Fundamental-Equity Investors Decision-Context Framework and Employment Taxonomy

Abstract

We present a theory that explains the decision-context framework and employment taxonomy of fundamental-equity investors. We developed this theory using the classical grounded theory methodology. Segment data are important to fundamental-equity investors’ decision-making approach. These investors use segment data to improve their understandings of firms. Our decision-context framework conceptualizes their six decision contexts. The taxonomy conceptualizes their employment classifications on five dimensions. Our theory suggests researchers should investigate each decision context and the one decision type that has not been studied. Our taxonomy could be used to specify survey populations or
sample frames, facilitate inter-study comparisons, and reduce surveyors’ costs.