Joost M.E. Pennings

Publications (301) View all

• Article: Individual Investor Perceptions and Behavior During the Financial Crisis

  A.O.I. Hoffmann, T. Post, Joost M.E. Pennings
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  ABSTRACT: Combining monthly survey data with matching trading records, we examine how individual investor perceptions change and drive trading and risk-taking behavior during the 2008–2009 financial crisis. We find that investor perceptions fluctuate significantly during the crisis, with risk tolerance and risk perceptions being less volatile than return expectations. During the worst months of the crisis, investors’ return expectations and risk tolerance decrease, while their risk perceptions increase. Towards the end of the crisis, investor perceptions recover. We document substantial swings in trading and risk-taking behavior that are driven by changes in investor perceptions. Overall, individual investors continue to trade actively and do not de-risk their investment portfolios during the crisis.
  Journal of Banking & Finance 01/2013; 37:60-74. · 2.60 Impact Factor
• Source

  Available from: Nikos Kalogeras

  Article: Which Co-op Ownership Model Performs Better? A Financial-Decision Aid Approach

  N. Kalogeras, Joost M.E. Pennings, T. Benos, M. Doumpos
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  ABSTRACT: In this article the financial/ownership structures of agribusiness cooperatives are analyzed to examine whether new cooperative models perform better than the more traditional ones. The assessment procedure introduces a new financial decision-aid approach, which is based on data-analysis techniques in combination with a preference ranking organization method of enrichment evaluations (PROMETHEE II). The application of this multicriteria decision-aid approach allows the rank ordering of cooperatives based on the most prominent financial ratios. The financial ratios were selected using principal component analysis. This analytical procedure reduces the dimensionality of large numbers of interrelated financial performance measures. We assess the financial success of Dutch agribusiness cooperatives for the period 1999–2010. Results show that there is no clear-cut evidence that cooperative models used to attract extra members’ investments and/or outside equity perform better than the more traditional models. This suggests that ownership structure of cooperatives is not always a decisive factor for their financial success.
  Agribusiness 01/2013; 29(1):80-95. · 0.67 Impact Factor
• Article: Managing Market-Based Assets: Customer Satisfaction as a Buffer Against Sentimental Stock-Price Movements

  R.P. Merrin, A.O.I. Hoffmann, Joost M.E. Pennings
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  ABSTRACT: Previous research has shown that customer satisfaction is a market-based asset that can contribute to a firm’s value by increasing its stock-market returns, while simultaneously reducing the riskiness of these returns. This study contributes to the growing literature on the marketing–finance interface by examining the relationship between customer satisfaction and a type of risk that has not been previously studied in the marketing literature: the vulnerability of a firm’s stock price to the stock-market corrections that typically follow periods of high investor sentiment. The results show that customer satisfaction can function as a buffer against the risk of such sentimental stock-price movements and reduces their negative impact on a firm’s market value. In particular, we find that firms with higher (lower) levels of customer satisfaction exhibit smaller (greater) price corrections and higher returns after periods of high investor sentiment.
  Marketing Letters 01/2013; 24(1):13-27. · 0.63 Impact Factor
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  Available from: Joost M.E. Pennings

  Article: Attribute-Value Functions as Global Interpretations of Attribute Importance

  Koert Van Ittersum, Joost M E Pennings
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  ABSTRACT: a b s t r a c t In order to better understand decision maker's perceptions of the importance of attributes, Goldstein (1990) differentiates between global and local interpretations of attribute importance. While the appre-ciation for the distinction is growing, research on the relationship between measures of global and local importance is inconclusive. We believe that these inconclusive findings are caused by operationalizing global attribute importance with single-point measures that implicitly assume that the global interpre-tation of attribute importance linearly depends on the relevant range of context-specific attribute levels. To address this, we propose to operationalize the global interpretation of attribute importance by esti-mating decision makers' attribute-value functions. Two empirical studies demonstrate that the shape of attribute-value functions changes from concave to convex with global attribute importance. Further-more, the steepness of these functions increases with global attribute importance while the diminishing sensitivity decreases. Finally, it is demonstrated that the inconclusive findings about the relationship between common, single-point measures of global and local attribute importance is driven by non-linear-ities in decision makers' attribute-value functions. The results suggest great promise for future research on using decision makers' attribute-value functions for measuring the importance of attributes. Published by Elsevier Inc.
  Organizational Behavior and Human Decision Processes 09/2012; 119(1):89-102. · 3.13 Impact Factor
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  Available from: Joost M.E. Pennings

  Article: Crop Production Contracts and Marketing Strategies: What Drives Their Use?

  Jason R V Franken, Joost M E Pennings, Philip Garcia
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  ABSTRACT: Numerous crop marketing and risk management tools are available. Research relating producers' risk attitudes to their use of these tools has produced mixed results, and most studies focus on individual tools, neglecting potential complementarities in information they provide. Little is known about the proportion in which individual tools are used, e.g., the percentage of the crop that is forward sold as opposed to hedged. This study identifies factors, including risk attitude, that impact the proportion of corn and soybean producers' sales through spot markets, futures, and options, as well as forward and production contracts, and investigates contract complementarity and substitutability using survey and accounting data, and causal modeling. [Econ Lit classification: Q130]. C 2012 Wiley Periodicals, Inc.
  Agribusiness: An International Journal. 01/2012;