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Understanding the Investor: A Maltese Study of Risk and Behavior in Financial Investment Decisions [Hardback]

Edited by (University of Malta, Malta), Edited by (University of Malta, Malta), (University of Malta, Malta)
  • Formāts: Hardback, 328 pages, height x width x depth: 240x165x21 mm, weight: 644 g
  • Izdošanas datums: 19-Jun-2019
  • Izdevniecība: Emerald Publishing Limited
  • ISBN-10: 1789737060
  • ISBN-13: 9781789737066
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  • Hardback
  • Cena: 104,12 €
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  • Formāts: Hardback, 328 pages, height x width x depth: 240x165x21 mm, weight: 644 g
  • Izdošanas datums: 19-Jun-2019
  • Izdevniecība: Emerald Publishing Limited
  • ISBN-10: 1789737060
  • ISBN-13: 9781789737066
Citas grāmatas par šo tēmu:
In finance, understanding investors and their motivations is key for any business and policy-maker. Understanding the Investor: A Maltese Study of Risk and Behavior in Financial Investment Decisions offers a nuanced view of the Maltese investor and the Malta Stock Exchange, and its implications on the wider financial world.

In finance, understanding investors and their motivations is key for any business and policy-maker. Analyzing financial decisions and investor behavior can shed light on the major characteristics and variables behind trading decisions, giving researchers and investors a better understanding of the influences that affect the stock market.
Understanding the Investor: A Maltese Study of Risk and Behavior in Financial Investment Decisions offers a nuanced view of the Maltese investor and the Malta Stock Exchange. In this in-depth study, author Antonietta Bonello explores the major risk appetite and tolerance characteristics of decision-taking for local financial investors. With foreign direct investment (FDI) growing by around 21% between 2014-2017, Malta's investment activities can be seen and used as an example of actual investment decisions taken by active investors. Looking across investor expectations, return of income, risk and loss aversions, disposition effect, financial literacy and overconfidence, Bonello offers an exciting perspective on investors in Malta, and the implications of this on the wider financial world.
For individual investors and researchers in the area of personal finance, this new case study offers an in-depth look at investor behavior, allowing readers to understand the motivations behind emerging investment trends and to draw far-reaching conclusions on how best to prepare for upcoming challenges in financial investment.


This case study strives to understand decision-making and risk management practices of Maltese investors trading on the Malta Stock Exchange. The study searches for the factors that influence their decisions, with a special focus on the role of the financial adviser. After a literature review, the methodology of the study is explained, and data are reported and analyzed. The book ends with a summary and conclusion, followed by 55 pages of appendices offering interview questions and questionnaire used in the study. B&w graphs and charts are included. Distributed in North America by Turpin Distribution. Annotation ©2019 Ringgold, Inc., Portland, OR (protoview.com)
List of figures
xi
List of tables
xiii
List of abbreviations
xix
Preface xxi
Acknowledgments xxiii
1 An Introduction
1(8)
Background to the hook
1(2)
The reasons behind researching the Maltese investor trading on the Malta Stock Exchange
3(1)
Statement of the problem
4(1)
Aim and objectives of the book
5(1)
The research questions
5(1)
Propositions
5(1)
Conceptual framework
6(1)
Significance of the study
7(1)
Contents
8(1)
2 Literature Review
9(34)
Introduction
9(1)
The market
10(1)
Investment
11(1)
Financial investment in Media
12(3)
The investor
15(2)
Risk, risk tolerance, and risk appetite
17(3)
Expectations and performance
20(1)
Trading and investor behavior
21(2)
Disposition and risk aversion
23(1)
Behavioral bias
24(1)
Overconfidence
25(3)
Information
28(1)
Financial literacy
29(1)
The financial advisor
29(2)
Other factors
31(12)
3 Methodology
43(24)
Research design
43(1)
Participant selection
44(3)
Data collection methods
47(1)
Instrumentation
48(4)
Logistics of data collection
52(2)
Ethics
54(1)
Data analysis
54(4)
Summarizing the tests
58(2)
Limitations of the methodology
60(7)
4 Analysis
67(138)
Demographics
67(12)
Proposition I: Initially Maltese investors have high expectations in terms of financial returns while returns are lower than what was expected
79(7)
Proposition 2A: Investors sell winners and retain losers
86(31)
Proposition 2B: Investors are risk averse in cases of gain but risk takers in cases of loss
117(16)
Proposition 2C: Overconfident investors trade more and earn less
133(1)
Proposition 3A: Information at the hand of investors is mostly promotional
147(5)
Proposition 3B: Investors do not know their investments
152(10)
Proposition 3C: Knowledge is positively related to maturity and confidence
162(8)
Other factors -- Advice received
170(11)
Other factors -- Familiarity
181(4)
Other factors -- Herding
185(4)
Other factors -- Investor's fear
189(4)
Other factors -- Past experiences
193(6)
Other factors -- Costs
199(6)
5 Conclusion
205(18)
Summary of the salient findings
205(2)
Answers to research questions
207(2)
Conclusion on propositions
209(4)
Discussion
213(4)
Limitations of the study and mitigation
217(1)
Further research
218(1)
Significance and originality of findings
219(1)
Recommendations
219(2)
Overall conclusion
221(2)
Appendices
223(56)
Appendix 1 Other findings: By descriptives
223(11)
Appendix 2 Questionnaire
234(21)
Appendix 3 Layout of analysis
255(7)
Appendix 4 Interview questions
262(2)
Appendix 5 Interview questionnaire results
264(5)
Appendix 6 Annex to proposition 2C -- Exploring the traits to the composite of overconfidence
269(10)
References 279(16)
Index 295
Antonietta Bonello has over thirty years of experience in a variety of sectors, from small business management, to public administration. Her research is in Insurance and Risk Management in public and private institutions. Simon Grima is the Head of the Insurance Department and a Senior Lecturer at the University of Malta. He served as the President of the Malta Association of Risk Management (MARM) and Malta Association of Compliance, and has over 25 years of experience in in Financial Services, Internal Controls, Investments and IT.   Jonathan Spiteri is a Resident Academic within the Department of Insurance at the University of Malta. With experience in both the private sector and in academia, he is currently involved in the R2Pi Horizon 2020 project, which examines Circular Economy models in Europe.