| 1. |
- Andersson, Maria, 1977, et al.
(författare)
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Effects of stock investments of information about short versus long price series
- 2012
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Ingår i: Review of behavioral finance. - : Emerald. - 1940-5979. ; 4:2, s. 81-97
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Tidskriftsartikel (refereegranskat)abstract
- Purpose – The purpose of this paper is to investigate whether stock price predictions and investment decisions improve by exposure to increasing price series. Design/methodology/approach – The authors conducted three laboratory experiments in which undergraduates were asked to role-play being investors buying and selling stock shares. Their task was to predict an unknown closing price from an opening price and to choose the number of stocks to purchase to the opening price (risk aversion) or the closing price (risk taking). In Experiment 1 stock prices differed in volatility for increasing, decreasing or no price trend. Prices were in different conditions provided numerically for 15 trading days, for the last 10 trading days, or for the last five trading days. In Experiment 2 the price series were also visually displayed as scatter plots. In Experiment 3 the stock prices were presented for the preceding 15 days, only for each third day (five days) of the preceding 15 days, or as five prices, each aggregated for three consecutive days of the preceding 15 days. Only numerical price information was provided. Findings – The results of Experiments 1 and 2 showed that predictions were not markedly worse for shorter than longer price series. Possibly because longer price series increase information processing load, visual information had some influence to reduce prediction errors for the longer price series. The results of Experiment 3 showed that accuracy of predictions increased for less price volatility due to aggregation, whereas again there was no difference between five and 15 trading days. Purchase decisions resulted in better outcomes for the aggregated prices. Research limitations/implications – Investors´ performance in stock markets may not improve by increasing the length of evaluation intervals unless the quality of the information is also increased. The results need to be verified in actual stock markets. Practical implications – The results have bearings on the design of bonus systems. Originality/value – The paper shows how stock price predictions and buying and selling decisions depend on amount and quality of information about historical prices.
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| 2. |
- Andersson, Maria, 1977, et al.
(författare)
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Hållbara bonussystem : Sustainable bonus systems
- 2011
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Ingår i: Hållbar utveckling - från risk till värde / L. G. Hassel, L.-O. Larsson & E. Nore (red.). - Malmö : Studentlitteratur. - 9789144075327 ; , s. 41-49
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Bokkapitel (övrigt vetenskapligt/konstnärligt)
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| 3. |
- Biel, Anders, 1948, et al.
(författare)
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Behavioural Impediments to Sustainable Investment.
- 2007
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Ingår i: Paper presented at the 32nd IAREP Conference, Ljubljana, Slovenia..
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Konferensbidrag (refereegranskat)abstract
- The present study investigates impediments to sustainable investment (SI) that reside within the organizations of institutional investors. A questionnaire was addressed to 35 institutional investors with board directors, senior investment managers or portfolio managers acting as respondents. The respondents represented SI as well as non-SI funds. Presently, little is known about how variations in the endorsement of values and norms among members in an organisation affect decision making. We tested the hypothesis that to the extent that a SI policy has been adopted, members of the organisation share a norm to advance SI, driven by an adherence to social and environmental values, together with beliefs about potential benefits of SI. We also examined an alternative model assuming a direct link between beliefs about financial outcomes of SI and SI practices in the organisation.
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| 4. |
- Gärling, Tommy, 1941, et al.
(författare)
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Behavioural impediments to sustainable investment.
- 2008
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Ingår i: Paper presented at the 16th annual conference of European Association of Environmental and Resource Economists (EARE), University of Gothenburg, Göteborg, Sweden..
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Konferensbidrag (refereegranskat)abstract
- Institutional investors are large and powerful owners of corporate equity and have, through their investment decisions, the potential to influence company behaviour in a more sustainable direction. How can institutional investors be influenced? There are many obstacles to overcome before such influences will become more widespread. The present study investigates impediments to sustainable investment (SI) that reside within and between organizations of institutional investors. A questionnaire was addressed to 37 institutional fund companies with board directors, senior investment managers, and portfolio managers acting as respondents. A main impediment within the organizations is that top and portfolio management differs in their view on SI. Although they have similar beliefs about short- and long-term returns of SI funds, top management has a more positive view on intangibles associated with SI. This includes to what extent one believes that members of the own organization support a norm that SI should be implemented and that the share of SI in the own company will increase in the future. The main impediment to SI practice may also be traced to incentives and rules that through imitation are adopted across organisations, potentially underlying the frequently observed herding behaviour among institutional investors. We therefore also present evidence for the hypothesis that herding is caused by interdependence between institutional investors, for instance, that leading investors or a critical mass of investors influence many others to follow suit.
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| 5. |
- Gärling, Tommy, 1941, et al.
(författare)
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Perceived Influences on Adoption of Socially Responsible Investment Among Swedish Institutional Investors
- 2008
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Ingår i: "Emerging Markets, Currencies, and Financial Stability", University of Rome, December.
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Konferensbidrag (refereegranskat)abstract
- Institutional investors are large and powerful owners of corporate equity and have, through their investment decisions, the potential to influence company behaviour in a more sustainable direction. How can institutional investors be influenced? There are many obstacles to overcome before such influences will become more widespread. The present study investigates impediments to sustainable investment (SI) that reside within and between organizations of institutional investors. A survey questionnaire was answered by 37 institutional fund companies with board directors, senior investment managers, and portfolio managers acting as respondents. It was found that a main impediment within the organizations is that top and portfolio management differs in their view on SI. Although they have similar beliefs about short-term and long-term returns of SI funds, top management has a more positive view on intangibles associated with SI. This includes to what extent one believes that members of the own organization support a norm that SI should be implemented and that the share of SI in the own company will increase in the future. The main impediment to SI practice may also be traced to incentives and rules that through imitation are adopted across organisations, potentially underlying the frequently observed herding behaviour among institutional investors.
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| 6. |
- Hedesström, Martin, 1969, et al.
(författare)
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Effects of bonuses on diversification in delegated stock portfolio management
- 2015
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Ingår i: Journal of Behavioral and Experimental Finance. - : Elsevier BV. - 2214-6350. ; 7:September, s. 60-70
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Tidskriftsartikel (refereegranskat)abstract
- Our aim is to investigate whether bonuses make stock portfolio managers take higher risks by diversifying less. In two experiments with undergraduates role-playing being professional investors, we test a model implying that they initially anchor on 100% allocation to one of two options delivering the largest bonus payout, then adjust towards allocating equally much to each option (maximal diversification) depending on the degree of perceived uncertainty of the bonus outcome. In Experiment 1 we find as expected that when the bonus is reduced, investment in the preferred option decreases such that diversification increases. Diversification is larger when uncertainty of the bonus outcome is made salient. In Experiment 2weshow that a majority herd strengthens the effect of a bonus for investing in a preferred option despite salient uncertainty of the bonus outcome. In actual stock markets such herding effects would result from investors being similarly rewarded by bonuses.
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| 7. |
- Hedesström, Martin, 1969, et al.
(författare)
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Stock investors' preference for short-term vs. long-term bonuses
- 2012
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Ingår i: Journal of Socio-Economics. - : Elsevier BV. - 1053-5357. ; 41:2, s. 137-142
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Tidskriftsartikel (refereegranskat)abstract
- Bonuses in the finance sector may be based on too short time intervals for environmental and social factors to be taken into account in investment decisions. We report two experiments to investigate whether investors prefer short-term to long-term bonuses. In Experiment 1 employing 27 undergraduates, preferences were measured for four short-term certain bonuses, evenly distributed across a time interval, and one certain long-term bonus at the end of the time interval. A majority chose the short-term bonuses, and in order for the long-term bonus to be equally preferred it had to be about 40% higher than the four added short-term bonuses. Experiment 2 employing another 36 undergraduates introduced outcome uncertainty that more accurately reflects the choices stock investors face. The participants again choose between a long-term bonus and four distributed short-term bonuses. It was shown that uncertainty made more participants prefer the long-term bonus to the added short-term bonuses than when the outcome was certain. A smaller increase of the long-term bonus of about 20% was now required to make it equally attractive as the four added short-term bonuses. © 2011 Elsevier Inc.
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| 8. |
- Hedesström, Martin, 1969, et al.
(författare)
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Stock investors' preferences for short-term versus long-term bonuses
- 2011
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Ingår i: Journal of Socio-Economics. ; 41, s. 137-142
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Tidskriftsartikel (refereegranskat)abstract
- Bonuses in the finance sector may be based on too short time intervals for environmental and social factors to be taken into account in investment decisions. We report two experiments to investigate whether investors prefer short-term to long-term bonuses. In Experiment 1 employing 27 undergraduates, preferences were measured for four short-term certain bonuses, evenly distributed across a time interval, and one certain long-term bonus at the end of the time interval. A majority chose the short-term bonuses, and in order for the long-term bonus to be equally preferred it had to be about 40% higher than the four added short-term bonuses. Experiment 2 employing another 36 undergraduates introduced outcome uncertainty that more accurately reflects the choices stock investors face. The participants again choose between a long-term bonus and four distributed short-term bonuses. It was shown that uncertainty made more participants prefer the long-term bonus to the added short-term bonuses than when the outcome was certain. A smaller increase of the long-term bonus of about 20% was now required to make it equally attractive as the four added short-term bonuses.
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| 9. |
- Jansson, Magnus, 1970, et al.
(författare)
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Investment style and perceived drivers of adoption of socially responsible investment among Swedish institutional investors
- 2011
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Ingår i: The Journal of Investing. - : Pageant Media US. - 1068-0896 .- 2168-8613. ; 20:3, s. 118-123
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Tidskriftsartikel (refereegranskat)abstract
- A survey was conducted to investigate investment style and drivers of socially responsible investment (SRI) among institutional investors. Respondents were 60 professionals working as SRI or non-SRI investors in 19 different Swedish banks, pension funds, or mutual fund companies. The results showed that non-SRI investors perceived market regulations to be a strong driver of SRI, while SRI investors perceived others’ behavior to be a strong driver. No differences were found between SRI and non-SRI investors with respect to short-term versus long-term or active versus passive investment styles.
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