Faid Gul

Bio: Faid Gul is an academic researcher from National University of Modern Languages. The author has contributed to research in topics: Stock exchange & Herd behavior. The author has an hindex of 3, co-authored 4 publications receiving 12 citations.

An Empirical Study of Investor Attitudinal Factors Influencing Herd Behavior:Evidence from Pakistan Stock Exchange

Abstract: Behavioral Finance is an evolving field that studies how psychological factors affect decision making under uncertainty. Herding behavior is one of the psychological factors that instigate investor to mimic the actions of other investors in the market rather than using his personal assessments. This study seeks to find the influence of certain attitudinal factors namely, decision conformity, hasty decision, mood, decision accuracy, and overconfidence, on the individual investor tendency to embrace herd behavior. Primary data for the study are collected using structured questionnaires from a sample of 194 investors who are trading at Islamabad and Lahore branches of Pakistan Stock Exchange. Multiple linear regression analysis is used to test the hypotheses of this study. Findings of this study provide evidence that attitudinal factors have a significant influence on investor’s tendency to take on herd behavior. It is concluded from the results of multiple linear regression that decision conformity, mood, and decision accuracy have a significant impact on individual investor tendency to adopt herd behavior. However, investor hasty decision and overconfidence is insignificant predictors of herd behavior. Keywords: Decision conformity, Hasty decision, Mood, Decision accuracy, Overconfidence, Herd behavior

Relationship Between Trading Volume And Stock Exchange Performance: A Case From Karachi Stock Exchange

Abstract: Over the past fifty years, much work has been done trying to understand the relationship between volume and price changes of individual stocks. In this article, we attempt to introduce and discuss some of these articles and take inference for relationship of traded volume and aggregate stock exchange index performance. This article presents an empirical analysis of the relationship between trading volume and performance of stock exchange index on a given day in the Pakistani market. Just like individual stocks, the relationship between changes in KSE 100 index and trading volume, irrespective of the direction of the index change, is significantly positive across all three alternative measures of daily trading volume (the daily number of shares traded; the daily total monetary value of shares traded; the daily number of equity trades).

Do Islamic banks financially perform better than conventional banks?: a comparative study of Pakistani banks

Abstract: Pakistan has a majority of Muslims population, but the general public is not well aware of the culture of Islamic banking. Not only the non Muslims but among Muslims, separate groups have different attitudes, opinions, views and understanding toward Islamic banking activities e.g. risk management in Islamic banks, profitability, liquidity, and solvency. In this study, financial ratios are used to compare the performance of Islamic and Conventional banks. This study finds that Pakistani Islamic banks are significantly less profitable and less efficient while Islamic bank are more solvent (less risky) as compared to the Conventional banks. But there is no significant difference in the liquidity position of Islamic and Conventional banks.

Beyond Information: Disclosure, Distracted Attention, and Investor Behavior

Abstract: Financial disclosure documents provide investors with product details to facilitate informed investment decisions. We investigate whether the appearance – the visual frame – of disclosure documents impacts risk and return expectations and investment behavior. In our experiment, subjects decide about investments into real-life mutual funds. We find that subjects expect a smaller return variance, invest more and gather less correct information if visual distractors are present in the visual frame. Results are in line with the distracted attention mechanism and suggest that disclosure policies should take the visual frame into account.

What make investors herd while investing in the Indian stock market? A hybrid approach

Abstract: PurposeIn recent years, significant research has focused on the question of whether severe market periods are accompanied by herding behavior. As herding behavior is a considerable cause of the speculative bubble and leads to stock market deviations from their basic values it is necessary to examine the motivators which led to herding behavior among investors. The paper aims to discuss this issue.Design/methodology/approachIn this study, the authors performed a two-phase analysis to address the research questions of the study. In the first phase, for text analysis NVivo software was used to identify the factors driving herding behavior among Indian stock investors. The analysis of a text was performed using word frequency analysis. While in the second phase, the Fuzzy-AHP analysis techniques were employed to examine the relative importance of all the factors determined and assign priorities to the factors extracted.FindingsResults of the study depicted Investor Cognitive Psychology (ICP), Market Information (MI), Stock Characteristics (SC) as the top-ranked factors driving herding behavior, while Socio-Economic Factors (SEF) emerged as the least important factor driving herding behavior.Research limitations/implicationsThe current study was undertaken among stock investors from North India only. Moreover, numerous factors are not part of the study but might significantly influence the investors' herding behaviors.Practical implicationsComprehending the influences of the different factors discussed in the study would enable stock investors to be more aware of their investment choices and not resort to herd behavior. This research enables decision-makers to understand the reasons for herd activity and helps them act accordingly to improve the stock market's performance.Originality/valueThe current study will provide an inclusive overview of herding behavior motivators among Indian stock investors. This study's results can be extremely useful for both academics and policymakers to gain some insight into the functioning of the Indian stock market.

Determinants of business groups’ performance: empirical evidence from pakistan

Abstract: Business groups have been described as improving the value of the affiliated firms they control, something which is often beyond the capability of standalone firms. The purpose of the current thesis is to increase overall understanding as regards the factors determining the performance and the value of firms affiliated with business groups. The current study employs data from 284 Pakistani listed non-financial firms from 2008–2015. The research has analysed the effect of tangible and intangible resources and interlocking directorates on the performance of individual firms affiliated with business groups. In order to test the hypotheses, two dependent variables are used, namely accounting (ROA) and stock market (Tobin’s q) measures of performance. Specifically, this thesis is composed of three empirical studies: the first probes and compares the performance measures of group member and standalone firms; the second part investigates the effect of tangible and intangible resources on financial performance, with the value of firms connected with business groups; and finally, the last section explores the way in which interlocking directorates influence the performance and control management of group-affiliated firms. The findings of the first part of Chapter 5 report a strong and robust evidence of superior performance of group-member firms. It is documented that business group memberships have statistically significant positive effects on financial performance and the value of firms. Therefore, group membership seems to be a determining factor of performance between group-member firms and standalone firms. In addition, size and sales growth has an increasing effect on the performance of firms. The findings suggest that business groups in Pakistan are efficient economic actors that substitute for missing external capital markets and weak institutions by reducing transaction Costs and information asymmetry between the firm and market. Applying the framework of tangible and intangible resources by focusing on panel and crosssectional data of publicly listed Pakistani firms, in the second part of Chapter 5, a positive

The Relationship Between Trading Volume and Market Returns: A VAR/Granger Causality Testing Approach in the Context of Saudi Arabia

Abstract: This paper investigates the relationship between trading volume and market returns in the Saudi stock market. Daily data of number of shares traded and TASI returns from 2010 till mid-2021 are used for the same. The Granger causality test reveals a unidirectional relationship from returns to volume. This is supported by the findings of the VAR test and the Impulse Response Function (IRF) test. Trading volume does not carry informational content and cannot predict prices. Returns do impact volume, but the effect is not steady. The results do not provide support for the Sequential Information Arrival Hypothesis (SIAH). The asymmetric information model and the difference of opinion model can provide an explanation for the obtained results.

The effects of business cycle indicators on stock market indices of food industry in Iran

Abstract: This paper investigates the effects of the business cycle indicators on stock market indices of food industry companies in Iran stock market. Using dynamic panel and Panel VAR methods for seasonal data of 2001-2015, the results show that the effect of GDP and agricultural value-added as indicators of business cycle on stock market indices of sales volume, price index, net profit and stock return are positive. The results of panel VAR models also show that the shocks entered by GDP and agricultural value ?added have a different effect on stock market indices of sales volume, price index, net profit and ?stock return. Due to the positive effects of the business cycles indicators on the stock market indices of food industry companies, it is recommended that policy-makers consider strategies to increase GDP and agriculture value-added. Acknowledgement : I am attaching herewith a manuscript entitled ?The Impacts of Business Cycle Indicators on Stock Market Indices of Food Industry for the 30th international conference of agricultural economics. With the submission of this manuscript, I would like to undertake that the above-mentioned manuscript has not been published elsewhere, accepted for publication elsewhere or under editorial review for publication elsewhere. Please don't hesitate to contact me for further information. Thanks in advance for your time and consideration. Sincerely Hosein Mohammadi, Associate Professor of Agricultural Economics Ferdowsi University of Mashhad, Iran