Richa Pandey and V. Mary Jessica
The purpose of this study to evaluate the evolving market efficiency of the housing market under the framework of adaptive market hypothesis and martingale difference hypothesis…
Abstract
Purpose
The purpose of this study to evaluate the evolving market efficiency of the housing market under the framework of adaptive market hypothesis and martingale difference hypothesis taking a case of India.
Design/methodology/approach
The study used a wild bootstrap version of the generalized spectral (GS) test in the rolling window framework to measure possible time-varying linear and non-linear dependence in the housing market.
Findings
The study finds that the Indian housing market, in general, is not efficient, and this efficiency is dynamic, which changes with time lending support to the adaptive market hypothesis. The study confirms that the evolutionary model of individuals adapting to a changing environment via behavioural biases affects the efficiency of the housing market, which leads to the evolving efficiency of the housing market prices.
Research limitations/implications
The study believes that the potential implications go beyond evolutionary forces and the adaptive market hypothesis , which, does not only depend on an individual's decision-making process but also on social psychology. Thus, a further attempt in this line, taking into account the social psychology and quantitative rigour towards drivers of evolving efficiency is suggested for future research.
Practical implications
The study suggests that there is a possibility of extra returns for market players, but not always. The Indian housing market has witnessed several landmark reforms in recent years, so it is believed that these reforms would decrease the inefficiency level of this market. Contrary to this, the study’s findings reveal an increase in the inefficiency level in recent years. As the Indian housing market shows evolving efficiency, it is believed that the increased inefficiency is temporary. The increased inefficiency can be regarded as the settlement stage of the various policy and technical reforms.
Originality/value
Confirming the presence or absence of adaptive efficiency in the housing market under possible non-linear dependence will be a significant addition to the existing literature.
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Richa Pandey and V. Mary Jessica
The purpose of this study is to explain the relationship between behavioural biases, investment satisfaction and reinvestment intention considering the effect of evolutionary…
Abstract
Purpose
The purpose of this study is to explain the relationship between behavioural biases, investment satisfaction and reinvestment intention considering the effect of evolutionary psychology. The study believes that biases are not at all times bad; sometimes, biases can assist the individual investor to select the top course of action and allow them to go for the less costly mistakes, thereby helping in achieving satisficing behaviour.
Design/methodology/approach
Data were collected using structured and a close-ended questionnaire from a sample of 560 respondents by using multi-stage stratified sampling method. PLS-SEM was used for preliminary validation of the questionnaire. Mediation model using the structural equation model (SEM) with the help of AMOS 20 was used for the analyses. Pre-requisite assumptions for SEM were checked by using sample characteristics. The study has three constructs with multiple items; hence, the instrument validation was done by measuring the construct validity and reliability using Cronbach’s alpha, exploratory factor analysis and confirmatory factor analysis with the help of SPSS 20 and AMOS 20.
Findings
The study confirms that behavioural biases influence investment decisions in the real estate market. Further, investment satisfaction is found to have a significant and complementary partial mediating effect. The positive mediating effect of investment satisfaction between behavioural biases and reinvestment intention shows that biases are natural tendencies in response to limit to learning which can be explained by evolutionary psychology.
Research limitations/implications
There are chances that the result obtained here is because of myopic decision-making behaviour in which the long-time horizon is not considered and behavioural biases, as well as evolutionary psychology, are adaptive, so the result may change in the long-time horizon, which seeks further investigations. The study talked about the relationship between behavioural biases, investment satisfaction and reinvestment intention; it will be interesting to bring some more constructs in this model, for example, investment intention and reinvestment behaviour; this can deliver a more precise picture in this regard.
Practical implications
Understanding such relationships will help in better clarity about the way investment is made. The study confirms that market behaviour in the real estate market is sub-optimal, which shows that there is an opportunity for attentive investors by trading and gathering on information. Real estate practitioners can get clues from market anomalies and investor phenomena; understanding these may suggest ways to use them in the market.
Social implications
Reforms in the housing sector do not only satisfy one of the basic needs but also leads to holistic economic development. Besides direct contribution, it contributes to social capital.
Originality/value
The study extends the current knowledge base about the relationship between behavioural biases, investment satisfaction and reinvestment intention. This study investigates the behavioural biases influencing the real estate market investment decisions of non-professional investors considering the effect of evolutionary psychology.
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Richa Pandey and V. Mary Jessica
This study aims to investigate the behavioural biases influencing the real estate market investing decisions of normal non-professional investors in India.
Abstract
Purpose
This study aims to investigate the behavioural biases influencing the real estate market investing decisions of normal non-professional investors in India.
Design/methodology/approach
As the study involves the behavioural data with polytomous response format, psychometric test- graded response model (IRT approach) was used for the study with the help of STATA 14. Multi-stage stratified sampling was used to collect a sample of 560 respondents. The study used a 14-item scale representing behavioural biases derived from two broad behavioural theories, i.e. heuristics and prospect theories. Sample characteristics were checked using SPSS 20. Pre-required assumptions for IRT (i.e. local independence and unidimensionality) were tested by CFA using AMOS 20.
Findings
Five items, four of which belong to heuristics (anchoring – 2, representativeness – 1 and availability bias – 1) and one belong to prospect theory (regret aversion) are sufficient to measure the behavioural attitude of real estate investors in the Indian scenario. Item discrimination ai ranged from 0.95 to 1.52 (average value 1.29), showing moderate discrimination power of the items. The items have done a pretty good job of assessing the lower level of agreement. For the higher level of agreement, the scale came out to be less precise, with less information and higher standard error of measurement.
Research limitations/implications
As the behavioural biases are often false, the study suggests the investors not to repeat these nasty biases to improve investment strategies. As they are shared and not easily changeable, understanding these biases may also help them in beating the market by acting as “noise traders”.
Practical implications
The traditional price index is incomplete in some essential respects. The inclusion of these behavioural biases into the construction of price index will greatly improve the traditional price index, policymakers should seriously think about it.
Social implications
Shelter is one of the basic needs; a dwelling unit is needed for one to stay in, develop and contribute to economy and society. If investors try to minimise these biases and policymakers keep a track of these while making strategies, mispricing in this sector can be controlled to some extent, which will ultimately help in the well-being of society.
Originality/value
This study contributes to the limited research by investigating the behavioural biases influencing the real estate market investment decisions of normal non-professional investors. It contributes to the lacking academe on real estate market in India. The study has used a psychometric test, i.e. the item response theory, for evaluating the quality of the items.
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Richa Pandey and V. Mary Jessica
The purpose of this paper is to study the effect of the 2008 global financial crisis on housing market dynamics in an emerging economy like India using quarterly data (Q4…
Abstract
Purpose
The purpose of this paper is to study the effect of the 2008 global financial crisis on housing market dynamics in an emerging economy like India using quarterly data (Q4 2008–2009 to Q1 2018–2019). The study explores the extent of linkages between housing prices, monetary policy and financial stability by explaining the nature of the shocks to the housing sector and the degree of impact of those shocks; the possibility of adverse feedback loop which is beyond the natural levels; and the usefulness of explicit and direct role of monetary policy for the housing market stability, which was the loudest demand immediately after the crisis.
Design/methodology/approach
The paper follows a three-step methodology: data transformations, a variable selection process “general-to-specific modelling” with the help of OxMetrics 6 Package, and vector autoregressive modelling with the help of EViews 10. F-test was used to describe the short-term relationships between the variables. Impulse response and variance decomposition were used to explain the type of relationship (negative or positive) and the period of the relationships, respectively.
Findings
The study finds that the housing sector is sensitive to the monetary policy shocks, whereas the contribution of the housing market shocks to the fluctuations in other market variables is not substantial, though not negligible. As far as the nature of the shocks is concerned, the observed dynamics in the real house prices are diverging from their fundamental levels. The housing market shocks are more or less static; it rules out the chances for a self-reinforcing feedback loop with the existing setup.
Research limitations/implications
The study concludes that the observed dynamics in the real house prices are diverging from their fundamental levels. Given the limitation, the researchers could extend this study by decomposing the part of the risk to the sector contributed by the other drivers, which may be inherent imperfections in housing markets, weak and unreliable wealth effect, and the presence of behavioural biases.
Practical implications
The present study finds countercyclical measures to be more useful for this sector as compared to the forward-looking monetary policy reforms in this sector. The central bank in India should continue to refrain from responding directly to the housing sector fluctuations. Investors can enjoy investing in the housing sector without any fear of the crisis as of now. The effect of speculation is small but not negligible, which enjoins the investors and the policy-makers to remain watchful. Interest rate, money supply and inflation lead (Granger-cause) the housing prices. This information is relevant for spending and investment decisions.
Social implications
The study feels that banks should avoid using monetary policy to balance the house prices. This will be beneficial both for the economy and the society, as any change in monetary policy to especially curb out surging housing prices may adversely affect the output, and finally, may lead to the deflation. The fear of deflation may cause devastating economic, financial and social effects.
Originality/value
The study contributes to the literature by shedding some new insights about the interrelationship between macroeconomic variables, housing prices and financial stability in the aftermath of the 2008–2009 financial crisis. Such types of studies are absent from emerging markets, particularly from India.
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Anindita Bhattacharjee, Neeru Sidana, Richa Goel, Anagha Shukre and Tilottama Singh
The study will add to the current discourse on the Israel-Hamas conflict by examining the impact of the war on the stock markets of trading partners. Stock market returns…
Abstract
Purpose
The study will add to the current discourse on the Israel-Hamas conflict by examining the impact of the war on the stock markets of trading partners. Stock market returns inevitably rise as globalization keeps integrating financial markets and economies around the world. Thus, the impact of war is assessed across a range of indicators that are similar in some way, such as geographic location, political climate or economic standing. Thus, the goal of this study is to investigate how the Israel-Hamas war affects trading partner countries' stock performance.
Design/methodology/approach
Event study methodology is applied using Morgan Stanley Capital Index (MSCI) as a benchmark index. The influence of the Israel-Hamas war on the world's major stock markets is evaluated using a market model. The study takes into account Israel and its 23 trading partners. To capture the locational asymmetry in the outcome, the countries are further categorized according to their geographic locations. The official declaration of war came on October 7, 2023, a non-trading day. Consequently, October 9, 2023, is designated as the event day in this study. The data was gathered between January 1, 2023, and December 31, 2023, with an estimation period of 140 days taken into account to minimize bias.
Findings
Asymmetric response is shown among the nations due to their economic standing, geographic proximity and trading links with Israel. While Austria, Greece, Egypt, Palestine and Israel had the greatest negative effects, Argentina, Japan and Chile saw significant beneficial effects. The remaining nations had little effect. The market quickly adjusted itself, eliminating anomalous returns.
Research limitations/implications
Taking into account the topic's criticality, the current work has certain limits. The study has used the daily data to limit its reach to the stock market exclusively. In the future, academics can combine high-frequency stock market data with data from other macroeconomic variables, such as currency or different commodities markets, to further their research. Furthermore, a cross-national comparison of the impact in terms of direction and intensity regarding developing global groups such as I2U2, LEVANT, BRICS, MIKTA, SCO, NATO, SAARC and OECD can provide a more comprehensive understanding in this context. To gain insight into the durability and adaptation of financial systems over time, longitudinal studies could be conducted to monitor the long-term effects of geopolitical crises on the stock markets of trading partner countries.
Practical implications
By better managing investment portfolios and evaluating potential risks associated with trading partners involved in such conflicts, investors and businesses can lessen the impact of geopolitical tensions on stock market performance. These results contribute to our understanding of how geopolitical conflicts affect stock markets.
Originality/value
This research provides an extensive analysis of the global impact of Israel-Hamas tensions on stock market volatility by taking into account trading partners. This allows for the investigation of how various market structures and economic systems react to geopolitical turmoil. The present study is one of the first attempts to look into how disturbances in one region might affect continents to better understand the dynamics of global trade and economic interdependencies.
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Sonali Singh, Richa Misra, Puneett Bhatnagr and Ekta Aggarwal
The study follows platform theory (PT) and information processing theory (IPT) to understand the determinants of customer engagement (CE) on an over-the-top (OTT) platform…
Abstract
Purpose
The study follows platform theory (PT) and information processing theory (IPT) to understand the determinants of customer engagement (CE) on an over-the-top (OTT) platform. Platform-based factors include superior streaming infrastructure (SSI), multilayer analytics (MA), secure monetisation (SM) and convenient navigability (CN), while message-based factors include content diversification (CD), interactive elements (IE) and content localisation (CL). The study further investigates the impact of CE on brand advocacy (BA).
Design/methodology/approach
The study employed the quantitative method using the cross-sectional survey to collect the data using judgemental sampling. Data were collected from 650 users of OTT services. Partial least square-structural equation modelling (PLS-SEM) was used to test the hypothesised relationship.
Findings
The impact of platform and message-based factors on CE is significant, except for the IE. As per the results, SSI is the most significant platform-based factor of CE, followed by MA, CN and SM. The study also found that CL followed by CD has a substantial influence as a message-based factor for OTT providers. The significant impact of CE is also established on BA, as per the findings of the study.
Practical implications
The outcome of the study is relevant to managers and practitioners in the highly competitive OTT industry. The new research framework emphasises the increasing importance of platform- and message-based factors for CE and BA. The study will also assist OTT providers in guiding strategic and operational decisions in the context of the OTT industry to increase customer loyalty in emerging economies.
Originality/value
The study introduces a novel approach to assessing OTT subscriber engagement by integrating PT and IPT. The final outcome of the research model is BA, which is highly relevant for an OTT operator as it helps retain existing subscribers and attract new ones through BA.
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The purpose of this study is to examine the role of contemporary consumer-brand relationships in predicting brand sacredness, brand fidelity and propensity to spread word of mouth…
Abstract
Purpose
The purpose of this study is to examine the role of contemporary consumer-brand relationships in predicting brand sacredness, brand fidelity and propensity to spread word of mouth (WOM) in the context of “halal” cosmetic brands.
Design/methodology/approach
The proposed research framework has been empirically tested by collecting responses from 403 Muslim respondents of diverse demographics. Structural equation modelling has been used for exploring the underlying relationships between emotions associated with halal brands.
Findings
All the proposed hypotheses were positively significant, thus confirming that brand love is significantly affected by brand trust, brand image, self-congruence and brand experience. Further, brand love acts as a significant determinant in shaping brand sacredness, brand fidelity and WOM.
Research limitations/implications
The study has made a significant contribution by exploring the intensity of brand love and its effect on relationship-maintenance triad in halal cosmetic brands in India.
Practical implications
Marketers must understand the emotional side of brands to create synergy in their marketing efforts. Moreover, in the case of religious or faith-based brands, attainment of the highest order of brand love can play a revolutionary role for long-term growth.
Originality/value
In the context of halal cosmetic brands in India, this study has offered a new perspective by extending the literature on consumer-brand relationships. The use of brand fidelity and brand sacredness has enhanced the effectiveness of emotions with which consumers have been looking at brands for ages.
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Diwakar Singh and Richa Awasthy
This study aims to present a sustainability framework that advances the conceptual understanding of the role of spirituality in the context of social entrepreneurship.
Abstract
Purpose
This study aims to present a sustainability framework that advances the conceptual understanding of the role of spirituality in the context of social entrepreneurship.
Design/methodology/approach
Through a systematic literature review of spirituality at both the individual and organisational levels, the triple bottom line framework of sustainability, and business ethics, this study offers a sustainability framework for social entrepreneurship. It explains how spirituality at these levels influences various dimensions of social entrepreneurship and helps achieve social, economic, environmental and ethical outcomes.
Findings
The study proposed that individuals with spiritual practices are more likely to engage in entrepreneurial, social, ethical and environmental orientations, while organisations with spiritual practices are more likely to engage in employee, market and ethical orientations. Spiritual capability can serve as a strategic advantage and contribute to the sustainable development of social enterprises.
Originality/value
This study makes three significant contributions. First, it presents an emergent framework for integrating spirituality (at both individual and organisational levels) and sustainability within the social entrepreneurship literature, offering implications for both social entrepreneurs and social enterprises. Second, this study proposes incorporating ethics as the fourth dimension of sustainability and argues that spirituality can act as a catalyst for achieving sustainability in social entrepreneurship. Third, this study identifies seven critical dimensions of social entrepreneurship: spiritual capabilities, entrepreneurial orientation, social orientation, environmental orientation, market orientation, ethical orientation and employee orientation, all of which contribute to ethical and sustainable development.
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This paper aims to investigate the role of bank reputation (via its proposed dimensions) in influencing bank trust and its subsequent effect on the loyalty of the customer. The…
Abstract
Purpose
This paper aims to investigate the role of bank reputation (via its proposed dimensions) in influencing bank trust and its subsequent effect on the loyalty of the customer. The study has also explored the moderating role of bank type (public vs private bank) in the relationship between the dimensions of bank reputation and bank trust.
Design/methodology/approach
A total of 651 questionnaires were distributed to the customers of public and private bank, whereas only 375 usable responses were obtained. Questionnaires were given to the respondents through the visit of few interviewers to several private and public banks in Delhi and NCR region during December 2019 to February 2020. A screening question was included in the beginning of the questionnaire (i.e. Do you trust your bank?). Non-random sampling technique was used for data collection, and the research design was cross-sectional. The proposed framework was tested with the help of structural equation modeling.
Findings
The findings of the study show that all the proposed dimensions (i.e. service quality, stability, customer centricism and corporate performance) of corporate reputation/bank reputation significantly affect bank trust. Also, the effect of bank trust on loyalty was found significant. Bank type emerged as a significant moderator between the dimensions of bank reputation and bank trust. It shows that the effect of service quality, stability, customer centricism and corporate performance on bank trust significantly differs in public vs private banks. Customer centricism is perceived to be high in private banks, whereas all the other three dimensions are obtained to be higher in public sector banks according to the findings of the study.
Practical implications
The presented framework in the study has covered all the significant antecedents of bank trust and its subsequent effect on loyalty. The findings of the paper are useful to several stakeholders, including bank managers, regulators, investors and depositors. The study shows that bank reputation affects trust and loyalty in the long run. This relationship can be used by bank managers for gaining the trust of customers and building loyalty. It also helps in making strategies by banks for targeting customers. Stability is a very crucial factor for a developing economy. The bank regulators can use these results for ensuring the soundness of the banking system and for providing a stable environment for customers. Bank depositors and investors can also use the findings of the study for analyzing the factors that affect their bank selection decision.
Originality/value
The present research shows that bank type moderates the relationship of the dimensions of bank reputation and bank trust in an emerging economy in Asia.
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Richa Srivastava, M.A. Sanjeev and Srikant Gupta
Heightened public concerns for the global environment due to human overexploitation have given rise to many green product initiatives by businesses. Green cosmetics (GC) are…
Abstract
Purpose
Heightened public concerns for the global environment due to human overexploitation have given rise to many green product initiatives by businesses. Green cosmetics (GC) are products developed and marketed based on ecological sustainability and have shown increasing consumer appeal worldwide. The current research investigates the antecedents of green cosmetics consumption among Indian GC users, hitherto un-investigated comprehensively.
Design/methodology/approach
The study is a cross-sectional pairwise comparison of green evaluation criteria for cosmetics using an expert panel of thirty Indian cosmetic users using a fuzzy analytic hierarchy process (F-AHP) and investigate the impact of a comprehensive list of antecedents on the multi-criteria category consumption decision.
Findings
The study results indicate that perceived consumer effectiveness is the most critical factor for green cosmetics consumption in India, followed by brand trust, behavioural control, and environmental effectiveness. The least important factors are price and social norms.
Research limitations/implications
As the GC category is at nascent stage in India the investigation is limited to the GC category innovators – a set of people high in intellectual and financial resources. The study is also limited to women users as the male cosmetic market in the country is still very small.
Practical implications
The study results can help marketers in designing and implementing GC related marketing strategies to deliver higher customer value to the target segment. Academicians can use the study results for better prediction of category related behaviour of consumers.
Social implications
The study results will help promote GC category adoption and usage which can benefit the environment and consumer health.
Originality/value
The study contributes to literature and practice by assessing a comprehensive set of critical antecedents to GC adoption using a novel approach of F-AHP and an expert user panel. The study results offer insights to marketers that can be used to develop suitable strategies to convert non-GC users into GCs in India and similar markets, improving category penetration and benefitting marketers, retailers, users, and the environment.