This study focused on scrutinizing the influence of Enterprises Risk Management (ERM) on firm performance with a mediating role of Business Model Innovation (BMI). For the purpose, data from 228 Jordanian firms was collected and analyzed. The results indicated that the ERM practices have a significant influence on BMI and financial firm’s performance. The BMI significantly contributed to the financial and nonfinancial performance, whereas it displayed insignificant effects regarding environmental performance. The BMI fully mediated the relationship between ERM practices and financial performance, where a partial mediating effect was observed for the path between ERM practices and nonfinancial performance, while showed no mediating role between the ERM practices and environmental performance. Economies of countries like Jordan are hereby urged to implement the formal ERM practices and to financially educate their top management teams to apply the BMI to gain first-rate performance. This study also encourages the researchers from other countries to extend this model to their economies to unleash useful insights.

https://www.econstor.eu/bitstream/10419/239529/1/1751436993.pdf

Risk Management Practices and Firm Performance with a Mediating Role of Business Model Innovation. Observations from Jordan

This research aims to examine the model of investor herding behavior in making investment decisions in the Indonesian capital market, which is influenced by social and information impacting on the value of the Book Value Per Share (BVPS). The latest stock market conditions show that most investors make the same error pattern in making investment decisions that result in losses. The experiment involves two independent variables, namely, information about BVPS and social influence. This study used a 2x2 factorial design laboratory experimental method. Data collection was carried out through treatment of a sample of 100 individual investors listed on the Indonesia Stock Exchange. Univariate Two-Way Analysis of Variance (ANOVA) statistical tool was used to test the independent variable on the dependent variable. Research results showed that the social influence originating from expert investors is more influential than the Book Value Per Share (BVPS) information on the behavior of herding investors in making investment decisions. These findings suggest that investors know their psychological factors, thereby increasing self-control and investment analysis skills. Further research can use psychological bias and other indicators of accounting relevant information such as Earning Per Share (EPS) to test herding behavior in investment decision making in the capital market.

https://www.koreascience.or.kr:443/article/JAKO202100569380273.pdf

Herding Behavior Model in Investment Decision on Emerging Markets: Experimental in Indonesia

Penelitian ini dilakukan untuk melihat dan mempelajari faktor faktor perilaku investor yang dapat mempengaruhi keputusan investasi seseorang dalam bentuk saham di Bursa Efek Indonesia.  Data untuk penelitian diambil dari hasil survey kepada 422 investor ritel di Bursa Efek Indonesia yang disebar melalui media online. Analisa penelitan menggunakan analisa kuantitatif dan berlandaskan teori-teori perilaku keuangan yang terdiri dari perilaku sentimen investor, perilaku terlalu percaya diri, perilaku reaksi over/under , perilaku herd dan persepsi risiko. Dari hasil penelitian diperoleh hasil bahwa keputusan investasi dari seorang investor dipasar saham sangat dipengaruhi oleh perilaku-perilaku yang diteliti diatas kecuali perilaku terlalu percaya diri yang tidak terlalu berpengaruh terhadap keputusan investasi. Berdasarkan hasil penelitian ini diharapkan dapat membantu para pelaku pasar memahami perilaku investor saham ritel di Bursa Efek Indonesia. Penulis juga berharap agar hasil penelitian ini dapat dijadikan sebagai bahan referensi dan penunjang dalam upaya mengembangkan pasar saham di Indonesia.

/pdf/pengaruh-faktor-perilaku-investor-saham-terhadap-keputusan-3e5o90allc.pdf

Pengaruh Faktor Perilaku Investor Saham Terhadap Keputusan Investasi di Bursa Efek Indonesia

The main purposes of this quantitative study were to examine the existence of herding behavior among investors in Amman stock exchange (ASE) at market and sector level in addition to testing the behavior during the market rising and falling and examining whether the behavior existence is different before and after the global financial crisis of 2008. The theoretical base of the study was the behavioral finance which assumes that investors are not completely rational and they may follow others when taking investment decisions. The main enquires of the study were about the existence of herding in the Jordanian market, whether it's affected by conditions of market rising and falling, and whether it's affected by the financial crisis. A quantitative design was employed to achieve the purposes of this study which covers the period 2000 - 2018. Data were obtained from ASE website and analyzed using ordinary least squares method. The results indicated that herding is absent in the Jordanian market if tested at market level while it exists in services and industrial sectors if tested at sectors level. The financial crisis did not affect the presence of herding at market level while it did affect the behavior in services and industrial sectors. Moreover, the results revealed that market condition of rising and falling affected herding at market level but not at sectors level. It is also concluded that the global financial crisis changed the presence of herding behavior during conditions of rising and falling in market and in each sector.

/pdf/testing-sectoral-herding-in-the-jordanian-stock-market-l50ad1zhy8.pdf

Testing Sectoral Herding in the Jordanian Stock Market

This paper aims to analyse the factors affecting SMEs’ capital structure decisions with a comparative analysis covering SMEs of different sizes in Turkey from 2007 to 2018. According to the study r...

Factors influencing SMEs’ capital structure: a comparative analysis from Turkey

This study aims to explore the impact of a number of prominent behavioral finance variables covered by the financial literature (overconfidence, loss aversion, risk perception and herding) that may affect the stock investment decision-making at Amman Stock Exchange (ASE), as well as determining which of these variables has the relative importance. The importance of this study stems from the fact that local studies focusing on the issue of behavioral finance are rare and therefore, the researchers expect that such study will enrich awareness in this domain. The study consisted of 165 individual investors who were active in the trading halls at Amman Stock Exchange during the research period. The data were collected through a questionnaire prepared for the purpose of research and were analyzed by applying multiple statistical tests (Multiple regression and Hierarchal regression analysis) and by using statistical software (SPSS) after approving the reliability and validity of the questionnaire. The results showed that there was an impact of the behavioral finance at Amman Stock Exchange represented by three behavioral factors affecting the investment decisions of the individual investors which were: overconfidence, loss aversion, and herding, the results also showed that the variable overconfidence had the most relative significance. The research provided some recommendations for investors trading at ASE to adopt scientific bases in making stock investment decisions, and suggested to conduct further research to study the impact of behavioral finance on the different types of risks and yields at ASE.

/pdf/impact-of-behavioral-finance-on-stock-investment-decisions-4279v9tsig.pdf

Yousef Satea Al-Alani

Papers

Impact of Behavioral Finance on Stock Investment Decisions Applied Study on a Sample of Investors at Amman Stock Exchange