From Efficient Markets Theory to Behavioral Finance

Self-attribution bias is a long-standing concept in psychology research and refers to individuals’ tendency to attribute successes to personal skills and failures to factors beyond their control. Recently, this bias is also being studied in household finance research and is considered to underlie and reinforce investor overconfidence. To date, however, the existence of self-attribution bias amongst individual investors is not directly empirically tested. That is, it remains unclear whether good (vs. bad) returns indeed make investors believe more (vs. less) strongly that skills drive their performance. Using a unique combination of survey data and matching trading records of a sample of clients from a large discount brokerage firm, we find that: (1) the higher the returns in a previous period are, the more investors agree with a statement claiming that their recent performance accurately reflects their investment skills (and vice versa); and (2) while individual returns relate to more agreement, market returns have no such effect.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2441231_code375352.pdf?abstractid=2367230&mirid=3

Self-Attribution Bias in Consumer Financial Decision-Making: How Investment Returns Affect Individuals' Belief in Skill

Business incubators create value by combining the entrepreneurial spirit of start-ups with the resources that are typically available to new businesses. It is widely recognized that knowledge-based entrepreneurial companies are the main creators of economic growth, and such enterprises require special business development services. Therefore, the study aims to examine the role of business incubators in providing greater services (networking services, capital support, and training programs) in entrepreneurship development. Secondly, it also examines the mediating and moderating role of business start-up and government regulations for entrepreneurship. Using a quantitative methodology, we examine 567 samples through structural equation modeling. We find that the business incubators are playing an effective mediating role in providing networking services, capital support, and training programs to individuals and entrepreneurs, which are significant for entrepreneurship development, whereas business start-up positively mediates the relationship between networking services, capital support, training programs, and entrepreneurship development. Government regulations for entrepreneurship have a direct effect on entrepreneurship development. More importantly, government regulations for entrepreneurship have a positive moderating effect between business start-up and entrepreneurship development. Our study identifies the critical resources needed to improve the quality of business incubators and to ensure the availability of such resources to improve entrepreneurship development.

https://www.mdpi.com/2071-1050/12/5/1822/pdf

Role of Business Incubators as a Tool for Entrepreneurship Development: The Mediating and Moderating Role of Business Start-Up and Government Regulations

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9381944

Working capital management of SMEs in COVID-19: role of managerial personality traits and overconfidence behavior

Behavioral Biases of Mutual Fund Investors

Article history: Received March 3, 2018 Received in revised format June 11 2018 Accepted July 3 2018 Available online July 4 2018 Investors’ decision-making are influenced by certain biases as reported in literature. Fundamental analysis is based on the assumption that investors think rationally, but in practice, things may be different. This study captures the impact of herding behavior and overconfidence biases on the investors’ decision-making in Pakistan. The proposed study collects the necessary data through questionnaires distributed among 150 respondents who were active in stock market and manage to process 100 completed ones. The relationships between investors’ decision-making and herding behavior as well as overconfidence biases were empirically tested using Ordinary Least Square (OLS) method. The results show that Pakistani investors’ decisions were significantly influenced by both herding behavior and overconfidence biases.

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Impact of herding behavior and overconfidence bias on investors’ decision-making in Pakistan

The study, conducted with the aim to find out the mediating role of consumer buying behaviour. 68.5 percent respondents represent the young generation of the country, 36 percent students participated in the response. As per results, 46 percent respondents’ family contain 1-5 members. 567 respondents represents the population of Pakistan. Smart PLS 3.2.7 has been used in the study. In order to measure scale and model bootstrapping, Algorithm, Fornell and Larker criterion (Discriminant Validity) and HTMT (sensitivity of multicollinearity) ratio has been used along with rule of thumbs set of scholars related to results founded. Study filled the gap of mediation of CBB. Research findings involve a direct relationship of price with customer satisfaction. Positive relationship between price and consumer buying behaviour, and positive mediating role of consumer buying behaviour between price and customer satisfaction.

Impact of Price on Customer Satisfaction: Mediating Role of Consumer Buying Behaviour in Telecom Sector

The aim of the present study was to examine the effect of perceived positive styles of leadership, that is, transformational and transactional leadership, on job involvement of 250 teachers (men = 146, women = 104) from public and private sector colleges and universities of the Punjab province. Multifactor Leadership Questionnaire (Bass and Avolio, 1994) and Job Involvement Scale (Kanungo, 1982) were used to measure study variables. Analysis revealed that both transformational and transactional leadership styles and their subfacets had significant positive relation to job involvement. The results of multiple regression showed that two subfacets of transformational leadership that is, Idealized Influence (attributed) and Intellectual Stimulation and two subfacets of transactional leadership, that is, Contingent Reward and Management by Exception (active) were positive predictors of job involvement among teachers whereas Management by Exception (passive) was a negative predictor of job involvement. Furthermore, the study also found that transactional leadership style was the stronger predictor of job involvement as compared to the transformational leadership style. Nonsignificant differences in terms of gender were observed among teachers for effects of leadership styles on their job involvement.

Leadership Styles as Predictors of Job Involvement in Teachers

Happiness at the workplace is an important ingredient in improving productivity at any organization. This study, therefore, sought to examine the effect of employee job satisfaction on employee’s happiness at work among telecommunication workers in Pakistan. The study was anchored on the motivation theory and includes some factors that influence motivation at the work place. The motivational factors include job inspiration, job security, benefits/salary, work environment and leadership. These motivational factors are expected to influence the dependent variable (happiness at work) through a mediating variable (employee job satisfaction). Employee job satisfaction functioning as an independent variable is also expected to influence the exogenous variable (happiness at work). Data for the study was obtained from a sample of 515 telecoms workers from Pakistan using a structured questionnaire. The data was analyzed through Structural Equation Modeling via SPSS 22 and SmartPLS 3.0. Findings from this study indicate factors that determine or influence employees' job satisfaction are job inspiration, benefits, job security, and leadership in that order. The study further found a positive and significant relationship between the independent variables (job inspiration and benefits) and employee job satisfaction. Also, the study found that employee job satisfaction has a positive and significant influence on happiness at work. The study builds on the empirical findings on factors influencing employee job satisfaction by linking it with happiness at work in the telecoms sector This study contributes to the extant literature on happiness at work and makes valuable contribution to future research in this area.

/pdf/mediated-effect-of-employee-job-satisfaction-on-employees-1urp5pxgmt.pdf

Mediated Effect of Employee Job Satisfaction on Employees’ Happiness at Work and Analysis of Motivational Factors: Evidence from Telecommunication Sector

In general, all types and sizes of organizations are responsible for the degradation of the environment. However, manufacturing companies are considered one of the most significant sources of environmental pollution and are pressured to adopt practices to mitigate environmental degradation. Therefore, this research explores the direct and indirect effects of green human resource management (GHRM) on the Chinese manufacturing firm’s environmental performance. To this end, we share a closed-ended questionnaire via a web-based survey to collect data from 306 employees. Data analysis was performed using partial least square structural equation modeling techniques (i.e., PLS algorithm, bootstrapping, and blindfolding). Our research finds a positive and significant effect of GHRM on employee and firm environmental performance. In addition, this research evidenced a partial mediation of employee environmental performance. Moreover, our study evidenced that the effect of GHRM on employee environmental performance will be more substantial when there is more involvement of employees’ environmental orientation. This study suggests that manufacturing companies must incorporate GHRM practices, promote green behaviors, respect individual environmental values, and encourage employees to implement those practices for the betterment of firms and the natural environment.

Rana Yassir Hussain

Papers

Impact of herding behavior and overconfidence bias on investors’ decision-making in Pakistan

Impact of Price on Customer Satisfaction: Mediating Role of Consumer Buying Behaviour in Telecom Sector

Leadership Styles as Predictors of Job Involvement in Teachers

Mediated Effect of Employee Job Satisfaction on Employees’ Happiness at Work and Analysis of Motivational Factors: Evidence from Telecommunication Sector

A mediated–moderated model for green human resource management: An employee perspective