Reports involving risk-taking affects financial decision making (4/28/2009)

Description

An innovative study carried out at the University of Haifa examined factors influencing decisions by investment advisors and accountants, finding that irrelevant substance, such as newspaper articles dealing with unrelated risky decisions, affects financial decision making. The results of the study were presented at the APESA 2009 international conference on behavioral economics at the University of Haifa.

The study has shown that a group of investment advisors and accountants who have read a story on successful risk-taking decisions rated a traded stock as more valuable for investment, in comparison to a group who read a story on successful results of risk avoidance. "Priming, the underlying psychological mechanism, is well known in psychology, but to date was not analyzed with regard to financial decision making the way we did," said Dr. Doron Kliger who carried out the study along with his student Dalia Gilad.

Original URL

http://www.cowboyeconomics.com/research/Reports_involving_risk-taking_affects_financial_decision_making.asp#

http://www.cowboyeconomics.com/research/Reports_involving_risk-taking_affects_financial_decision_making.asp#