På aktiemarknaden finns det stora mängder kapital och en ansenlig del av detta kapital förvaltas aktivt av professionella fondförvaltare. Att psykologiska aspekter kan påverka beslut gällande investeringar är känt genom tidigare forskning, men huruvida professionella investerare påverkas av det vid investeringsbeslut är mindre känt. Studien syftar till att undersöka vilken påverkan de psykologiska fallgroparna disposition effect och herding har på förvaltare på svenska fondbolag. I undersökningen har åtta institutionella fondförvaltare deltagit och genom semistrukturerade intervjuer har ett antal teman fångats upp för att sedan analyseras. Utifrån den insamlade datan och efterföljande analys uppvisade förvaltarna tendenser till att falla för vissa aspekter av de psykologiska fallgroparna. Den fallgrop som studien fann starkast stöd för hos förvaltarna var benägenhet att falla i disposition effect, de tenderar att hålla sina förlorare för länge medans de släpper sina vinnare för tidigt.

Young investors tend to exhibit a lower level of financial literacy which has a negative impact on their investment decisions. The level of financial literacy a person has therefore plays a major role and can be crucial for an investor's ability to make rational and sound financial decisions. An investor's investment decision can be influenced in many ways, but mainly psychological factors come into play. There is a clear difference between younger and older generations of investors. Previous studies show signs of riskier behavior among the younger generation, and there are therefore questions about how they will characterize their investing. The aim of the study is to describe and analyze Generation Z's level of financial literacy and attitude towards risk on the stock market This study has applied a quantitative research method in the form of a questionnaire. The questionnaire was divided into two sections. Each section contained questions that were used to answer selected subcategories within financial literacy and financial behavior. The financial behavior category was made up of different “bias” in accordance with the Behavioral finance theory. The study found that the respondents within Generation Z possessed a high level of financial literacy and exhibited long-term saving behavior. No overrepresented risk behaviors were found for the generation in question.

[pt] Esse estudo apresenta o modelo de negócios de multi-family offices e propõe uma abordagem prescritiva específica para a elaboração e manutenção de portfolios de investimentos, com objetivo de torna-los mais eficientes em servir os interesses de seus clientes. O aconselhamento financeiro – atividade central destas empresas – tem por essência guiar os clientes a tomarem decisões melhores. Para esse fim, a abordagem proposta incorpora elementos da teoria financeira comportamental, que confrontam a teoria econômica clássica para explicar o comportamento do investidor normal – isto é, sujeito a problemas de autocontrole, a dor do arrependimento, a vieses cognitivos, etc.. Entende-se que o processo de elaboração e manutenção de portfólios deva ser iterativo e dinâmico, movido pelo relacionamento e pela qualidade da comunicação entre as partes (gestor e investidor). Foi desenvolvido um modelo-base para nortear esse processo, identificando e estabelecendo uma relação entre os diferentes componentes de risco envolvidos, dentre eles a tolerância, a capacidade e a atitude ao risco. Além disso, são incorporados os objetivos do cliente, seus valores, o horizonte de investimento, a filosofia da empresa e a aculturação comportamental financeira – tanto do investidor quanto do gestor. Essa abordagem pressupõe os gestores como verdadeiros educadores, apresentando recomendações práticas para que entendam o seu próprio comportamento, melhorando as suas decisões e o seu entendimento sobre as motivações de seus clientes. Isso os tornará melhores em servi-los e educa-los, favorecendo a retenção no longo prazo. / [en] This study presents the multi-family office business model and proposes a specific approach to the construction and management of investment portfolios, in order to make them more efficient at serving their clients interests. Financial advisory – the multi-family offices core activity – is aimed at guiding clients towards making better decisions. For this purpose, the proposed framework incorporates elements of behavioral finance, which confronts standard economic theory in order to explain the behavior of normal investors; that is, subject to selfcontrol problems, the pain of regret, cognitive biases and so on. It is understood that the portfolio elaboration and management process must be iterative and dynamic, relationship-driven and guided by the quality of communication between the parties (manager and client). A base-model was developed to guide this process, identifying and relating the different risk components that are involved, such as tolerance, capacity and risk attitude. Furthermore, it incorporates the client s objectives, values, investment horizon, the company s philosophy and both the client s and manager s behavioral finance knowledge. This approach foreshadows the manager as a true educator, presenting practical recommendations so that they can better understand their own behavior, improving their decisions and knowledge regarding their clients motivations. This will make managers better at serving and educating them, favoring long-term retention.

Att förvalta sina tillgångar på bästa sätt för att få så hög avkastning som möjligt är alla investerares mål. Småsparare som inte besitter kunskap kan enkelt bränna sig vid investeringar. En enkel väg är därför att kika på hur andra investerar sina pengar för att sedan göra likadant. Där kommer sociala medier in och är en lättillgänglig plattform för alla att ta del av. Särskilt den yngre generationen som tillbringar större delen av sitt liv i den digitala världen. Tidigare studier visar att det är en stor risk att förlora pengar om småsparare investerar på tips från sociala medier. Därav syftar denna uppsats till att undersöka huruvida småsparare på den svenska marknaden använder sig av sociala medier som grund vid investeringsbeslut. Den teoretiska referensramen i studien utgår från den effektiva marknadshypotesen som ligger till grund för stor del av den forskning som finns inom ekonomi och menar på att människan är rationell när det kommer till investeringsbeslut. Detta har på senare år utmanats av beteendeekonomiska teorier som menar på att människan påverkas av psykologiska faktorer och inte alltid är rationella. Dessa psykologiska faktorer utgör grunden för vår studie. Metoden som använts i denna uppsats är en kvantitativ metod där datamaterialet inhämtas via en enkätundersökning. Enkäten gjordes via Google Forms och Sunet Survey och delades sedan via sociala medier och massutskick via Högskolan i Borås. Totalt sett fick enkäten 257 svar, efter borttagning av felaktiga och ofullständiga svar fanns 249 svar kvar. Enkäten undersökte först olika variabler som exempelvis kön, ålder och utbildning för att kunna ställa det emot deras användning av sociala medier och investeringsvanor. Enkäten var helt anonym och vid utskick följdes de etiska riktlinjerna för att generera så hög reliabilitet och validitet som möjligt. Resultatet från enkäten presenteras med hjälp av frekvenstabeller, korstabeller och chi-2-tester. Därefter analyseras resultatet med hjälp av de tre hypoteserna som formulerats. Resultatet visar att småsparare blir påverkade av psykologiska faktorer och inte alltid agerar rationellt. / Managing one's assets in the best possible way to achieve the highest possible return is the goal of every investor. However, without the right knowledge, you can easily get burned. A simple approach is to look at how others invest their money and then do the same. This is where social media comes in as an easily accessible platform for everyone to engage with. Especially the younger generation, who largely lives in the digital world. Previous studies have shown that there is a significant risk of losing money when investing based on tips from social media. Therefore, the purpose of this essay is to investigate whether investors in the Swedish market use social media as a basis for their investment decisions. The theoretical framework of this study is based on the efficient market hypothesis, which forms the basis for a large portion of the research in economics and argues that humans are rational. This has been challenged in recent years by behavioral economic theories, which suggest that humans are influenced by psychological factors and are not always rational. These psychological factors form the basis of our study. The method used in this essay is a quantitative method where the data is collected through a survey. The survey was conducted using Google Forms and Sunet Survey and was then shared via social media and mass distribution through the University of Borås. In total, the survey received 257 responses, and after removing incorrect and incomplete responses, 249 responses remained. The survey first examined various variables such as gender, age, and education to compare them with the use of social media and investment habits. The survey was completely anonymous and followed ethical measures to generate the highest possible reliability and validity. The survey results are presented using cross-tabulations and chi-square tests. The results are then analyzed using the three formulated hypotheses. The results show that retail investors are influenced by psychological factors and do not always act rationally.

The concept of behavioural finance has taken more ground concerning the traditional finance paradigm during the last decade. A vital part of the behavioural finance theorem is the subject of behavioural biases and the mistakes these biases have on private stock investors. The authors of this study focused on the bias of overconfidence due to numerous studies indicating the consequences overconfidence has on society and more specifically private investors. The initial focus departed from what might help investors overcome the overconfidence bias. Additionally, the research claiming low financial literacy among young Swedish individuals further caught the authors attention. From this, it was therefore decided to investigate financial literacy's effect on overconfidence among young Swedish individuals to potentially help young individuals understand the risk of overconfidence and what might help reduce the emotional and increase the rational decisions made in investment environments.  With the usage of a questionnaire, we were able to collect quantitative data and thereafter perform three different regressions. The three regression was based on three different measurements of overconfidence; better-than-average effect, miscalibration, and trading frequency. The questions used in the questionnaire were heavily influenced by famous previous literature when it comes to measuring overconfidence and financial literacy. It was also decided to check for different demographic variables and their effect on overconfidence, more precisely previous experience, age, gender, and level of education.  From our study it was found that financial literacy has a negative effect on overconfidence, meaning that the more financially literate an individual is, the less prone to fall victim to overconfidence. More specifically, all three regressions showed this result, indicating a strong relationship. In addition, it was also found that the more experience an individual has the less inclined the individual is to display overconfident behaviour. Lastly, it was found that men tend to be more overconfident than women.  With this study, we are able to contribute to the behavioural view of finance by proving that overconfidence partially exists and that by becoming more financially literate individuals decreases the risk of being overconfident. By being aware of this, we contribute to a healthier investment environment. In addition, this study also contributes to the previous literature on partially overconfidence and financial literacy each on their own but more importantly the effect financial literacy has on overconfidence.

Context The number of Initial Public Offerings on the Swedish market has increasedrapidly over the last decade, reporting over 100 IPOs only in 2021. Although theincrease has been extraordinary, the majority of the IPO performance researchhas been conducted on larger markets such as the US, Germany, and China. Thiscreates a gap in the research regarding the performance of IPOs on the fastgrowing Swedish stock market.  Purpose The purpose of this thesis is to fill the identified research gap and examine howthe Swedish IPOs perform in relation to established firms listed on the OMXSSmall Cap. Findings on long-term over-or underperformance would lay afoundation for potential investment strategies as well as show signs ofinformation asymmetry and mispricing. To further extend the use of ourfindings, firm-specific factors will be tested in a regression model to find ifspecific firm characteristics have a positive or negative impact on the long-termperformance of the IPOs.  Questions at issue 1. Does the Swedish Initial Public Offerings over/underperform comparedto the OMXS Small Cap in the long run? 2. Which firm-specific factors affect the long-term performance of an IPO? Methodology To find if the IPOs over-or underperform the OMXS Small Cap index, the Buyand Hold Abnormal Returns over 24 and 36 months are calculated with theOMXS Small Cap as a benchmark index. Further, a regression analysis with 15explanatory variables is performed with the received BHAR results as thedependent variable to find if there are any significant relationships between thefirm-specific variables measured before the IPO and the long-term performance.  Results The Buy and Hold Abnormal Returns presented a positive abnormal return forboth periods measured, with a significant overperformance of 9,91% over the36-month period, and 21,14% for the 24-month period. Further, the regressionanalysis showed a positive relationship between firm performance and firm sizeand Return On Equity, indicating that a high ROE, as well as a larger firm sizeat the date of the listing, increases the chances of higher long-term returns.

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.

The financial portfolio model often referred to as the Black-Litterman model is analyzed using two approaches; a mathematical and a behavioral finance approach. After a detailed description of its framework, the Black-Litterman model is derived mathematically using a sampling theoretical approach. This approach generates a new interpretation of the model and gives an interpretable formula for the mystical parameter τ, the weight-on-views. Secondly, implications are drawn from research results within behavioral finance. One of the most interesting features of the Black-Litterman model is that the benchmark portfolio, against which the performance of the portfolio manager is evaluated, functions as the point of reference. According to behavioral finance, the actual utility function of the investor is reference-based and investors estimate losses and gains in relation to this benchmark. Implications drawn from research results within behavioral finance indicate and explain why the portfolio output given by the Black-Litterman model appears more intuitive to fund managers than portfolios generated by the Markowitz model. Another feature of the Black-Litterman model is that the user assigns levels of confidence to each asset view in the form of confidence intervals. Research results within behavioral finance have, however, shown that people tend to be badly calibrated when estimating their levels of confidence. Research has shown that people are overconfident in financial decision-making, particularly when stating confidence intervals. This is problematic. For a deeper understanding of the use of the Black-Litterman model it seems that we should turn to those financial fields in which social and organizational context and issues are taken into consideration, to generate better knowledge of the use of the Black-Litterman model. / QC 20101119

Titel: Mind the Gap: Generations at Risk Författare: Samuel Hansson och Fabian Stenseth Handledare: Zahida Sarwary  Bakgrund: Efter en tid av positiv avkastning har förändringar i omvärlden lett till ökad inflation. Investerare från Generation Z upplever sin första tid på börsen i en ekonomisk oro, medan Generation X upplever det igen efter finanskraschen 2008. Dessa generationers riskbenägenhet vid finansiella beslut har inte kunnat kartläggas i modern tid, och därmed har en kunskapslucka identifieras.     Syfte: Studien ämnar undersöka och kategorisera riskbenägenhet utifrån börspsykologiska faktorer mellan Generation X (personer födda 1965–1980) och Generation Z (personer födda 1997–2012), där investerarna har en eftergymnasial utbildning inom ekonomi.  Metod: Studien har tillämpat en kvantitativ metod, bestående av en deduktiv ansats. Empiriska data har utförts via en enkätundersökning och ett slumpmässigt urval. Empirin bestod av 105 användbara svar, varav 46 svar från Generation X och 59 svar från Generation Z. Empiriska data analyserades utifrån deskriptiv statistik, t-tester, korrelationsmatris, samt multipel linjär regressionsanalys.  Resultat: Analysen redovisade en signifikant positiv samvariation mellan generationerna vid olika börspsykologiska faktorer, där mental accounting påverkade Generation X och överkonfidens påverkade Generation Z.  Slutsats: Studiens resultat påvisade en positiv signifikant samvariation för Generation Z gällande överkonfidens, vilket innebär att högre överkonfidens leder till en högre riskbenägenhet. För Generation X påvisades en positiv signifikant samvariation för mental accounting, vilket leder till en högre riskbenägenhet.  Nyckelord: Behavioral finance, investment, mental accounting, herding bias, overconfidence, financial literacy, cognitive reflection ability / Title: Mind the Gap: Generations at Risk Authors: Samuel Hansson and Fabian Stenseth Supervisor: Zahida Sarwary  Background: After a period of positive returns, changes in the environment have led to increased inflation. Investors from Generation Z are experiencing their first time in the stock market during economic uncertainty, while Generation X is experiencing it again after the 2008 financial crisis. The risk propensity of these generations in financial decision-making has not been adequately studied in modern times, creating a gap in knowledge. Purpose: The study aims to examine and categorize risk propensity based on behavioral finance factors between Generation X (individuals born between 1965 and 1980) and Generation Z (individuals born between 1997 and 2012), with investors having a post-secondary education in finance and economics. Methodology: The study applied a quantitative method with a deductive approach. Empirical data was collected through a survey and random sampling, resulting in 105 usable responses of which 46 respondents from Generation X and 59 respondents from Generation Z. The empirical data was analyzed using descriptive statistics, t-tests, correlation matrices, and multiple linear regression analysis. Results: The analysis revealed a significant positive association between the generations in various behavioral finance factors, with the risk propensity being affected by mental accounting for Generation X and overconfidence for Generation Z. Conclusion: The study's results demonstrated a significant positive association for Generation Z regarding overconfidence, indicating that higher overconfidence leads to a greater risk propensity. For Generation X, a significant positive association was found for mental accounting, which also leads to a higher risk propensity. Key words: Behavioral finance, investment, mental accounting, herding bias, overconfidence, financial literacy, cognitive reflection ability

The phenomenal financial expansion of the last decades has been characterised by an exacerbation of systemic instability and an increase in the frequency of financial crises, culminating in the recent meltdown in the US financial sector. The literature on financial crises has developed concomitantly, but despite a large number of papers written on this subject, economists are still struggling to understand the underlying determinants of these phenomena. In this dissertation, I argue that one of the reasons for this apparent failure is the way agents, as well as the environment in which they evolve, are modelled in this literature. After reviewing the existing literature on international financial crises, I outline an alternative framework, drawing from Post-Keynesian and Behavioural insights. In this framework, international financial crises are seen as being a direct consequence of the way agents formulate expectations in an environment of fundamental uncertainty and the investment and financial decisions they subsequently take. I argue that the psychological heuristics agents use in formulating expectations under fundamental uncertainty can lead to decisions which fragilise the economy and can thus be conducive to financial crises. I then apply this framework to the study of the 2000-2001 financial crisis in Turkey, which is notorious for not lending itself easily to explanations based on the existing theoretical literature on international financial crises. After outlining the crisis and reviewing the main existing accounts, I identify two moments prior to the crisis: A phase of increasing financial fragility, lasting from a previous crisis in 1994 to 1999, and a financial bubble in 2000 during the implementation of an IMF stabilisation program, partly predicated on the previous increase in financial fragility. My framework can account for both periods; it fits particularly well the first one and enhances the explanatory content of existing stories about the events that took place in 2000.