book The Digital Financial Revolution in China written by David Dollar and published by Brookings Institution Press. This book was released on 2022-05-10 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt: Describes how China is in the lead in transforming finance for the digital age This book is the product of a joint research project between economists at the National School of Development, especially the affiliated Institute of Digital Finance, at Peking University and at the Brookings Institution. It investigates the impact of financial technology on job creation, income distribution, and consumer welfare in China. It also examines larger systemic issues such as monetary policy, stability of the banking sector, and international trade and payments.