1,721,003 research outputs found
Sitting on the Board or Sitting on the Throne? Evidence of Boards{'} Overconfidence from the Italian Market
No full textBetween things we know with certainty and things we do not know absolutely there is a continuum spectrum of things we know something about: but how much do we know? People think they know more than they actually do: this tendency is defined as overconfidence. We explore the phenomenon with respect to mergers and acquisitions (M&As) and we introduce a new proxy for overconfidence: interlocking directorship (ID). We review different factors at the origin of this decision making (DM) bias and we theoretically justify why directors may be affected by it. Using event-study methodology, an empirical analysis is conducted on a multi-sector sample of Italian listed companies, which includes 296 M&A deals realized over the period 2000–2013. We analyse the impact of these extraordinary operations using cumulative abnormal returns (CARs) adding in the model control variables and measures of overconfidence. Results show negative and statistically significant average CARs around the date of announcement of the operations, suggesting that M&As are value destructive in the short term, and sitting on more than one board even increases this result, corroborating the hypothesis of managerial overconfident evaluations
Quando il central banking «cinguetta»: destinatari e contenuti dei tweet delle banche centrali
No full textLo studio del contenuto della comunicazione delle banche centrali europee attraversoTwitter, condotto tramite l’analisi testuale degli hashtag, rivela che la supervisione bancaria, l’infla- zione, l’unione monetaria e l’integrazione economica europea, la corporate governance e gli scenari futuri sono le aree più rilevanti. I risultati mostrano anche l'esistenza di alcuni cluster ben identificabili di destinatari, quali istituzioni internazionali, accademici e mass media
Do the media capture banking system risk? Evidence from the EU-15 countries
No full textThe economic and financial crisis has highlighted the failure of banking authorities in capturing all the elements and information needed to ensure effective and sound regulation, supervision and risk management of the banking sector. Mass media are a potentially highly effective mechanism of external control on banking system. Our paper addresses a central question: do the media play a role in grabbing the banking risk-taking behaviour? Using the text-analysis technique, we develop two indices of risk coverage in relation to banking and economic issues for the EU-15 zone countries between 1998 and 2015. Then we ‘test on field’ both indices in relation to banking asset quality, and we find that for several countries, they are positively correlated with the financial stability indicator; on the other hand, we do not observe a widespread trend reversal which would reveal a ‘watchdog’ role of the media on banking riskiness
Alfabetizzazione finanziaria grafica e comportamento dei consumatori: un’indagine nel contesto italiano
No full textI grafici sono comunemente utilizzati nella comunicazione economica e finanziaria al fine di agevolare la comprensione dei dati ma spesso gli individui incontrano difficoltà nell’interpretarli. Questa ricerca propone uno strumento per misurare la financial graph literacy (Fgl) e analizza la relazione tra Fgl e comportamento finanziario. L’analisi econometrica (n = 533) mostra come livelli di Fgl più elevati siano associati a un comportamento finanziario più attivo. I risultati possono fornire importanti informazioni ad accademici, operatori finanziari e responsabili del marketing sull’importanza del formato
della comunicazione sulle scelte di consumatori di prodotti e servizi finanziari,
nonché supportare policy maker e autorità nell’individuare i soggetti più vulnerabili
EUROPEAN SYSTEM OF CENTRAL BANKS AND COMMUNICATION: WHAT DO SOCIAL MEDIA REVEAL?
No full textThe study of the content of the European National Central Banks, conducted through the text analysis of hashtags, reveals that banking supervision, inflation, Monetary Union and European economic integration, corporate governance and future scenarios are some of the most relevant areas.The results also reveal the existence of some cluster of receivers such as International institutions, academics, influencers
Expectations of bank automation: the influence of consumer cognitive schema
Full text linkPurpose
This study aims to investigate the drivers of bank automation system performance expectancy compared to that of bank employees. The purpose is to shed light on the role played by consumers' cognitive schema on automation that is the perfect automation schema (PAS).
Design/methodology/approach
A survey was administered to about 500 Italian subjects to measure their PAS; financial knowledge, anxiety, and security; and sociodemographic and socioeconomic variables. Ordered probit regressions and an instrumental variable two-stage least squares regression are run.
Findings
The analyses reveal that cognitive schemas play a crucial role in consumer expectations in banking. Individuals with stronger PAS tend to have more positive expectations about bank automation performance compared to employee performance. Financial anxiety and knowledge positively affect bank automation performance expectancy while women, older people, and financially insecure subjects have poor expectations of automated banking systems.
Originality/value
This study extends the understanding of key consumer characteristics that affect bank automation performance expectancy compared to that of bank employees in services delivery in the Italian context. Moreover, it provides useful results for researchers, practitioners, banking institutions, and regulators
Neural Correlates of Direct Access Trading in a Real Stock Market: An fMRI Investigation
Full text linkBackground: While financial decision making has been barely explored, no study has previously investigated the neural correlates of individual decisions made by professional traders involved in real stock market negotiations, using their own financial resources. Aim: We sought to detect how different brain areas are modulated by factors like age, expertise, psychological profile (speculative risk seeking or aversion) and, eventually, size and type (Buy/Sell) of stock negotiations, made through Direct Access Trading (DAT) platforms. Subjects and methods: Twenty male traders underwent fMRI while negotiating in the Italian stock market using their own preferred trading platform. Results: At least 20 decision events were collected during each fMRI session. Risk averse traders performed a lower number of financial transactions with respect to risk seekers, with a lower average economic value, but with a higher rate of filled proposals. Activations were observed in cortical and subcortical areas traditionally involved in decision processes, including the ventrolateral and dorsolateral prefrontal cortex (vlPFC, dlPFC), the posterior parietal cortex (PPC), the nucleus accumbens (NAcc), and dorsal striatum. Regression analysis indicated an important role of age in modulating activation of left NAcc, while traders' expertise was negatively related to activation of vlPFC. High value transactions were associated with a stronger activation of the right PPC when subjects' buy rather than sell. The success of the trading activity, based on a large number of filled transactions, was related with higher activation of vlPFC and dlPFC. Independent of chronological and professional age, traders differed in their attitude to DAT, with distinct brain activity profiles being detectable during fMRI sessions. Those subjects who described themselves as very self-confident, showed a lower or absent activation of both the caudate nucleus and the dlPFC, while more reflexive traders showed greater activation of areas involved in strategic decision making. Discussion: The neural correlates in DAT are similar to those observed in other decision making contexts. Trading is handled as a well-learned automatic behavior by expert traders; for those who mostly rely on heuristics, cognitive effort decreases, and transaction speed increases, but decision efficiency lowers following a poor involvement of the dlPFC
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