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Personality
Type and Investment Choice: An Empirical Study --
Manish Mittal and R K Vyas
Investors have certain
cognitive and emotional weaknesses which come in the way
of their investment decisions. Over the past few years,
behavioral finance researchers have scientifically shown
that investors do not always act rationally. They have behavioral
biases that lead to systematic errors in the way they process
information for investment decision. Many researchers have
tried to classify the investors on the basis of their relative
risk taking capacity and the type of investment they make.
Empirical evidence also suggest that factors such as age,
income, education and marital status affect an individual's
investment decision. This paper classifies Indian investors
into different personality types and explores the relationship
between various demographic factors and the investment personality
exhibited by the investors.
©
2008 The Icfai University Press. All Rights Reserved.
An
Indicator for Internalization of Analyst's Recommendations
by Investors -- Nissim Ben
David
This paper proposes
an index for evaluating the internalization of an analyst's
recommendations by investors at various points of time that
follow the recommendation day. The model is applied to the
Israeli stock market for the years 2004 and 2005. The results
indicate that investors in the Israeli stock market internalize
a recommendation 14 days after its publication. Internalization
continues 30 days after the publication day. The importance
of this paper is that it is the first time an index for
evaluating investor's reaction to analyst's recommendations
in various stock markets has been proposed. Such information
is valuable, since it can improve investment strategies
that follow the publication of an analyst's recommendation.
An investor would prefer buying a recommended stock when
he expects a large return and would sell it when the recommendation's
effect is exhausted.
©
2008 The Icfai University Press. All Rights Reserved.
A Review of
Literature on Behavioral Cost Allocation with Recommendations
for Future Research -- Ajay
Kumar Pillai
The literature on
cost allocation has grown in recent years. This paper describes
a variety of perspectives on cost allocation, which have
been used to develop a framework for consideration of the
strategic implications of cost allocation. Seminal works
on cost allocation from different dimensions have been examined
to establish a framework. Based on this framework, an agenda
for additional theoretical and empirical research for cost
allocation has been proposed. The relevance of developing
a more conceptual framework for cost allocation literature
in Indian companies has become quite significant. This paper
provides a theoretical framework and a research agenda for
researchers and management scholars.
©
2008 The Icfai University Press. All Rights Reserved.
Momentum and
Reversal Puzzle in Emerging Markets --
José Luiz Barros Fernandes and José Renato
Haas Ornelas
Empirical research
about the existence of momentum and reversal phenomena in
emerging stock markets shows that momentum profits are in
general positive but not always economically and statistically
significant. This paper re-examines the momentum and reversal
phenomena in 15 emerging markets, using data from 1995 to
2005. The results are quite different from previous literature
where significant evidence has been found of reversals in
most of the emerging stock markets, even when they were
controlled for systematic risk and size. There are many
possible explanations for this puzzle. One common interpretation
for the momentum phenomenon in the short-term is the slow
diffusion of information, leading to an underreaction in
the markets.
©
2008 The Icfai University Press. All Rights Reserved.
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