This study investigates investment behavior of Taiwan market participants from different aspects of measure, especially with regard to their tendency to forming herding behavior. By applying concepts of Cross-Sectional Absolute Dispersions (CSAD), we find significant evidence of herding behavior in the Taiwan market. Evidences suggest that the herding formation in Taiwan market is strongly influenced by the US market and we should not ignore the impact of globalization. With regard to the issue of financial crises, we find no herding behavior during the 1998 Asian Crisis but partial evidence shows that herding activities may be influenced by crisis during the 2000 Internet Bubble and 2008 Sub-prime Crisis in the Taiwan market. Moreover, all empirical results are reexamined using Quantile analysis to avoid potential bias in estimations. Finally, results from applying herding behavior in portfolio management indicate that investing in stocks of lower liquidity and volatility can reduce the risk of portfolios.

The subprime mortgage of America caused the global financial crisis. Most invest bankers and brokers were hurt deeply by the financial crisis. Due to the collapse of the financial system, the value of the investor¡¦s assets reduced rapidly. Those investors who invest in the mutual funds are exposed to the high risk. The mutual fund investors become the victims of the herding behavior. People invest in the hot investment market like Brazil, China, Russia etc.. The undue sales of the variable universal life (VUL) and the structure notes have destroyed the faith relationship between the investors and the financial consultants. However, the financial consultants did not show up the investment risk entirely in the process of sales. Therefore the investors neglected the risk which they could bear. For this reason, the risk of their investment behavior also exceeded the limit. Consequently, we discuss the change of the investors¡¦ investment behavior and risk preference of the mutual fund investors.

Název / Title Eseje o rozhodování pod stresem / Essays on Decision Making under Stress Student PhDr. Lubomír Cingl Studijní program / Study program Ekonomické teorie Školitel / Advisor PhDr. Michal Bauer, Ph.D. Abstract This dissertation comprises three thematically connected experimental studies of human behavior under non- standard conditions: time-pressure and stress. In the Introduction section I present the argument for why it is important for economists to recognize stress research as a valid part of the research in economics and how it can contribute to the growing knowledge of human behavior in general, including several examples from the literature. The first paper presented in Chapter 2 examines the effect of time pressure on the individual propensity to herd, while the remaining two papers examine the effect of acute stress on risk-preferences and herding behavior, respectively. Herding behavior is a very important phenomenon in human decision making since social influence is very frequent in our lives and economic decisions: consider traders in financial markets, wait-and-see investors, but also purchase behavior due to fads, fashion and top-ten lists. Risk preferences are another essential factor which determines many important economic outcomes, and the assumption of their stability is a...

Background: Kahneman and Tversky (1974, 1979 & 1992) argue that individuals are bound to numerous behavioral biases that may lead to the emergence of different irrational behaviors. This is often observed with even a higher degree among participants of financial and stock markets as agents such as investors are frequently exposed to significant level of risk and uncertainty (Kahneman, 2013; Kahneman, Knetsch & Thaler, 1991; Kahneman & Tversky, 1974, 1979, 1992). Also, empirical studies indicate that a significant level of herding exists among investors when they are exposed to a high degree of risk and uncertainty such as those in financial crises (Galariotis, Rong & Spyrou, 2014; Litimi, 2017; Hott, 2009). Purpose: the main purpose of this thesis is to explore if the loss aversion bias has a significant causal impact on forming herding behavior among young Swedish retail investors. Method: an online analytical questionnaire including eight questions has been conducted to collect primary data, with 77 Swedish retail investors under the age of 35 participating in the study. Furthermore, a multiple regression analysis has been implemented to analyze and interpret the data. Conclusion: it can be concluded that there is not a significant correlation between the degree of loss aversion and the degree of herding behavior within the sample group of young Swedish retail investors. Hence, loss aversion bias cannot be considered as one of the major contributors of herding within the target population.

Social trading platforms are an increasingly popular venue for sharing investment ideas. We investigate if followers on these platforms herd, i.e., copy leader traders’ trades, to the extent that it affects stock markets. To do so, we use an event study to detect abnormal returns and trading volume after a trade is conducted by a leader trader. Furthermore, we investigate if the leader trader’s sentiment on the stock and the leader trader’s perceived trustworthiness have explanatory power over the herding behavior. We find signs of herding in terms of abnormal returns within thirty-minutes after the leader trader’s trade. However, we do not find signs of herding for longer event windows, nor do we find that the sentiment of the leader trader can explain herding. Finally, we find some signs that affect-based signals of trustworthiness can explain herding. However, most signals of trustworthiness are non-significant.

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Background: The emerging cryptocurrency market becomes more and more recognized around the globe. Therefore, it has become of great interest to policymakers, institutional investors, and individual investors. The new encrypted blockchain technology offers individual investors contemporary opportunities to invest contrary to traditional means. However, the volatile market presents instabilities and uncertainty for market participants creating a research gap for academics to investigate what poses these difficulties.  Purpose: The objective of the study is to investigate the determinants that affect individual investors' adoption intention of Bitcoin. By incorporating theories to understand investment behaviors and attitudes.  Methodology: The thesis utilized a quantitative methodology and collected data through an online questionnaire with the help of a Likert-scale instrument. The survey participants ended with a number of 114 respondents that are characterized as young adult investors. Interpretation and evaluation of the results were analyzed through an OLS linear regression with the help of a software program, Minitab.  Findings: Theresearchquestionwasansweredtoasatisfactorylevel,whereresultsattested to past works of literatures. The study found that consumer characteristic is a driving cause for individual investors' adoption intention of Bitcoin. To elaborate, subjective norms of individuals navigate their attitude towards Bitcoin, and investors’ peers’ opinions and acceptance play a crucial role in their engagement in the market. The herding trend was the most significant variable that contributed to investors’ adoption intention. The results also showed a significant correlation toward the technology acceptance model. Nonetheless, the study lacked empirical evidence to support market characteristics steering private investors’ adoption intention.  Implications & Future Research suggestions: The main implications of the study were factors that regarded data collection and methods. Due to a time limitation, the survey was not available for a longer period of time, a longitudinal study could be of interest whilst incorporating more consumer characteristics into the analysis. In addition, future scholars ought to focus on market characteristics and how they influence varying cryptocurrencies such as Ethereum and Tether alongside Bitcoin. To conclude, a larger scope of the study could bring about more significant results and interesting findings.

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本文利用投信公司公佈之基金持股比例及持股內容明細，分析基金經理人的操作行為以及和股市股價指數的互動關係。研究主題有二： 　　一、群集效果的研究，從持股內容的分析來研究「基金經理人在操作基金時是否有群集行為」。 　　二、研究共同基金對國內股市的影響，探討「共同基金平均持股比例和股價指數間的因果關係及相關性」。 　　實證結果如下： 　　一、國內的基金經理人在操作時有明顯的群集行為（效果）。 　　二、台灣證券交易所股價指數和基金平均持股比例兩者間，不論是當期對當期，或是股價指數落後一週至十週的檢定，皆為顯著的正相關。 　　三、若以八個分類股價指數及對應之基金平均持股來看，塑化、機電、紡織、造紙、營建、金融股的11個檢定值皆為顯著正相關。水泥股及食品股的11個值則皆為顯著負相關。

In december 2019, the first cases of covid-19 were reported in Wuhan, China. Since then, the virus has spread rapidly around the world. In order to try to stop the spread of the virus, isolation has become actual. Except affecting the public health, the virus has caused deep traces in the global economy. A clear stock market fall on the Swedish stock exchange could be observed in February-March 2020. The financial crisis that has arisen is the first crisis many of the young investors, of the age 18–30 years old have to manage. Due to the economic crisis that has arisen, this study aimed to describe young investors' decision-making in the financial market during the period 1 January 2020 to 5 May 2020. The research question goes as follows: What factors influence young investors' decision-making in the financial market during an economic crisis? The study was conducted on the basis of the Theory of Behavioral Finance. This theory assumes that the individual's decision-making in the financial market is largely influenced by emotions and other psychological factors. Furthermore, the theory is based on a number of different assumptions about human psychological and behavioral phenomena that influence investment decisions. The procedure for conducting the study was to make a descriptive quantitative study. This meant that a questionnaire was passed on to young investors and that the answers were then compiled in diagrams and tables. The results indicated that the factors overconfidence, representativeness bias and anchoring bias seemed most likely to describe young investors' decision-making in the financial market during an economic crisis. At the same time, a reasonable interpretation seemed to be that herding behavior and risk and loss aversion cannot describe the young investors' decision-making to a large extent. The importance of mental accounting could not be determined in this context, as the answers received provided an incomplete basis for deciding this. To be able to draw conclusions about the role of mental accounting in decision-making, several issues that dealt with this would have been useful. One suggestion for continued research is to study other factors that may underlie young investors' decision-making during an economic crisis.