Reactions of dissatisfied investors: exit, voice or loyalty

Tasci M., ÖZDEMİR Ö.

JOURNAL OF FINANCIAL SERVICES MARKETING, vol.22, no.3, pp.109-118, 2017 (ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 22 Issue: 3
  • Publication Date: 2017
  • Doi Number: 10.1057/s41264-017-0027-4
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus
  • Page Numbers: pp.109-118
  • Keywords: Individual investor, Dissatisfaction, Exit, Voice, Loyalty
  • Middle East Technical University Affiliated: Yes


This study examines the reactions of individual investors that have invested in the stocks of companies that have been eventually delisted from the stock market due to bankruptcy and/or bad governance. Data to determine reaction styles of investors are collected through a wellestablished questionnaire to a sample of 67 investors of Borsa Istanbul. Multinomial logistic regression analysis concludes that investors' perceived knowledge about the stock market is the most important factor affecting how investors react. More specifically, the higher the knowledge perceived, the higher the tendency of the investors to keep investing (loyalty) as the reaction. Further, more experienced investors are found to complain/ask for their rights (voice) more.