• 유통과학연구
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• 제13권10호
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• pp.51-56
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• 2015

Purpose - This study examines Chinese P2P investment decision processes from a behavioral economics approach. Research design, data, and methodology - We analyze the online P2P investment product purchase decisions of 241 respondents in China, March 2015 to May 2015. T-tests were conducted to determine whether the framing effect influenced investor investment preferences. The Association Rule was used to identify the framing effect of respondent demographic characteristics on joint decisions regarding stable or risky investment products. Results - There are significant differences between the two groups (positive framing and negative framing) and their product-choosing behavior. In the positive framing group, female investors, young investors, investors with non-financial occupations and with limited or no experience, preferred stable P2P investment products. In contrast, in the negative framing group, investors with extensive investment experience preferred risky investment products. Conclusions - The framing effect influences investor choices in online P2P investment products. It is necessary to implement comprehensive supervision and full information disclosure regarding P2P investment products. P2P investment websites can also adopt different marketing strategies according to investor gender and age.

• The Journal of Asian Finance, Economics and Business
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• 제6권3호
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• pp.67-79
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• 2019

This study examines the impact of corporate governance on capital structure decisions based on a large panel of Chinese listed firms. Using the system Generalized Method of Moments (GMM) estimator to control for unobserved heterogeneity, endogeneity, and persistency in capital structure decisions, we document that the ownership structure plays a significant role in determining leverage ratios. More specially, we find that managerial ownership has a positive and significant impact on firms' leverage, consistent with the incentive alignment hypothesis. We also find that managerial ownership only affects the leverage decisions of private firms in the post-2005 split share reform period. State ownership negatively influence leverage decisions implying that SOEs may face fewer restrictions in equity issuance and may receive favourable treatments when applying for seasoned equity ¿nancing, thus use less debt. Furthermore, our results show that while foreign ownership negatively influences leverage decisions, legal person shareholding positively influences firms' leverage decisions only for state controlled firms. We also find that the board structure variables (board size and the proportion of independent directors) do not influence firms' capital structure decisions. Our findings suggest that recent ownership reforms have been successful in terms of providing incentive to managers through managerial shareholdings to take risky financial choices.

• The Journal of Asian Finance, Economics and Business
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• 제8권4호
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• pp.787-796
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• 2021

This study investigates the effect of chief executive officers (CEO) demographic characteristics such as age, functional experience, education, and gender, on corporate leverage decisions. This study investigates the independent commissioner's role in moderating the relationship between CEO demographic characteristics and leverage decisions. The data used is panel data with a sample of 283 non-financial companies listed on the Indonesia Stock Exchange (BEI) from 2010-2017. Moderated regression analysis is used as an analytical technique, with the selected model fixed effects model. The results showed that male and young CEOs were more risk-averse, so they tended to use debt more. However, this study found no evidence of the effect of CEO experience and education on leverage. This study finds evidence that independent commissioners reduce the influence of CEO age and gender on leverage decisions. It shows the role of independent commissioners in controlling risk-taking from male and young CEOs related to leverage decisions. These results become input for companies to consider demographic characteristics in choosing a CEO. Also, companies need a board (in this study seen from independent commissioners) that is strong enough to control the CEO regarding risky decision making, such as leverage decisions.

• The Journal of Asian Finance, Economics and Business
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• 제7권2호
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• pp.99-106
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• 2020

CEOs Overconfidence can bring potentially risky early decisions to businesses, along with large enterprise free cash flow that can bring different investment decisions with CEOs Overconfidence. Especially in the context of Vietnamese enterprises, CEOs are often influenced by behavioral psychology about overconfidence in investment decisions (due to individual cultural characteristics as well as operating financial markets also depend on many factors outside the market). Therefore, the authors study the impact of overconfidence and cash flow on investment in Vietnamese to find the internal relationship between these three factors in the financial environment in Vietnam. With 480 companies listed on the Vietnam Stock Exchange from 2014 to 2018 (companies have continuous reports), the regression analysis results with panel data (FEM, GLS models, correction of robust and GMM dealing with endogenous problems) have shown Overconfidence has a positive impact on investment. At the same time, the results also indicated that enterprises with overconfident CEOs and large cash flows tend to invest less than enterprises with low cash flow. The results of this study have shown the behavioral behavior of CEOs in Vietnamese enterprises that exist under both prospect theory and effective market theory.

• The Journal of Asian Finance, Economics and Business
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• 제9권4호
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• pp.299-306
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• 2022

Entrepreneurs with behavioral finance biases are more likely to make irrational or financially detrimental decisions. Understanding financial behavior biases can assist in making sound financial decisions. Behavioral finance is a new topic that can assist researchers in better understanding investor behavior and preferences while purchasing and selling stocks. Using measures such as independent t-tests and average Likert five-point scale scores, this study seeks to determine how entrepreneurs make investment decisions and whether gender makes a difference. The study is empirical, and data from 1000 entrepreneurs were collected through convenience sampling. The study's main findings show that there are numerous factors to consider while investing in stocks, including family planning, children's education, investment security, and recurring income. Both men and women attempt to invest in many asset classes, but certain investments are extremely risky, while others are low risk. As a result, investors should assess risk based on their age and experience rather than their gender; this indicates that an investment in venture capital has nothing to do with gender but everything to do with the investor's age.

• 재무관리연구
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• 제9권1호
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• pp.223-262
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• 1992

보험수요자(保險需要者)로서의 개인이나 기업은 보험증권과 함께 은행 예금과 같은 무위험자산, 혹은 실물자산 자본자산과 같은 위험자산을 보유하고 있는 것이 보통이다. 본 논문은 보험 수요자가 보유하는 전체 포트폴리오의 맥락에서 최적보험수요(最適保險需要)를 분석하는 데 목적이 있다. 이 연구에서 설정(設定)한 분석규모(分析規模)에서는 기대효용가설(期待效用假說)(expected utility hypothesis)에 기초하여 무위험자산과 위험자산에 대한 수요를 보험수요와 동시에 고려하여 보험료(保險料)의 기회비용이 균형보험료(均衡保險料) 개념에 명백히 반영되게 하였다. 이 경우 보험계약은 재난 재해에 대한 위험관리(危險管理)(insurable risk management) 방법의 하나로써 다른 투자기회들과 함께 경쟁관계에서 전체 포트폴리오의 위험을 감소시키는 역할을 담당한다. 본 모형의 분석 결과는 기존의 보험경제학설과 다음과 같은 근본적인 상이점을 보이고 있다. 첫째로, 투자자의 효용함수가 일정절대위험회피(一定絶對危險回避)(CARA)일 경우, 투자위험(投資危險)(speculative risk)과 재산 재해위험(財産 災害危險) (insurable risk)이 확률적으로 상호의존 관계에 있더라도, 최적보험수요(最適保險需要)는 다른 투자기회들과 분리(分離)(separation)결정될 수 있음을 보였다. 그러나 일반적으로 재산 재해위험이 투자위험과 확률적으로 독립분포되어 있더라도, 보험과 투자간의 상호작용 때문에, 최적보험수요는 다른 투자기회들과 분리결정 될 수 없음을 보였다. 이 논문에서는 특별히, 무위험자산 혹은 위험자산에 대한 투자가 재산 재해(財産 災害)의 위험(危險)(insurable risk)을 헷징(hedging)하는 데 기여하는 고유한 역할을 규명하였고, 또 그 역할을 보험 계약에 의해 중복될 수 없는 것임을 보였다. 둘째로, 베르누이 원칙(Bernoulli Principle)을 재검토하여 기존의 베르누이 원칙이 본(本) 분석모형에서는 제한적으로 성립함을 보였다. 이 논문에서는 보다 일반적으로 베르누이 기준이 유지 혹은 위배되는 충분조건을 제시하였고, 그 조건을 전체 포트폴리오 위험에 대한 평균보지확산(平均保持擴散)(mean preserving spread)의 개념을 도입해 직관적으로 해석하였다. 전통적으로 베르누이 원칙은 보험시장 존재근거에 대해 가장 강력한 이론적 타당성을 부여해 왔으나, 이 논문의 분석결과는 보험수요자의 투자에 대한 기회비용이 보험가격 책정에 반영되지 않으면 보험시장이 붕괴할 수 있음을 시사해 주고 있다.

• 한국통계학회:학술대회논문집
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• 한국통계학회 2003년도 춘계 학술발표회 논문집
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• pp.43-48
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• 2003

We consider a consumption and investment problem where an investor's investment opportunity gets enlarged when she becomes rich enough, i.e., when her wealth touches a critical level. We derive optimal consumption and investment rules assuming that the investor has a time-separable von Neumann-Morgenstern utility function. An interesting feature of optimal rules is that the investor consumes less and takes more risk in risky assets if the investor expects that she will have a better investment opportunity when her wealth reaches a critical level.

• Asia Marketing Journal
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• 제18권3호
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• pp.35-46
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• 2016

According to previous literature, love involves a feeling of emotional bonds, attachment, and commitment to a specific target from a long-term perspective. In contrast, lust is defined as a sexual desire to engage in sexual activities from a short-term perspective. This research investigates the influence of feelings of love or lust on consumers' long-term benefit-seeking and risk-taking behaviors. Study 1 examined whether consumers' long-term benefit-seeking behaviors depend on feelings of love or lust. As a result, consumers who experienced feelings of love were more likely to prefer products that provide long-term benefits (e.g., a hybrid car) than those who experienced feelings of lust. Study 2 investigated consumers' risk-taking behaviors, depending on feelings of love or lust. The results showed that consumers in the lust condition were more willing to take a risk (e.g., a trip to a hazardous area) than those in the love condition. Taken together, this research demonstrates that consumers' long-term benefit-seeking and risk-taking behaviors depend on feelings of love or lust. Practical and theoretical implications are further discussed.

• Journal of East Asia Management
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• 제1권1호
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• pp.1-27
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• 2020

Military experience has a great impact on a soldier ability to handle risks. Therefore, when those soldiers become managers, they may behave differently in making risky corporate decisions, especially in activities like the R&D investment. However, studies on how military experience affect R&D have been largely missing in the largest emerging economy, i.e. China, despite that the country hires a higher percentage of military managers than the US. In addition, it remains a question whether military managers affect the state-owned enterprises (SOEs) in China, as many of the corporate decisions are made by the government. This paper tries to address these questions. The imprinting theory and the upper echelon theory suggest that managers' personal experience can affect their behaviour, which in turn influences their corporate decisions. In this paper, we examine whether managers with military experience lead to higher R&D investment and whether such an effect exists in state-owned enterprises. Based on a sample of listed firms in China's A-share market over 2008-2017, we make two findings. First, companies with military managers have high R&D investment. By dividing managers' military positions into high and low rank, we find that companies tend to have higher (lower) R&D investment if their managers hold a high-rank (low-rank) position. Second, the effect of high-rank military managers on R&D investment is more pronounced if the manager is also the founder and the company is a non-state-owned enterprise. For low-ranking military managers, a stronger effect on R&D investment is also observed if they are also the founder, but whether their companies are state-owned or not has no impact on R&D investment. This study identifies managers' military experience as a contributing factors to corporate R&D investment in the largest emerging economy. This paper tests an implication of the imprinting theory and the upper echelon theory, i.e., managers' personal experience can affect their behaviour, which in turn influences their corporate decisions. Specifically, we focus on one aspect of personal experience - military experience - and look at whether it is beneficial to firms' technological innovation, therefore enriches the literature of managerial heterogeneity. Our findings on the influence of managers' military experience on firms' technological innovation can help us better understand the role of managers play in corporate decision making, and how managers' individual traits interact with the firm's characteristics.

• 한국항해항만학회지
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• 제33권7호
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• pp.469-476
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• 2009

Recent collapse of shipping market right after unprecedent surge clearly demonstrates that shipping industry is extremely risky. Due to the volatile movements of the freight rates, investors tend to ask higher rate of return; higher required return reduces the total net present value of the investment project. For several decades, the Discounted Cash Flow(DCF hereafter) analysis has been the most frequently used valuation technique. However, the main problem of the DCF analysis is its assumption that the discount rate would stay the same during the project life. In other words, it usually does not address the decisions that managers have after a project has been accepted. The purpose of this study is investigate a new valuation method of investment: the Real Option Analysis(ROA hereafter) on ship investment. By replacing the existing valuation methods with the new one, the research will present a new perspective on investment with uncertainty. While uncertainty increases risk of investment and consequently discounts the value of it in the traditional feasibility analysis, in the ROA, a new valuation method which will be addressed in the research, uncertainty means some additional value of flexibility so that the tool can help investors produce more accurate decisions. Contrary to the DCF analysis, the ROA takes managerial flexibilities into account. In reality, capital budgeting and project management is typically dynamic, rather than static in nature. The ROA finds and assesses the values of managerial flexibilities or real options in the investments. The main structures of the research will be as follows: (1) overview of the ship investment project, (2) evaluation of the project by the Net Present Value analysis, (3) evaluation of the same project by the Real Option Analysis, (4) comparision of the two techniques.