The effect of demographics and personality on investment choice among Essay

The effect of demographics and personality on investment choice among UK investors - Essay Example Many studies have been undertaken across the world by scholars as well as academicians in the field of behavioral finance to explore what all psychological and demographic factors affect personal investment decisions and choice among alternatives. The study entitled "Risk Taking and Problem Context in the Domain of Losses: An Expected Utility Analysis" by John C. Hershey and Schoemaker in 1980 observes that women investors are more risk averse than men as regards gamble is concerned (Hershey 1980). Another popular study on the gender practices of investing; the researchers remark that both men and women are equally successful in investment decisions and there found no significance difference in investment decisions between male and female groups (Hudgen 1985). In an empirical study among men and women investors in auctions and lotteries undertaken by W. V Harlow and Keith Brown document that men prefer to take more risk than women as regards lottery and auction investments are concer ned (Harlow 1990). In another significant study on investment behaviour among individual investors considering their income level William Riley and K Victor Chow attempt to remark that "relative risk aversion decreases as one rises above the poverty level and decreases significantly for the very wealthy. It also decreases with age-but only up to a point. After age 65 (retirement), risk aversion increases with age" (Riley 1992). However, the authors speculate that "education, income and wealth are all highly correlated, so the relationship may be a function of wealth rather than education" (Riley 1992). In a research paper entitled "Gender Differences in Risk Behavior in Financial-Decision-Making: An Experimental Analysis", it is found that regardless of familiarity and framing, costs or ambiguity, women prefer investments with lower risk than moderate and high risk investments avenues (Powell 1997) . The main contention of the study of N. Jianakoplos and Bernasek in 1998 is that wom en are likely to exhibit more risk aversion characteristics than men when it comes to investment in defined contribution pension assets (Jianakoplos 1998). In the paper "Gender Differences in Risk Taking: A Meta-analysis", the authors conclude that women would like to take less risk than men (Brynes 1999). Schooley Diane K and Debra Drecnik Worden in their study in 2003 document that educated investors, especially those having education higher than secondary level tend to part their hard earned money in risky portfolios (Schooley 2003). The paper also finds that age and proportion of equity holding are positively correlated. In an interesting and popular study entitled "Risk Aversion and Personality Type" by G. Filbeck, Hatfield P. and Horvath P. in 2005, the authors conclude that the relation between personality type and individual ex ante EUT risk tolerance is non-linear in form (Filbeck 2005). Reviewing the aforementioned studies and papers, the present study attempts to explore the effect of demographic and personality traits on individual investment decision

Team Effectiveness Essay Example | Topics and Well Written Essays - 750 words

Team Effectiveness - Essay Example Poorly managed teams on the other hand will always end in irreconcilable failure. Effectiveness of any given team depends on the leadership, roles assigned and the basis of its formation. It is always imperative for team members to understand all the defining factors and forces set to drive the given team. Effective teams always depict certain unique characteristics that are different from failing or ineffective teams. One of the common and basic characteristics of any effective team relies on the listening skills and levels of understanding of all individual members within the team. Most successful teams comprise of members with good if not excellent listening skills (Felthan 2012). Good listening skills enable members of a given team to understand issues very quickly and seek clarification where necessary. Good listening skills empowers individual members of a team to contribute to discussions and present constructive questions targeted at enhancing the level of performance of the given team. Unlike team comprised of members with poor listening skills, teams with members of good listening skills will be able to reach to quick deliberations and save time as members have the capability to paraphrase and summarize concepts. However, fundamental inter-member understanding maybe to a team, disagreements and disputes are healthy for any growth oriented team (Yarbrough 2009, p.27). Not all members in a given team will feel satisfied with every presentation, proposal of discussion of the team. Such dissatisfactions have the potential of creating room for clarification and exemplification for every individual to understand the grounds and factors behind certain proposal or presentation. Members require tolerance to each other and show no signs of withdrawal from any fierce discussion triggered by misunderstanding by any given member. For a team to be effective and operate smoothly there has to be clear demarcation of roles and statement of duties and