Investors’ Heterogeneous Preferences for Structured Financial Products in China: The Impact of Demographic Characteristics
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng por |
Título da fonte: | Revista Brasileira de Gestão de Negócios (Online) |
Texto Completo: | https://rbgn.fecap.br/RBGN/article/view/4187 |
Resumo: | Purpose – Structured financial products (SPs) have become very popular with retail investors in recent years. Investors’ preferences play a critical role when investing in SPs. The objective of this study is to understand SP investment behavior by investigating Chinese investors’ heterogeneous preferences for choosing wealth management products (WMPs) with certain attributes.Theoretical framework – Investors with different demographic characteristics show different preferences in their SP investments.Design/methodology/approach – We employ the choice experiment (CE) method and examine preference heterogeneity using the multinomial logit (MNL) and the mixed logit (MXL) models.Findings – (i) The attributes of small bank, minimum amount, non-guaranteed floating return and guaranteed floating return significantly affect the choice when purchasing WMPs. (ii) There are significant heterogeneous preferences for minimum amount. (iii) These four characters are the sources of heterogeneous preferences for minimum amount.Practical & social implications of research – This information can contribute to understanding the heterogeneous preferences of investors, which can help in designing marketable WMPs to target different kinds of investors.Originality/value – The main contribution of the research is it examines investors’ heterogeneous preferences for SPs. The study provides empirical evidence of which attributes of structured products significantly affect investor preferences. It also reveals which characteristics of investors affect their heterogeneous preferences. Keywords: Structured financial products, heterogeneous preferences, choice experiments, mixed logit model, behavior. |
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Investors’ Heterogeneous Preferences for Structured Financial Products in China: The Impact of Demographic CharacteristicsPurpose – Structured financial products (SPs) have become very popular with retail investors in recent years. Investors’ preferences play a critical role when investing in SPs. The objective of this study is to understand SP investment behavior by investigating Chinese investors’ heterogeneous preferences for choosing wealth management products (WMPs) with certain attributes.Theoretical framework – Investors with different demographic characteristics show different preferences in their SP investments.Design/methodology/approach – We employ the choice experiment (CE) method and examine preference heterogeneity using the multinomial logit (MNL) and the mixed logit (MXL) models.Findings – (i) The attributes of small bank, minimum amount, non-guaranteed floating return and guaranteed floating return significantly affect the choice when purchasing WMPs. (ii) There are significant heterogeneous preferences for minimum amount. (iii) These four characters are the sources of heterogeneous preferences for minimum amount.Practical & social implications of research – This information can contribute to understanding the heterogeneous preferences of investors, which can help in designing marketable WMPs to target different kinds of investors.Originality/value – The main contribution of the research is it examines investors’ heterogeneous preferences for SPs. The study provides empirical evidence of which attributes of structured products significantly affect investor preferences. It also reveals which characteristics of investors affect their heterogeneous preferences. Keywords: Structured financial products, heterogeneous preferences, choice experiments, mixed logit model, behavior.Objetivo – Os produtos financeiros estruturados (SPs) tornaram-se muitopopulares entre os investidores de varejo nos últimos anos. A preferência dosinvestidores desempenha um papel crítico para investir em SPs. O objetivo desteestudo é entender o comportamento de investimento nos SPs investigando aspreferências heterogêneas dos investidores chineses para a escolha de WMPs comdeterminados atributos.Referencial teórico – Os investidores com diferentes características demográficasapresentam diferentes preferências em seus investimentos em SPs.Metodologia – Empregamos o método de experimentos de escolha (CE) eexaminamos a heterogeneidade de preferência usando os modelos logit multinomial(MNL) e logit misto (MXL).Resultados – (i) Os atributos “banco pequeno”, “valor mínimo”, “retorno variávelnão garantido” e “retorno variável garantido” afetam significativamente a escolhade compra dos WMPs. (ii) Existem preferências heterogêneas significativas porvalor mínimo. (iii) Esses quatro elementos são as fontes de preferência heterogêneapor valor mínimo.Implicações práticas e sociais da pesquisa – A pesquisa oferece informaçõesque podem contribuir para a compreensão das preferências heterogêneasdas características dos investidores, o que pode ajudar a desenvolver WMPscomercializáveis para atingir diferentes tipos de investidores.Contribuições – A principal contribuição da pesquisa é examinar as preferênciasheterogêneas dos investidores por SPs. O estudo fornece evidências empíricas dequais atributos de produtos estruturados afetam significativamente as preferênciasdos investidores. Também revela quais características dos investidores afetam suaspreferências heterogêneas.FECAP2022-10-11info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionAvaliado por paresapplication/pdfapplication/pdfhttps://rbgn.fecap.br/RBGN/article/view/418710.7819/rbgn.v24i3.4187Review of Business Management; Vol. 24 No. 3 (2022)RBGN Revista Brasileira de Gestão de Negócios; Vol. 24 Núm. 3 (2022)RBGN - Revista Brasileira de Gestão de Negócios; v. 24 n. 3 (2022)1983-08071806-4892reponame:Revista Brasileira de Gestão de Negócios (Online)instname:Fundação Escola de Comércio Álvares Penteado (FECAP)instacron:FECAPengporhttps://rbgn.fecap.br/RBGN/article/view/4187/1869https://rbgn.fecap.br/RBGN/article/view/4187/1870Copyright (c) 2022 Review of Business Managementinfo:eu-repo/semantics/openAccessHan, Xiyan Liu, Wei 2022-10-11T21:15:03Zoai:ojs.emnuvens.com.br:article/4187Revistahttp://rbgn.fecap.br/RBGN/indexhttps://rbgn.fecap.br/RBGN/oai||jmauricio@fecap.br1983-08071806-4892opendoar:2022-10-11T21:15:03Revista Brasileira de Gestão de Negócios (Online) - Fundação Escola de Comércio Álvares Penteado (FECAP)false |
dc.title.none.fl_str_mv |
Investors’ Heterogeneous Preferences for Structured Financial Products in China: The Impact of Demographic Characteristics |
title |
Investors’ Heterogeneous Preferences for Structured Financial Products in China: The Impact of Demographic Characteristics |
spellingShingle |
Investors’ Heterogeneous Preferences for Structured Financial Products in China: The Impact of Demographic Characteristics Han, Xiyan |
title_short |
Investors’ Heterogeneous Preferences for Structured Financial Products in China: The Impact of Demographic Characteristics |
title_full |
Investors’ Heterogeneous Preferences for Structured Financial Products in China: The Impact of Demographic Characteristics |
title_fullStr |
Investors’ Heterogeneous Preferences for Structured Financial Products in China: The Impact of Demographic Characteristics |
title_full_unstemmed |
Investors’ Heterogeneous Preferences for Structured Financial Products in China: The Impact of Demographic Characteristics |
title_sort |
Investors’ Heterogeneous Preferences for Structured Financial Products in China: The Impact of Demographic Characteristics |
author |
Han, Xiyan |
author_facet |
Han, Xiyan Liu, Wei |
author_role |
author |
author2 |
Liu, Wei |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Han, Xiyan Liu, Wei |
description |
Purpose – Structured financial products (SPs) have become very popular with retail investors in recent years. Investors’ preferences play a critical role when investing in SPs. The objective of this study is to understand SP investment behavior by investigating Chinese investors’ heterogeneous preferences for choosing wealth management products (WMPs) with certain attributes.Theoretical framework – Investors with different demographic characteristics show different preferences in their SP investments.Design/methodology/approach – We employ the choice experiment (CE) method and examine preference heterogeneity using the multinomial logit (MNL) and the mixed logit (MXL) models.Findings – (i) The attributes of small bank, minimum amount, non-guaranteed floating return and guaranteed floating return significantly affect the choice when purchasing WMPs. (ii) There are significant heterogeneous preferences for minimum amount. (iii) These four characters are the sources of heterogeneous preferences for minimum amount.Practical & social implications of research – This information can contribute to understanding the heterogeneous preferences of investors, which can help in designing marketable WMPs to target different kinds of investors.Originality/value – The main contribution of the research is it examines investors’ heterogeneous preferences for SPs. The study provides empirical evidence of which attributes of structured products significantly affect investor preferences. It also reveals which characteristics of investors affect their heterogeneous preferences. Keywords: Structured financial products, heterogeneous preferences, choice experiments, mixed logit model, behavior. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-10-11 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Avaliado por pares |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://rbgn.fecap.br/RBGN/article/view/4187 10.7819/rbgn.v24i3.4187 |
url |
https://rbgn.fecap.br/RBGN/article/view/4187 |
identifier_str_mv |
10.7819/rbgn.v24i3.4187 |
dc.language.iso.fl_str_mv |
eng por |
language |
eng por |
dc.relation.none.fl_str_mv |
https://rbgn.fecap.br/RBGN/article/view/4187/1869 https://rbgn.fecap.br/RBGN/article/view/4187/1870 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2022 Review of Business Management info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2022 Review of Business Management |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/pdf |
dc.publisher.none.fl_str_mv |
FECAP |
publisher.none.fl_str_mv |
FECAP |
dc.source.none.fl_str_mv |
Review of Business Management; Vol. 24 No. 3 (2022) RBGN Revista Brasileira de Gestão de Negócios; Vol. 24 Núm. 3 (2022) RBGN - Revista Brasileira de Gestão de Negócios; v. 24 n. 3 (2022) 1983-0807 1806-4892 reponame:Revista Brasileira de Gestão de Negócios (Online) instname:Fundação Escola de Comércio Álvares Penteado (FECAP) instacron:FECAP |
instname_str |
Fundação Escola de Comércio Álvares Penteado (FECAP) |
instacron_str |
FECAP |
institution |
FECAP |
reponame_str |
Revista Brasileira de Gestão de Negócios (Online) |
collection |
Revista Brasileira de Gestão de Negócios (Online) |
repository.name.fl_str_mv |
Revista Brasileira de Gestão de Negócios (Online) - Fundação Escola de Comércio Álvares Penteado (FECAP) |
repository.mail.fl_str_mv |
||jmauricio@fecap.br |
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