Affect account of disposition effect and consequences for stock prices

2017 ◽  
Vol 9 (2) ◽  
pp. 187-202 ◽  
Author(s):  
Tommy Gärling ◽  
Mary Blomman ◽  
Tim Alexander Carle
Keyword(s):  
Stock Prices ◽  
Design Methodology ◽  
Disposition Effect ◽  
Stock Trading ◽  
Market Prices ◽  
Content Type ◽  
Individual Level ◽  
Price Increases ◽  
The Individual ◽  
Level Analysis

Purpose The purpose of this paper is to present an affect account that identifies emotions driving sell preferences in stock markets that result in the disposition effect (winning stocks hold too short and losing stocks too long) and to specify how stock prices are influenced. Design/methodology/approach The affect account is derived based on analyses of previous research showing the disposition effect, proposed explanations of the effect, and basic emotion research. An individual-level analysis is performed of the consequences for stock market prices. Findings The main proposal is that investors prefer to sell when price increases make the increasing balance of hope and fear equal to a faster increasingly balance of anticipated elation and disappointment, and when price decreases make the faster increasingly negative hope-fear balance equal to the increasing negative elation-disappointment balance. Steepness in slope of the negative hope-fear balance accounts for whether a loser is never sold (an extreme disposition effect), sold later than a winning stock (the usually observed disposition effect), or sold earlier than a winning stock (a reverse disposition effect). The individual-level analysis suggests that the affect-driven disposition effect would intensify or attenuate trends in stock prices depending on the demand-supply balance. Originality/value A conceptual contribution to research of emotion influences on stock trading and specifically to explanations of the disposition effect on sell decisions by less sophisticated and experienced investors.

Organizational culture now and going forward

2019 ◽  
Vol 32 (6) ◽  
pp. 650-668
Author(s):  
Pyounggu Baek ◽  
Jihyun Chang ◽  
Taesung Kim
Keyword(s):  
Organizational Culture ◽  
North America ◽  
Change Management ◽  
Design Methodology ◽  
Research Community ◽  
Content Type ◽  
Individual Level ◽  
Organization Level ◽  
The Individual ◽  
Modern Perspective

Purpose The purpose of this paper is to examine the fundamental premises (i.e. perspectives on organizations and intrinsic research contributions) embodied in the literature on organizational culture and offer insights into where organizational culture research should be headed now and going forward. Design/methodology/approach This research provides an integrative review of organizational culture research and investigates commonalities and differences in terms of the fundamental premises between North America and Europe. Findings The findings include that the modern perspective was most pervasive (87 percent) in both regions, with Europe slightly more open to varied perspectives such as symbolic and postmodern ones; approximately 70 percent of the studies were geared toward organization-level contributions, less than 10 percent toward individual-level contributions, and less than 20 percent toward mega-level contributions as the underlying research intent; and (c) in terms of the perspective-contribution combination, the pair of modern perspective and organization-level contribution was most dominant in both regions, while the individual-level contribution was paired with no other perspectives than the modern one. Research limitations/implications This research suggests that the research community shape a whole new discourse on organizational culture and recommends several promising research avenues. Originality/value By engaging in fundamental discussions on how an organization has been perceived and what purpose it has meant to deliver, this research offers an overarching view of where we stand currently and possibly where we should be heading in terms of organizational change management.

The value of human capital within Canadian business schools

2018 ◽  
Vol 19 (4) ◽  
pp. 836-855 ◽  
Author(s):  
Ajantha Velayutham ◽  
Asheq Razaur Rahman
Keyword(s):  
Human Capital ◽  
Design Methodology ◽  
Positive Association ◽  
Content Type ◽  
Individual Level ◽  
Structural Capital ◽  
The Individual ◽  
Academic Salaries ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to empirically investigate whether an individual’s knowledge, skills and capabilities (human capital) are reflected in their compensation. Design/methodology/approach Data are drawn from university academics in the Province of Ontario, Canada, earning more than CAD$100,000 per annum. Data on academics human capital are drawn from Research Gate. The authors construct a regression analysis to examine the relationship between human capital and salary. Findings The analyses performed indicates a positive association between academic human capital and academic salaries. Research limitations/implications This study is limited in that it measures an academic’s human capital solely through their research outputs as opposed to also considering their teaching outputs. Continuing research needs to be conducted in different country contexts and using negative proxies of human capital. Practical implications This study will create awareness about the value of human capital and its contribution towards improving organisational structural capital. Social implications The study contributes to the literature on human capital in accounting and business by focussing on the economic relevance of individual level human capital. Originality/value The study contributes to the literature on human capital in accounting and business by focussing on the economic relevance of individual level human capital. It will help create awareness of the importance of valuing human capital at the individual level.

scholarly journals Cross-sector dialogue for sustainability: to partner or not to partner?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Celine Louche ◽  
Suzanne Young ◽  
Martin Fougère
Keyword(s):  
Design Methodology ◽  
Special Issue ◽  
Resource Based View ◽  
Content Type ◽  
Individual Level ◽  
Research Themes ◽  
Societal Context ◽  
The Individual ◽  
High Level ◽  
Practical Implications

Purpose The purpose of this paper is to introduce the topic and review the contributions of the special issue papers on cross-sector dialogue for sustainability. The paper also presents avenues for further research. Design/methodology/approach The paper is based on a review of the current literature on cross-sector partnership and dialogue. It explores the current issues in cross-sector partnerships through a discussion of the papers accepted for the special issue, their focus, findings and key contributions. Findings It highlights three main key research themes and learnings from the special issue papers: a high level of “hybridity” of collaboration forms, which involve important tensions; a need to understand partnership in its context and the importance of the individual level in cross-sector collaboration. Practical implications The authors call for attention to be paid to two forms of myopia: a tendency to view partnerships primarily from a resource-based view (without much attempt to measure societal impact) and a reluctance to be explicitly critical (despite empirical evidence of some suboptimal aspects of partnerships). Social implications The authors call for researchers to move away from a resource-based approach to one that is situated in exploring the value derived from partnerships in the broader societal context. The authors suggest some avenues for further research to move the discussion beyond the partnership imperative. Originality/value The paper outlines the need to critically revisit the very essence of what real partnership means and whether dialogue is really taking place.

Capabilities and skills to orchestrate innovation networks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taisson Toigo ◽  
Douglas Wegner ◽  
Silvio B. da Silva ◽  
Felipe de Mattos Zarpelon
Keyword(s):  
Design Methodology ◽  
Innovation Networks ◽  
Interorganizational Relations ◽  
Innovation Network ◽  
Content Type ◽  
Individual Level ◽  
Literature Reviews ◽  
Central Actor ◽  
The Individual

Purpose This study aims to present a theoretical analysis on the capabilities (at the organizational) and skills (at the individual level) of the hub organization (orchestrator) in an innovation network. Design/methodology/approach The authors conducted literature reviews on the orchestration of innovation networks; and networking capabilities. Findings This study presents a theoretical model and a research agenda. Originality/value In interorganizational relations, a central actor can stand out the role of intentionally creating, extracting and distributing value in the network, generating gains for all members. Literature recognizes this set of intentional and deliberate actions as the “orchestration” of resources in the network. Despite the increasing interest regarding the theme, the phases and specific capabilities for orchestration still lack further investigation.

Risk and ambiguous choices: individual versus groups, an experimental analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Divya Aggarwal ◽  
Uday Damodaran ◽  
Pitabas Mohanty ◽  
D. Israel
Keyword(s):  
Design Methodology ◽  
Ambiguity Aversion ◽  
Group Level ◽  
Content Type ◽  
Individual Level ◽  
Real World Applications ◽  
Ambiguity Attitudes ◽  
The Individual ◽  
Normative Models ◽  
Gains And Losses

PurposeThis study examines individual ambiguity attitudes alone and in groups by leveraging the descriptive model of anchoring and adjustment on decision-making under ambiguity. The study extends Ellsberg's probability ambiguity to outcome ambiguity and examines decisions made under both ambiguities, at different likelihood levels and under the domain of gains and losses.Design/methodology/approachThe methodology selected for this study is a two-stage within-subject lab experiment, with participants from different Indian universities. Each participant made 12 lottery decisions at the individual level and at individuals in the group level.FindingsThe results show that ambiguity attitudes are not universal in nature. Ambiguity seeking as a dominant choice was observed at both the individual level and at individual in the group level. However, the magnitude of ambiguity seeking or ambiguity aversion contingent upon the domain of gains and losses differed widely across the individual level and at individuals in the group level.Research limitations/implicationsThe study enables to contribute toward giving a robust descriptive explanation for individual behavior in real-world applications of finance. It aims to provide direction for theoretical normative models to accommodate heterogeneity of ambiguity attitudes.Originality/valueThe study is novel as it examines a two-dimensional approach by representing ambiguity in probability and in outcomes. It also analyzes whether decisions under ambiguity vary when individuals make decisions alone and when they make it in groups.

A case for poetry as history and a methodology with poems by James G. March

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jyoti Bachani
Keyword(s):  
Design Methodology ◽  
Poetic Form ◽  
Content Type ◽  
Self Reflection ◽  
Individual Level ◽  
Ethnographic Approach ◽  
To Come ◽  
The Individual ◽  
Future Work ◽  
Selection Of

Purpose This study aims to reveal a lesser known side of Late James G. March, as a poet, by offering a curated selection of his poems. The other purpose of this study is to make a case for using poetry as a methodology. Poetry requires engagement by the reader, thus creating space for the personal. With multiple personal explanations co-existing, poetry allows clarity of action at the individual level while simultaneously leaving room for debate and discussion at the collective level. Thus, poetry offers pluralistic histories with room for complexity, ambiguity, paradox and contradictions. Design/methodology/approach The selection of poems is highly subjective, so an auto-ethnographic approach was appropriate. The collection is curated for the readers of this journal, on topics relevant for the members of the Academy of Management. The argument for poetry as a methodology is based on engaging with the poems for self-reflection and reflexivity. Findings March had a life-long commitment to self-expression through poems. Poetic engagement by one poetry lover with a selection of his poems about our shared profession, yields small self-discoveries that are good for the collective, by revealing unknown histories, with possibilities other than the dominant single story. Poetry as a methodology brings in the personal, that yields moving theories, that are practical in guiding individual action in personally meaningful ways, even in ambiguous, contradictory and complex situations. Originality/value Ideas expressed in poetic form provide a way to liberate possibilities latent in the language itself. Future work from this contribution can be that March’s poems stimulate the imaginations of other poets and poetry lovers, who may have kept it as a private pursuit, just as he did, to come out and share their personal reflexive journeys.

Customer experience formation in today’s service landscape

2016 ◽  
Vol 27 (5) ◽  
pp. 678-703 ◽  
Author(s):  
Michaela Lipkin
Keyword(s):  
Design Methodology ◽  
Research Problem ◽  
Customer Experience ◽  
Sense Making ◽  
Content Type ◽  
Individual Level ◽  
The Individual ◽  
Advance Theory ◽  
Practical Implications ◽  
Service Field

Purpose The purpose of this paper is to review customer experience formation (CXF) by first locating and analyzing how researchers approach CXF in the service literature and the theoretical underpinnings of these approaches, and then assessing which approaches are best suited for understanding, facilitating, and examining CXF in today’s service landscape. Design/methodology/approach This study systematically reviews 163 articles published between 1998 and 2015 in the service field. Findings This study illustrates how researchers approach CXF on the individual level by applying stimulus- interaction- or sense-making-based perspectives. These reflect researchers’ theoretical underpinnings for how individuals realize the customer experience within environmental, social, and temporal contexts through intermediation. Researchers further apply contextual lenses, including the dyadic and service- or customer-ecosystem lenses, which reflect their theoretical underpinnings for explaining how various actor constellations and contextual boundaries frame individual-level CXF. Finally, this study shows why the sense-making-based perspective, together with a service- or customer-ecosystem lens, is particularly suitable for approaching complex CXF in today’s service settings. Research limitations/implications To advance theory, researchers should choose the approaches resonant with their research problem and worldview but also consider that today’s complex service landscape favors holistic and systemic approaches over atomistic and dyadic ones. Practical implications This study provides managers with recommendations for understanding, facilitating, and evaluating contemporary CXF. Originality/value This study advances the understanding of CXF by systematically reviewing its multiple layers, approaches, and dimensions and the opportunities and challenges of each approach.

Invention commercialization among Russian scientists: bridging the gap between ideational and material realms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Turkhan Sadigov
Keyword(s):  
Content Analysis ◽  
Design Methodology ◽  
Management Practice ◽  
Content Type ◽  
Individual Level ◽  
Directed Content Analysis ◽  
Research Findings ◽  
The Individual ◽  
Population Attitudes ◽  
Depth Interviews

PurposeThe purpose of this paper is twofold. First, the article explores an understudied side of invention commercialization–the rejection of business as something “dirty” among Russian scientists. As such, the paper contributes to the individual-level explanations of innovation promotion, hence balancing extant literature's excessive focus on institutional explanations. Second, the article suggests that Russian scientists' rejection of business is rooted in broader Russian work ethics rift between “material” and “ideational” aspects of life. As such, the paper shows how dominant collective values refract in the management practice of specific social class, i.e. of scientists.Design/methodology/approachTo analyze the rift between material and ideational aspects of Russian scientists' work, the article employs directed content analysis (DCA) of in-depth interviews with 45 Russian scholars. To address credibility bias of the research findings stemming from DCA, I further draw on the survey of existing studies, researches and polls highlighting Russian population attitudes toward the dichotomy between “material” and “ideal” realms.FindingsThis study argues that Russian scientists' likelihood of invention commercialization is positively associated with their ability to integrate in a personal psyche business and science as equally valuable facets of life.Originality/valueThe article identifies the three groups of scientists – opportunity-seekers, idealists and integrators – with different attitudes to invention commercialization. The article shows how policymakers should apply institutional incentives differently to each group of scientists to achieve higher rates of invention commercialization.

National systems of entrepreneurship: goals of sustainability

2020 ◽  
Vol 9 (4) ◽  
pp. 345-364
Author(s):  
Mario Raposo ◽  
Cristina I. Fernandes ◽  
Pedro M. Veiga
Keyword(s):  
Design Methodology ◽  
Institutional Characteristics ◽  
Content Type ◽  
Individual Level ◽  
The Core ◽  
Systemic Factor ◽  
The Individual ◽  
The Impact ◽  
The Relationship ◽  
National Systems

PurposeNational systems of entrepreneurship (NSE) broadly act as a means of allocating resources driven by the constant search for opportunities at the individual level through the launching of new businesses and firms with such activities, and their results are governed by the specific institutional characteristics of each country. In contrast to the institutional emphasis on innovation systems, in which such institutions establish and regulate actions, institutions are only able to regulate those who act with the results stemming from such individual actions, the core driver of national entrepreneurship systems.Design/methodology/approachGiven the challenges faced by companies and societies in general over mitigating climate change, support for sustainable entrepreneurship is fundamental. However, there has to be any study of the impact of national entrepreneurship systems on sustainability. This research therefore analyses the impact of national entrepreneurship systems on the sustainability of countries.FindingsThe authors conclude that those countries deploying higher level national entrepreneurship systems return better results in terms of their sustainability.Originality/valueThe authors, thus, seek to contribute towards the academic throughout deepening the knowledge prevailing on the relationship between entrepreneurship and sustainability. The authors also seek to enable managers, entrepreneurs and politicians to grasp how entrepreneurship is a systemic factor, and it is at this level that it may make its greatest contribution to bringing about sustainability.

Emergence of interpersonal helping in times of crises: a theoretical model of prosperity and eradication of interpersonal helping in organizations

2020 ◽  
Vol 58 (10) ◽  
pp. 2257-2273
Author(s):  
Shih Yung Chou ◽  
Charles Ramser ◽  
Tree Chang ◽  
Bo Han
Keyword(s):  
Theoretical Model ◽  
Design Methodology ◽  
Job Crafting ◽  
Future Research ◽  
Content Type ◽  
Individual Level ◽  
Unit Level ◽  
Organizational Crises ◽  
Interpersonal Helping ◽  
The Individual

PurposeThe purpose of this article is to develop a cross-level, theoretical model describing the process by which interpersonal helping becomes conspicuous, as well as the process by which interpersonal helping subsequently prospers or becomes eradicated in the organization.Design/methodology/approachA theoretical analysis was performed by drawing upon various management-related theories.FindingsWe propose that organizational crises foster the emergence of interpersonal helping. Additionally, the positive relationship between organizational crises and interpersonal helping is stronger (or weaker) when individuals possess higher levels of other-oriented (or self-oriented) motives. Furthermore, we propose that a sympathetic climate at the unit level and employee job crafting at the individual level result in the prosperity of interpersonal helping, whereas interpersonal helping is eradicated by a sarcastic atmosphere at the unit level and citizenship pressure at the individual level.Originality/valueTheoretically, we advance the literature by providing future research with a theoretical base for understanding interpersonal helping from a temporal and cross-level perspective. Practically, this article offers some managerial recommendations that help managers nurture interpersonal helping in organizations effectively.

Sign in / Sign up

Export Citation Format

Share Document