Investigation of the fractal footprint in selected EURIBOR panel banks

Financial Reynolds number works as a proxy for volatility in stock markets. This piece of work helps to identify the predictability and herd behavior embedded in the financial Reynolds number (time series) series for both CNX Nifty Regular and CNX Nifty High Frequency Trading domains. Hurst exponent and fractal dimension have been used to carry out this work. Results confirm conclusive evidence of predictability and herd behavior for both the indices. However, it has been observed that CNX Nifty High Frequency Trading domain (represented by its corresponding financial Reynolds number) is more predictable and has traces of significant herd behavior. The pattern of the predictability has been found to follow a quadratic equation.

COVID-19 has caused not only unprecedented health crises but also economic crises among individuals across the world. White-collar (salaried-class) employees with a fixed salary face financial insecurity due to job loss, pay cuts and uncertainty in retaining a job. This study examines the financial behavior of Indian white-collar salaried-class investors to their cognitive biases. In addition, the mediating effect of financial self-efficacy on cognitive biases and financial behavior is examined. Respondents were given structured questionnaires (google forms) through emails and WhatsApp for data collection. SPSS and R-PLS are used to analyze the data. Conservatism (r = –.603, p < 0.05) and herding bias (r = –.703, p < 0.05) have a significant negative correlation with financial behavior. Financial self-efficacy has a significant positive correlation (r =.621. p < 0.050). Conservatism and herding predicted 60.5% and 62.2% of the variance, respectively. The direct and indirect paths between conservatism bias, financial self-efficacy, and financial behavior are significant. The paths between herding, financial self-efficacy and financial behavior are also significant.

Acknowledgement
The authors express their sincere gratitude to Dr Suresha B (Associate Professor, School of business and management, CHRIST (Deemed to be university), Bangalore, India ) for encouraging and motivating them to accomplish this research task. The authors also extend their sincere thanks to Prof. Krishna T.A. (Assistant Professor, School of business and management, CHRIST (Deemed to be university), Bangalore, India) and Dr Sridevi Nair (Assistant Professor, School of business and management, CHRIST (Deemed to be university), Bangalore, India) for their support throughout this empirical investigation.

In the present world featuring rapidly changing conditions of external environment, it is crucial for companies to be adaptive and resistant to any types of fluctuations. When creating scenarios of business portfolio development or medium-/long-term planning of firm activities, it is important to evaluate an efficiency of such scenario implementation. Depending on the degree of openness of the system-firm, one can talk about the different degrees of its adaptability and ability to develop. The degree of freedom of the system is determined by its entropy. The number of degrees of freedom determines the system’s ability to develop, evolve (in general).
Thus, it is important to investigate the influence the entropy and information to a firm – a system and create some appropriate instruments for estimation scenarios of development.
The author studies the adaptive capabilities of a firm – a system to the external environment conditions and draws a conclusion that a reasonable combination of order and chaos is required for a firm’s evolutionary development, or one should search for optimal balance between an entropy, as a degree of uncertainty (chaos), and a system awareness, as an indicator of its arrangement.
The author has proposed an index of strategic adaptability for evaluation of business portfolio development scenarios. The use of system’s information and entropy as evaluation criteria’s for the feasibility of scenarios is proposed.
The offered approach and instruments for evaluation of the firm’s asset portfolio development scenarios do not require complex calculations and are convenient enough to be used by any firm, concerned about its adaptability to the external environment conditions in practice.