{"id":7969,"date":"2023-04-16T18:17:36","date_gmt":"2023-04-16T10:17:36","guid":{"rendered":"https:\/\/www.ukm.my\/jem\/?post_type=article&#038;p=7969"},"modified":"2023-12-18T11:48:29","modified_gmt":"2023-12-18T03:48:29","slug":"risk-averse-behaviour-in-emerging-markets-the-role-of-economic-indicators-bank-characteristics-and-developed-markets","status":"publish","type":"article","link":"https:\/\/www.ukm.my\/jem\/article\/risk-averse-behaviour-in-emerging-markets-the-role-of-economic-indicators-bank-characteristics-and-developed-markets\/","title":{"rendered":"Risk-Averse Behaviour in Emerging Markets: The Role of Economic Indicators, Bank Characteristics and Developed Markets"},"content":{"rendered":"<p><em>This study aims to examine <\/em><em>the impact of economic indicators and bank characteristics on investors&#8217; risk-averse behaviour in emerging countries. It further analyses the influence of the developed markets on the risk-averse behaviour of the emerging markets. This study specifically explores the tendency of risk-averse behaviour among investors, as described in the Prospect theory. Using India, Indonesia, Malaysia and China as the sample countries over the 2010-2021 period, this study employs panel data regression with excess return, three-factor alpha, five-factor alpha and six-factor alpha models for robustness testing. \u00a0The results showed that the economic indicators, namely <\/em><em>IMF growth forecast, GDP growth rate, and real interest rate significantly impact risk-averse behaviour. Bank characteristic of non-performing loans also explains risk-averse behaviour. In addition, the US as a developed market is significantly correlated with investors&#8217; behaviours in emerging markets. <\/em><em>The results of the quantile regression showed that Malaysian investors have the highest tendency towards risk-averse behaviour, followed by Indonesia, China and India. This study may assist regulators, policymakers and practitioners in determining the tendency of risk-averse behaviour. The respective parties should regularly monitor, control and regulate investors&#8217; risk aversion as the contagion effect of extreme irrational behaviour can lead to market crash and financial crisis. <\/em><\/p>\n","protected":false},"template":"","tags":[1558,1559,1557,1560,1561],"jel-code":[1268,1562,1563,1564],"article-type":[1329],"class_list":["entry","author-asriwn","post-7969","article","type-article","status-publish","tag-bank-characteristics","tag-emerging-market","tag-investors-reaction","tag-prospect-theory","tag-risk-averse","jel-code-e58","jel-code-e70","jel-code-f30","jel-code-g40","article-type-normal-article"],"_links":{"self":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article\/7969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article"}],"about":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/types\/article"}],"version-history":[{"count":1,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article\/7969\/revisions"}],"predecessor-version":[{"id":7972,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article\/7969\/revisions\/7972"}],"wp:attachment":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/media?parent=7969"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/tags?post=7969"},{"taxonomy":"jel-code","embeddable":true,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/jel-code?post=7969"},{"taxonomy":"article-type","embeddable":true,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article-type?post=7969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}