Fundamental-Equity Investors’ Decision-Context Framework and Taxonomy

• In Event: Accounting, Behavior and Organizations I

Abstract

We present a theory comprising an investors’ decision-context framework and taxonomy. We developed these using the grounded theory methodology. Concerning the framework we assert decision usefulness is of particular interest to fundamental-equity investors. As segment data are important to their decision model. These investors make equity investment decisions and use segment data to improve their understandings of firms. Six decision contexts represent their decisions; they make one of three decision types. Their common decision model gives them a common set of data values. These values increase the likelihood that their decision contexts align. Concerning the taxonomy, we identified the relations among the industries and sectors that fundamental-equity investors follow and their decision and decision-maker types and occupational title classifications. Our theory could be used by investor researchers to specify survey populations or sample frames.

Authors

• Cynthia Tollerson, Morgan State University

• Wynne W. Chin, University of Houston

• George O Gamble, University of Houston-Houston

• Kelly Carter, Morgan State University