Investigating factors predicting derivative mishandling : a sociological perspective

Abstract

The purpose of this paper is to determine whether experience with derivatives, level of education, anomic behaviour, introversion, environmental influence and competitiveness can predict derivative mishandling. A study was conducted amongst 268 users of derivatives. Respondents were asked to indicate their level of education, and the experience (in years) using derivatives. Additionally, they were requested to rate their level of agreement with each of 12 statements on a four-point scale ranging from strongly disagree (coded as 1) to strongly agree (coded as 4). Derivative mishandling increases with lack of experience, higher levels of anomic behaviour, competitiveness and environmental influence. Education and introversion did not emerge as a significant predictor of derivative mishandling. This study contributes to the literature by highlighting the importance of understanding whether derivative users show signs of Organization Anomie, since this can help in predicting mishandling.