Evaluating Efficacy of Statutory Disclaimers of Mutual Funds on Novice and Seasoned Investors

Q2 Business, Management and Accounting

Business Perspectives and Research Pub Date : 2023-03-13 DOI:10.1177/22785337221148558

Medha Kulkarni, Leena B. Dam, Feeroj Nasirkhan Pathan, Vaibhav Vasundekar

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Abstract

The purpose of the present study was to empirically examine the efficacy of statutory disclosures in the Indian mutual fund industry. Whether the disclaimers aid investors in their decision-making process was investigated. The study made a distinction between type of investors (novice and seasoned investors) as disclaimers affect differently on investor’s belief, attitude and ability to take informed decision. Survey was conducted using a structured questionnaire to evaluate the responses of 388 investors, consisting of 243 novice and 145 seasoned investors. Data was analyzed using mean comparison, independent t-test, and logistic regression model. Results revealed that statutory disclaimers were less effective on seasoned investors compared to novice investors. This suggests seasoned investors process the disclaimer information differently. Novice investors systematically process the disclaimers of mutual fund advertising, and their investment decision was meaningfully affected by the disclaimers. The study offers specific suggestions for stakeholders working in the area of behavioral finance, highlighting the importance of considering the dual process theory of information processing. To the best of authors knowledge, this study is the first of its kind to evaluate the efficacy of mandatory disclaimers in the Indian mutual fund industry, providing unique insights for future research in the field.

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评估共同基金法定免责声明对新手和资深投资者的效力

本研究的目的是实证检验印度共同基金行业法定披露的有效性。调查了免责声明是否有助于投资者的决策过程。该研究区分了投资者类型（新手和经验丰富的投资者），因为免责声明对投资者的信念、态度和做出知情决策的能力有不同的影响。调查采用结构化问卷对388名投资者的回答进行了评估，其中包括243名新手和145名经验丰富的投资者。数据采用均值比较、独立t检验和逻辑回归模型进行分析。结果显示，与新手投资者相比，法定免责声明对经验丰富的投资者的效果较差。这表明经验丰富的投资者对免责声明信息的处理方式有所不同。新手投资者系统地处理共同基金广告的免责声明，他们的投资决策受到免责声明的显著影响。该研究为行为金融领域的利益相关者提供了具体的建议，强调了考虑信息处理的双重过程理论的重要性。据作者所知，这项研究是第一项评估印度共同基金行业强制性免责声明效力的研究，为该领域的未来研究提供了独特的见解。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Business Perspectives and Research Business, Management and Accounting-Business and International Management

CiteScore

5.00

自引率

0.00%

发文量

期刊介绍： Business Perspectives and Research (BPR) aims to publish conceptual, empirical and applied research. The empirical research published in BPR focuses on testing, extending and building management theory. The goal is to expand and enhance the understanding of business and management through empirical investigation and theoretical analysis. BPR is also a platform for insightful and theoretically strong conceptual and review papers which would contribute to the body of knowledge. BPR seeks to advance the understanding of for-profit and not-for-profit organizations through empirical and conceptual work. It also publishes critical review of newly released books under Book Review section. The aim is to popularize and encourage discussion on ideas expressed in newly released books connected to management and allied disciplines. BPR also periodically publishes management cases grounded in theory, and communications in the form of research notes or comments from researchers and practitioners on published papers for critiquing and/or extending thinking on the area under consideration. The overarching aim of Business Perspectives and Research is to encourage original/innovative thinking through a scientific approach.