Individual Investor Perceptions And Behavior During The Financial Crisis Essay
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Individual investor perceptions and behaviour during the financial crisis
The main focus of this paper is on the financial crisis and the individual investor perceptions about it as well as the risk taking behaviour of the people. The paper discusses the aspects of risk perceptions and risk tolerance in regard to the significant fluctuations of the investor perceptions and the volatility of the return expectations. To understand these perceptions, a panel-data set has been used which combines the monthly survey data and the brokerage records. The sample era includes, on the one hand, the months when universal stock markets were hit toughest, that is, September and October 2008.
The research undertaken has a very constant effect on the investor psychology about the behaviour on risk taking and trading. A key discovery from such readings is that individual investors have trouble learning from their understandings, and if they learn, this is a slow and gradual process (Gervais and Odean, 2001; Seru et al., 2010). Furthermore, separate investors often fail to update their behaviour to compete their experiences and are comparatively unaware of their return performance (Glaser and Weber, 2007). Therefore, it seems that at least for the period of tranquil times, investors’ involvements have little or no effect on their perceptions and behaviours. Thaler and Johnson (1990) as well as Barberis (2013) discover that undergoing a number of successive losses decreases investors’
Throughout the better part of previous decade, housing prices in the United States, especially in and around metropolitan areas and high population growth areas (such as the Southwest) saw an unprecedented rise in housing prices . In 2007, many of the financial instruments which were used to back the purchase of these properties, such as subprime and Alt-A mortgages, as well as Collateralized Debt Obligations (CDOs), suffered a sudden and massive downturn . In hindsight, it is accepted by a wide range of
PRINCIPLES AND PRACTICES OF CORPORATE COMMUNICATION
ASSIGNMENT 1 (INDIVIDUAL)
TOPIC:
THE CONCEPT OF CORPORATE COMMUNICATION
LECTURER/TUTOR : MR ABEL RAJ
TUTORIAL GROUP : T 1
NAME : CHOW POI KEE
STUDENT ID : 1502748
TOPIC:
THE CONCEPT OF CORPORATE COMMUNICATION
CONTENT PAGE
1 INTRODUCTION
2 EMPLOYEE RELATIONS
3 INVESTOR RELATIONS
4 MEDIA RELATIONS
5 CORPORATE ADVERTISING
6 INTEGRATED MARKETING COMMUNICATION
7 CRISIS COMMUNICATION
8 CORPORATE COMMUNICATION AUDITS
9 BRANDING
10 CUSTOMER
that goes on between the people and a particular company. Public relations sometimes also includes an organization or individual trying to gain exposure to people involving topics of public interests, issues and news items that do not require direct payment. The main purpose and aim of public relations done by a company or an organization mostly is to persuade the public, investors, partners, employees, and other stakeholders to maintain a proper image and goodwill about it.. Some of the frequent
people around the world. The firm survived every major crisis like the Great Depression, World War II, the 1987 market crash, and the 9/11 terrorists attack and never had a losing quarter in its history until December 2007, when Bear Stearns announced the first loss for about $854 million.
1. Failure Analysis:
1.1. Major factors that contributed to Bear Stearns failure
After the 9/11
between directors and outside investors than between venture capitalists and outside investors. However, venture capitalists are repeat investors who have valuable reputation at stake which may limit their conflict of interests with outside investors acquiring shares in the IPO. Outside investors may not purchase shares in the IPO backed by venture capitalists who were previously involved in taking advantage of insider information and reducing the wealth of outsider investors. Besides venture capitalists
Title
Date of Submission
Causes of the 2008 Financial Crisis
a) Financial crisis definition
Financial crisis is defined as the financial meltdown, or in other terms as the credit crunch. A financial crisis is an economic incidence makes it hard to obtain and access the capital for use in investment. The economic crisis is an ongoing economic problem that was more pronounced in 2008 resulting in the liquidity in the global credit markets and its financial systems (Berlatsky 77). This means that there
D10 & DD1: Reputation is a valuable intangible asset of organisation because it could attract customers, satisfy investors, improve financial performance, attract qualified staff, and create a competitive advantage (Eccles et al., 2007, Helm, 2007, Carmeli and Tishler, 2005; Davies et al., 2003; Fomrun and Gardberg, 2000; Fombrun and van Riel, 2004). Reputation is ultimately a competitive factor as products, services or performances in general are gradually become alike to each other. Reputation
economic turmoil and isolation behind its borders, Mexico began to allow foreign capital and foreign direct investment (FDI) to flow into its economy, and the external debt that had been hanging over Mexico’s head since the 1982 balance of payments (BOP) crisis was finally restructured. With the signing of the North Atlantic Free Trade Agreement (NAFTA) on January 1, 1994, a trilateral trade bloc was created in North America between Mexico, the United States, and Canada. Foreign trade restrictions were
imperative for banks to keep a close watch on the interest rate cycle: if rates are rising they have to ensure that their lending rates rise alongside or before the borrowing rate and vice versa. The premier position that Barclays enjoyed in the financial industry for over 3 centuries is a validation of the fact that it was built on the strong principles of finance. However, the last couple of decades have seen erosion in its reputation due to the breaching of those very principles.
Barclays Bank