The Mediating Role Of Attitudes In Trading Companies’ Shares
The survival of publicly listed companies largely depends on their shares being liquidly traded. This goal can be achieved when new investors are attracted to trade on companies’ shares. Among different groups of investors, individual investors are generally less able to objectively evaluate companies’ risks and returns, and tend to be emotionally biased in their trading decisions. Therefore their decisions may be formed as a result of ‘perceived’ risks and returns, and influenced by companies’ images. This study finds that ‘attitude towards brand’ mediates moderately the relationships between its perceptual antecedents and individual investors’ trading decisions. This finding suggests that in courting individual investors, companies may adopt adequate marketing strategies to leverage with their current financial performance as such strategies should enhance their images that attract investors to trade on their shares.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jansen, W. Jos & Nahuis, Niek J., 2003.
"The stock market and consumer confidence: European evidence,"
Elsevier, vol. 79(1), pages 89-98, April.
- W. Jos Jansen & Niek J. Nahuis, 2002. "The Stock Market and Consumer Confidence: European Evidence," MEB Series (discontinued) 2002-11, Netherlands Central Bank, Monetary and Economic Policy Department.
- Fox, Craig R & Tversky, Amos, 1995. "Ambiguity Aversion and Comparative Ignorance," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 585-603, August.
- Huberman, Gur, 2001. "Familiarity Breeds Investment," Review of Financial Studies, Society for Financial Studies, vol. 14(3), pages 659-80.
- Brad M. Barber & Terrance Odean, 2001. "Boys Will Be Boys: Gender, Overconfidence, And Common Stock Investment," The Quarterly Journal of Economics, MIT Press, vol. 116(1), pages 261-292, February.
- John R. Graham & Campbell R. Harvey & Hai Huang, 2009.
"Investor Competence, Trading Frequency, and Home Bias,"
INFORMS, vol. 55(7), pages 1094-1106, July.
- John R. Graham & Campbell R. Harvey & Hai Huang, 2005. "Investor Competence, Trading Frequency, and Home Bias," NBER Working Papers 11426, National Bureau of Economic Research, Inc.
- Frieder, Laura & Subrahmanyam, Avanidhar, 2005. "Brand Perceptions and the Market for Common Stock," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 40(01), pages 57-85, March.
- Massa, Massimo & Simonov, Andrei, 2004.
"Hedging, Familiarity and Portfolio Choice,"
SIFR Research Report Series
21, Institute for Financial Research.
- Jonas Nilsson, 2008. "Investment with a Conscience: Examining the Impact of Pro-Social Attitudes and Perceived Financial Performance on Socially Responsible Investment Behavior," Journal of Business Ethics, Springer, vol. 83(2), pages 307-325, December.
- Vogelheim, Paul & Schoenbachler, Denise D. & Gordon, Geoffrey L. & Gordon, Craig C., 2001. "The importance of courting the individual investor," Business Horizons, Elsevier, vol. 44(1), pages 69-76.
- Jeffrey R. Brown & Zoran Ivkovich & Paul A. Smith & Scott Weisbenner, 2007.
"Neighbors Matter: Causal Community Effects and Stock Market Participation,"
NBER Working Papers
13168, National Bureau of Economic Research, Inc.
- Jeffrey R. Brown & Zoran Ivkovic & Paul A. Smith & Scott Weisbenner, 2008. "Neighbors Matter: Causal Community Effects and Stock Market Participation," Journal of Finance, American Finance Association, vol. 63(3), pages 1509-1531, 06.
- Ritter, Jay R., 2003. "Behavioral finance," Pacific-Basin Finance Journal, Elsevier, vol. 11(4), pages 429-437, September.
- Yoav Ganzach & Shmuel Ellis & Asya Pazy & Tali Ricci-Siag, 2008. "On the perception and operationalization of risk perception," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 3, pages 317-324, April.
When requesting a correction, please mention this item's handle: RePEc:grg:01biss:v:3:y:2011:i:1:p:57-73. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (editor)
If references are entirely missing, you can add them using this form.