IDEAS home Printed from https://ideas.repec.org/a/spr/fininn/v1y2015i1d10.1186_s40854-015-0011-8.html
   My bibliography  Save this article

The information content of financial survey response data

Author

Listed:
  • J Christopher Westland

    (Information & Decision Sciences, University of Illinois)

Abstract

Market data for financial studies typically derives from either historical transactions or contemporaneous surveys of sentiment and perceptions. The research communities analyzing data from these opposing categories of source data see themselves as distinct, with advantages not shared by the other. This research investigates these latter claims in an information theoretic context, and suggests where methods and controls can be improved. The current research develops a Fisher Information metric for Likert scales, and explores the effect of particular survey design decisions or results on the information content. A Fisher Information metric outperforms earlier metrics by converging reliably to values that are intuitive in the sense that they suggest that information captured from subjects is fairly stable. The results of the analysis suggest that varying bias and response dispersion inherent in specific surveys may require increases of sample size by several orders of magnitude to compensate for information loss and in order to derive valid conclusions at a given significance and power of tests. A prioritization of quality of design, and the factors relevant to survey design are presented in the conclusions, and illustrative examples provide insight and guidance to the assessment of information content in a survey.

Suggested Citation

  • J Christopher Westland, 2015. "The information content of financial survey response data," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 1(1), pages 1-20, December.
    • Handle: RePEc:spr:fininn:v:1:y:2015:i:1:d:10.1186_s40854-015-0011-8
    DOI: 10.1186/s40854-015-0011-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40854-015-0011-8
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40854-015-0011-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Merton H. Miller, 2000. "The History Of Finance: An Eyewitness Account," Journal of Applied Corporate Finance, Morgan Stanley, vol. 13(2), pages 8-14, June.
    2. V. Srinivasan & Amiya K. Basu, 1989. "The Metric Quality of Ordered Categorical Data," Marketing Science, INFORMS, vol. 8(3), pages 205-230.
    3. -, 1974. "Economic survey of Latin America 1974," Estudio Económico de América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1081 edited by Naciones Unidas.
    4. N/A, 1974. "Chapter I. The Home Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 69(1), pages 7-28, August.
    5. N/A, 1974. "Chapter I. The Home Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 68(1), pages 9-45, May.
    6. -, 1974. "Economic survey of Latin America, 1973," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 30706, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    7. Kuhberger, Anton & Schulte-Mecklenbeck, Michael & Perner, Josef, 1999. "The Effects of Framing, Reflection, Probability, and Payoff on Risk Preference in Choice Tasks, ," Organizational Behavior and Human Decision Processes, Elsevier, vol. 78(3), pages 204-231, June.
    8. N/A, 1974. "Chapter III. The Home Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 67(1), pages 31-48, February.
    9. Cochrane, Willard W. & Dahl, Reynold P. & Houck, James P. & Christiansen, Martin K. & Thomas, Kenneth H. & Hawkins, Richard O. & Waeti, John J. & Sundquist, W. Burt, 1974. "Minnesota Agricultural Economist No. 553," Minnesota Applied Economist\Minnesota Agricultural Economist 163664, University of Minnesota, Department of Applied Economics.
    10. Kuhberger, Anton & Schulte-Mecklenbeck, Michael & Perner, Josef, 2002. "Framing decisions: Hypothetical and real," Organizational Behavior and Human Decision Processes, Elsevier, vol. 89(2), pages 1162-1175, November.
    11. Phoebus J. Dhrymes & E. Philip Howrey & Saul H. Hymans & Jan Kmenta & Edward E. Leamer & Richard E. Quandt & James B. Ramsey & Harold T. Shapiro & Victor Zarnowitz, 1972. "Criteria for Evaluation of Econometric Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 1, number 3, pages 291-324, National Bureau of Economic Research, Inc.
    12. Gupta, Y P, 1969. "Least Squares Variant of the Dhrymes Two-Step Estimation Procedure of the Distributed Lag Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(1), pages 112-113, February.
    13. anonymous, 1974. "The economy in 1973," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jan, pages 1-14.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brzozowicz Magdalena, 2018. "Hypothetical bias and framing effect in the valuation of private consumer goods," Central European Economic Journal, Sciendo, vol. 5(52), pages 260-269, January.
    2. Guido Baltussen & G. Post & Martijn Assem & Peter Wakker, 2012. "Random incentive systems in a dynamic choice experiment," Experimental Economics, Springer;Economic Science Association, vol. 15(3), pages 418-443, September.
    3. Brockmeier, M., 1992. "Qualität als Bestimmungsgrund für den Handel mit Ernährungsgütern," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 28.
    4. Dorian Jullien, 2013. "Asian Disease-type of Framing of Outcomes as an Historical Curiosity," GREDEG Working Papers 2013-47, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    5. Jeffrey Nugent, 1975. "Policy-Oriented Macroeconometric Models for Development and Planning," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 4, number 4, pages 509-529, National Bureau of Economic Research, Inc.
    6. Borie, Dino & Jullien, Dorian, 2020. "Description-dependent preferences," Journal of Economic Psychology, Elsevier, vol. 81(C).
    7. Edwige Burdeau, 2015. "Assessing dynamics of credit supply and demand for French SMEs, an estimation based on the Bank Lending Survey," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Indicators to support monetary and financial stability analysis: data sources and statistical methodologies, volume 39, Bank for International Settlements.
    8. Bernard, Jean-Thomas & Idoudi, Nadhem & Khalaf, Lynda & Yelou, Clement, 2007. "Finite sample multivariate structural change tests with application to energy demand models," Journal of Econometrics, Elsevier, vol. 141(2), pages 1219-1244, December.
    9. Hendry, David F. & Clements, Michael P., 2003. "Economic forecasting: some lessons from recent research," Economic Modelling, Elsevier, vol. 20(2), pages 301-329, March.
    10. Atasi Basu & Randal Elder & Mohamed Onsi, 2012. "Reported earnings, auditor's opinion, and compensation: theory and evidence," Accounting and Business Research, Taylor & Francis Journals, vol. 42(1), pages 29-48, March.
    11. Oppong, Christine., 1982. "Familial roles and fertility: some labour policy aspects," ILO Working Papers 992215393402676, International Labour Organization.
    12. Wardley, Marcus & Alberhasky, Max, 2021. "Framing zero: Why losing nothing is better than gaining nothing," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
    13. Lefebvre, Mathieu & Vieider, Ferdinand M. & Villeval, Marie Claire, 2010. "Incentive effects on risk attitude in small probability prospects," Economics Letters, Elsevier, vol. 109(2), pages 115-120, November.
    14. Joost M. E. Pennings & Ale Smidts, 2003. "The Shape of Utility Functions and Organizational Behavior," Management Science, INFORMS, vol. 49(9), pages 1251-1263, September.
    15. Dufwenberg, Martin & Gächter, Simon & Hennig-Schmidt, Heike, 2011. "The framing of games and the psychology of play," Games and Economic Behavior, Elsevier, vol. 73(2), pages 459-478.
    16. Emmanuel Kemel & Corina Paraschiv, 2018. "Deciding about human lives: an experimental measure of risk attitudes under prospect theory," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 51(1), pages 163-192, June.
    17. Kuhberger, Anton & Komunska, Dagmara & Perner, Josef, 2001. "The Disjunction Effect: Does It Exist for Two-Step Gambles?," Organizational Behavior and Human Decision Processes, Elsevier, vol. 85(2), pages 250-264, July.
    18. He, Jiaxiu & Wang, Xin (Shane) & Curry, David J., 2017. "Mediation analysis: A new test when all or some variables are categorical," International Journal of Research in Marketing, Elsevier, vol. 34(4), pages 780-798.
    19. Anastassiadis, Friederike & Liebe, Ulf & Musshoff, Oliver, 2012. "Finanzielle Flexibilität In Landwirtschaftlichen Investitionsentscheidungen: Ein Discrete Choice Experiment," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137142, German Association of Agricultural Economists (GEWISOLA).
    20. repec:cup:judgdm:v:11:y:2016:i:5:p:424-440 is not listed on IDEAS
    21. Susan G. Low, 2015. "Signal Grass ( Brachiaria decumbens ) Toxicity in Grazing Ruminants," Agriculture, MDPI, vol. 5(4), pages 1-20, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:fininn:v:1:y:2015:i:1:d:10.1186_s40854-015-0011-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.