Stated Preferences for Firm’s Characteristics and Asset Allocation Decisions


Tan, Siow Hooi and Khan, Mohammad Tariqul Islam (2019) Stated Preferences for Firm’s Characteristics and Asset Allocation Decisions. Global Business Review. ISSN 0972-1509

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The present article investigates the relationship between stated preferences for firm’s characteristics and asset allocation decisions. Data from the survey of retail investors in Malaysia are used for estimations by employing binary logit and ordered logistic models. The analyses show that preferences for a firm’s value characteristics, quality of management and product characteristics, risky characteristics, liquidity and trading volume characteristics affect holding of a particular financial asset, number of asset holding, quite diversified portfolio holding and hypothetical asset allocation. However, a firm’s characteristics have no influence on fully diversified portfolio. In Malaysia, the regulators may consider the investor’s preferences for specific firm’s characteristics in designing policies to reduce the apparent structural imbalance in the capital market.

Item Type: Article
Uncontrolled Keywords: Asset allocation, preferences for firm’s characteristics, investors, Malaysia
Subjects: H Social Sciences > HG Finance > HG4501-6051 Investment, capital formation, speculation > HG4530 Investment companies. Investment trusts. Mutual funds
Divisions: Faculty of Business (FOB)
Faculty of Management (FOM)
Depositing User: Ms Suzilawati Abu Samah
Date Deposited: 09 Feb 2022 02:20
Last Modified: 09 Feb 2022 02:20


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