Match!
Daniel W. Richards
RMIT University
Behavioral economicsEconomicsDual process theoryDisposition effectSocial psychology
9Publications
4H-index
53Citations
What is this?
Publications 9
Newest
#1Daniel W. Richards (RMIT: RMIT University)H-Index: 4
#2Helen RobertsH-Index: 3
Last. Rosalind H. Whiting (University of Otago)H-Index: 11
view all 3 authors...
We investigate the gender imbalance in the financial advising industry by analysing 32 in-depth qualitative interviews of female and male financial advisers in Australia and New Zealand. Using the ...
Source
#1Daniel W. Richards (RMIT: RMIT University)H-Index: 4
#2Elizabeth Morton (RMIT: RMIT University)H-Index: 1
Abstract: Many individuals entrust financial advisors to navigate through important financial decisions, yet extant research and persistent scandals bring the effectiveness of advice into question. In examining the Australian financial advice sector, we determine when financial advice can be provided in a client’s best interest and formulate a model differentiating types of financial advice and their relationship to best interest practice. We extend this model to form an integrated framework con...
Source
#1Daniel W. Richards (RMIT: RMIT University)H-Index: 4
#2Gizelle D. Willows (UCT: University of Cape Town)H-Index: 3
Abstract Individual investors’ demand for trading activity will vary over time according to their availability and desire to trade. Academic research has primarily investigated market wide trading activity, showing low trading activity on Mondays and high activity at the start and end of each day. It remains unknown whether individual investors’ trading behavior mimics these market patterns. Instead research on individual investors shows that they overtrade in general and are less likely to trad...
Source
#1Daniel W. Richards (OU: Open University)H-Index: 4
#2Mark Fenton-O'Creevy (OU: Open University)H-Index: 16
Last. Devendra Kodwani (OU: Open University)H-Index: 5
view all 4 authors...
We report research on investor susceptibility to the disposition effect, a financial decision-making bias where investors have a greater propensity to realize gains than realize losses. Despite theoretical arguments for the influence of emotions, research on susceptibility to this bias, on real investors, has relied primarily on socio-demographic explanations. Some experimental research on student populations has considered emotions more directly, but has not addressed differences in individual ...
2 CitationsSource
#1Daniel W. Richards (RMIT: RMIT University)H-Index: 4
#2Gizelle D. Willows (UCT: University of Cape Town)H-Index: 3
Research has shown that investors trade too frequently, and that this overtrading lowers investment return. This paper examines the characteristics of investors who trade frequently. Multivariable regression analysis of over three years of trading data from 7200 UK investors enabled identification of numerous characteristics significantly and positively associated with frequent trading. These were male gender, younger age, use of stop losses and use of multiple mediums of trading, including the ...
4 CitationsSource
#1Daniel W. RichardsH-Index: 4
Last. Devendra KodwaniH-Index: 5
view all 4 authors...
#1Daniel W. Richards (OU: Open University)H-Index: 4
#2Janette Rutterford (OU: Open University)H-Index: 12
Last. Mark Fenton-O'Creevy (OU: Open University)H-Index: 16
view all 4 authors...
The disposition effect is an investment bias where investors hold stocks at a loss longer than stocks at a gain. This bias is associated with poorer investment performance and exhibited to a greater extent by investors with less experience and less sophistication. A method of managing susceptibility to the bias is through use of stop losses. Using the trading records of UK stock market individual investors from 2006 to 2009, this paper shows that stop losses used as part of investment decisions ...
8 CitationsSource
#1Daniel W. RichardsH-Index: 4
Research from the behavioural finance paradigm has detected bias in investors' decision making. One such bias, the disposition effect, shows that investors are reluctant to sell investments at a loss, yet are eager to sell investments at a gain. Investors vary in the extent to which they exhibit the disposition effect and research to date has found that an investor's level of sophistication and amount of experience can somewhat predict their susceptibility to this bias. Despite the disposition e...
#1Mark Fenton-O'Creevy (OU: Open University)H-Index: 16
#2Jeffrey Todd LinsH-Index: 2
Last. Kristina Schaaff (Forschungszentrum Informatik)H-Index: 6
view all 6 authors...
We describe a psychophysiological study of the emotion regulation of investment bank traders. Building on work on the role of emotions in financial decision-making, we examine the relationship between market conditions, trader experience and emotion regulation whilst trading, as indexed by high frequency heart rate variability (HF HRV). We find a significant inverse relationship between HF HRV and market volatility and a positive relationship between HF HRV and trader experience. We argue that t...
31 CitationsSource
1