Effects of governance on investment decisions and perceptions of reporting credibility: Investment experience of Taiwanese individual investors
| Autor: | Ruey-Dang Chang, Jo-Ting Wei |
|---|---|
| Rok vydání: | 2010 |
| Předmět: |
Finance
business.industry Investment strategy Strategy and Management media_common.quotation_subject Corporate governance Economics Econometrics and Finance (miscellaneous) Accounting Behavioral economics Investment (macroeconomics) Investment decisions Perception Credibility Business and International Management business Open-ended investment company media_common |
| Zdroj: | Asia Pacific Journal of Management. 28:139-155 |
| ISSN: | 1572-9958 0217-4561 |
| DOI: | 10.1007/s10490-010-9226-4 |
| Popis: | This paper examines the effects of governance strength on individual investors’ investment decisions and their perceptions of the credibility of financial reporting by Taiwanese companies. It also examines whether the investment experience of individual investors influences their perceptions and decisions. Our experimental results show that governance strength enhances the price that individual investors are willing to pay for stocks, along with the perceived credibility of firm reporting. Furthermore, the associations are moderated by the investment experience of individual investors, suggesting that more-experienced individual investors are better able to incorporate governance strength into their judgment than less-experienced individual investors. Additionally, investment experience is positively related to the emphasis that individual investors give to corporate governance information in making investment decisions. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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