1. Corporate marketing in the stock market: The impact of company
identification on individuals' investment behaviour
Document Information:
Title: Corporate marketing in the stock market: The impact of company identification on
individuals' investment behaviour
Author(s): Jaakko Aspara, (Department of Marketing and Management, Aalto University
School of Economics (formerly Helsinki School of Economics (HSE)), Helsinki,
Finland), Henrikki Tikkanen, (Department of Marketing and Management, Aalto
University School of Economics (formerly Helsinki School of Economics (HSE)),
Helsinki, Finland)
Citation: Jaakko Aspara, Henrikki Tikkanen, (2011) "Corporate marketing in the stock market:
The impact of company identification on individuals' investment behaviour",
European Journal of Marketing, Vol. 45 Iss: 9/10, pp.1446 - 1469
Article
type:
Research paper
DOI: 10.1108/03090561111151844 (Permanent URL)
Publisher: Emerald Group Publishing Limited
Abstract: Purpose – The purpose of this paper is to contribute to the corporate marketing literature by
examining how an individual's identification with a company influences their willingness to
invest in the company's shares.
Design/methodology/approach – A set of hypotheses was developed, based on theory, and
survey data were obtained from 440 individuals in order to test the hypotheses. The data
pertained to the individuals' recent decisions to invest in particular companies' shares, and to
the degree of their identification with the companies' identities. The analysis method was
PLS path modelling.
Findings – First, an individual's identification with a company was found to have a positive
effect on their determination to invest in the company's shares rather than in other
companies' shares that have approximately similar expected financial returns/risks. Second,
company identification was found to elicit preparedness to invest in the company's shares
with lower financial returns expected from the shares than from other shares. Both
influences were partly mediated by the individual's willingness to give support to a
company with which they identify.
Research limitations/implications – The study pertains to company identification of

2. individual investors; institutional (and professional) investors are beyond the scope of the
paper. Also, the sample focuses on investors in a single country (Finland), and the data may
involve some self-reporting and retrospection biases.
Practical implications – Considering corporate marketing in the stock markets, individuals
who identify with the company are identified as worthwhile targets when the company
seeks to attract new investors.
Originality/value – The paper provides theoretical grounding for and empirical evidence of
the positive influence of company identification on individuals' willingness to invest in
companies' shares. It is a novel finding for corporate marketing literature that individuals
express their identification with a corporate brand also through investing in its shares.
2. Investors’ Perception towards Impact of Macroeconomic
Performance on Stock Market Behavior
ISSN 2277- 5846
THE INTERNATIONAL JOURNAL OF MANAGEMENT
Dr. Ruta Khaparde
Associate Professor, Bharati Vidyapeeth’s Institute of Management Studies and Research
Navi Mumbai, (MH), India
Anjali Bhute
Assistant Professor, Pillai Institute of Management Studies and Research
Navi Mumbai, (MH), India

3. Abstract:
Investment is the current commitment of funds towards any financial or non-financial
instruments in order to gain profitable returns at any future date. An investment is always made
with certain specific objectives in mind. An investor with or without investment knowledge is
always subconsciously alert and clear with his or her investment objectives. The stock market is
one of the most interested and inquisitive area for investors who always want to create massive
wealth in the shortest time phase since stocks are the most wonderful category of financial
instruments and one of the greatest tools ever invented for building financial wealth. Investors
are the key stakeholders in the stock market operations. There perception and attitude towards
anything related to the stock market is of utmost importance. The perception of investors differs
around on the basis of different factors like age, income, experience of investing, investment
objectives and individual social needs. The present study involves the presentation of investor’s
perception towards the impact of macroeconomic performance on stock market behavior. The
perception has been studied and analyzed on the basis of individual factors with respect to
different macroeconomic variables seems to be bothering the stock market behavior.
3. A study on investors’ personality characteristics and behavioral biases: Conservatism
bias and availability bias in the Tehran Stock Exchange
Authors: Mahmoud Moradi, Zeinab Mostafaei, Mehdi Meshki
DOI: 10.5267/j.msl.2013.03.003
Keywords: Conservatism Bias, Availability Bias, Behavioral Finance, Personality
Abstract: Most economic and finance theories are based on the assumption that during
economic decision making, people would act totally rational and consider all available
information. Nevertheless, behavioral finance focuses on studying of the role of psychological
factors on economic participants’ behavior. The study shows that in real-world environment,
people are influenced by emotional and cognitive errors and may make irrational financial
decisions. In many cases, the participants of financial markets are not aware of their talents for
error in decision making, so they are dissatisfied with their investments by considering some
behavioral biases decisions. These decisions may often yield undesirable outcomes, which could
influence economy, significantly. This paper presents a survey on the relationship between
personality dimensions with behavioral biases and availability bias among investment managers
in the Tehran Stock Exchange using SPSS software, descriptive and inferential statistics. The
necessary data are collected through questionnaire and they are analyzed using some statistical
tests. The preliminary results indicate that there is a relationship between personality dimensions

4. and behavioral biases like conservatism bias and availability bias among the investors in the
Tehran Stock Exchange.
4.Investor Psychology and Security Market Under- and Overreactions
1. Kent Daniel,
2. David Hirshleifer and
3. Avanidhar Subrahmanyam†
Article first published online: 17 DEC 2002
DOI: 10.1111/0022-1082.00077
ABSTRACT
We propose a theory of securities market under- and overreactions based on two well-known
psychological biases: investor overconfidence about the precision of private information; and biased self-attribution,
which causes asymmetric shifts in investors' confidence as a function of their investment outcomes. We show that
overconfidence implies negative long-lag autocorrelations, excess volatility, and, when managerial actions are
correlated with stock mispricing, public-event-based return predictability. Biased self-attribution adds positive short-
lag autocorrelations (“momentum”), short-run earnings “drift,” but negative correlation between future returns and
long-term past stock market and accounting performance. The theory also offers several untested implications and
implications for corporate financial policy.
5.Positive Feedback Investment Strategies and Destabilizing Rational
Speculation
1. J. BRADFORD DE LONG†
,
2. ANDREI SHLEIFER†
,
3. LAWRENCE H. SUMMERS†
and
4. ROBERT J. WALDMANN†
Article first published online: 30 APR 2012
DOI: 10.1111/j.1540-6261.1990.tb03695.x
ABSTRACT
Analyses of rational speculation usually presume that it dampens fluctuations caused by “noise” traders. This is not
necessarily the case if noise traders follow positive-feedback strategies—buy when prices rise and sell when prices
fall. It may pay to jump on the bandwagon and purchase ahead of noise demand. If rational speculators' early buying
triggers positive-feedback trading, then an increase in the number of forward-looking speculators can increase
volatility about fundamentals. This model is consistent with a number of empirical observations about the correlation
of asset returns, the overreaction of prices to news, price bubbles, and expectations.
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