Professionals’ endorsement of behavioral finance: does it impact their perception of markets and themselves?

This paper provides evidence on the hypothesis that many behavioral finance patterns are so deeply rooted in human behavior that they are difficult to overcome by learning. We test this on a target group which has undoubtedly very strong incentives to learn efficient behavior, i.e. fund managers. We split this group into endorsers and non-endorsers of behavioral finance. Endorsers do, indeed, view markets differently as they regard stronger influences from behavioral biases. However, when it comes to the perception of one's own behavior the endorsement of behavioral finance becomes almost meaningless, even though endorsers otherwise do adapt behavior towards their conviction

Does training on behavioural finance influence fund managers' perception and behaviour?

This article provides survey evidence on the influence of training on Behavioural Finance (BF) on professional fund managers' perception and investment behaviour. In particular, it examines whether 'trained' fund managers differ from the 'untrained' ones in their perception of markets and themselves, as well as in their choice of information sources and investment strategies. Additionally, the influence of integration of BF approaches into investment processes is also considered. The results reveal that training on BF basically intensifies the perception of biases in the behaviour of others, i.e. the reflection effect and the home bias. Training also reduces the affinity to conformity, leading to less reliance on colleagues and other market participants as information sources. However, pure training is insufficient to significantly affect fund managers' investment behaviour, but BF approaches need to be integrated into investment processes.

Does training on behavioral finance influence fund managers' perception and behavior?

This paper provides survey evidence on the influence of training on behavioral finance on professional fund managers' perception and investment behavior. In particular, it examines whether "trained" fund managers differ from the "untrained" ones in their perception of markets and themselves as well as in their choice of information sources and investment strategies. Additionally, the influence of integration of behavioral finance approaches into investment processes is also considered. The results reveal that training on behavioral finance basically intensifies the perception of biases in the behavior of others, i.e. the reflection effect and the home bias. Training also reduces the affinity to conformity, leading to less reliance on colleagues and other market participants as information sources. However, pure training is insufficient to significantly affect fund managers' investment behavior, but behavioral finance approaches need to be integrated into investment processes.behavioral finance, fund managers, biases, training, integration

Professionals' endorsement of behavioral finance: Does it impact their perception of markets and themselves?

This paper provides evidence on the hypothesis that many behavioral finance patterns are so deeply rooted in human behavior that they are difficult to overcome by learning. We test this on a target group which has undoubtedly very strong incentives to learn efficient behavior, i.e. fund managers. We split this group into endorsers and non-endorsers of behavioral finance. Endorsers do, indeed, view markets differently as they regard stronger influences from behavioral biases. However, when it comes to the perception of one's own behavior the endorsement of behavioral finance becomes almost meaningless, even though endorsers otherwise do adapt behavior towards their conviction.Behavioral finance Fund managers Biases