Intuition, expertise and emotion in the decision making of investment bank traders

The role of intuition may be especially dominant in organizations embedded in turbulent environments (Khatri & Ng, 2000). Dane and Pratt (2007) argue that intuition will be more likely to function as an effective component of decision making in performance domains that require significant experience and complex domain-relevant schema, a description that fits the world of financial trading. Traders are also frequently engaged in decision making that is characterized by time pressure, high risk, complexity and imperfect information. In a previous study (Fenton-O’Creevy et al., 2011), the second author found that many high performing traders deploy a reflective and critical approach to the use and development of intuition, which they understand as well-founded in prior experience. In this chapter we draw on our prior research to discuss the role of intuition in the work of professional traders. We bring together the results of our research on emotion regulation of investment bank traders (Fenton-O’Creevy et al., 2005, 2011, 2012; Vohra & Fenton-O’Creevy, 2011) with research on expertise and affect-based intuition (Baylor, 2001; Dane & Pratt, 2007; Simon, 1987; Sinclair & Ashkanasy, 2005; Weiss & Cropanzano, 1996) to argue that since more effective emotion regulation is associated with greater experience and more effective use of emotions in decision making (Fenton-O’Creevy et al., 2012) and emotions underpin the use of intuition (Lieberman, 2000; Sinclair & Ashkanasy, 2005), then effective emotion regulation will be essential in the deployment of expert intuition

Investor regret, share performance and the role of corporate agreeableness.

Drawing on regret and reputation literatures, the authors demonstrate how positive corporate associations can mitigate the effects of share performance on investor regret. Three studies are presented, the first involved the observation of six investment club meetings. The second is a survey of investors exploring some of the findings of the first study, specifically the relationship between investor regret and corporate associations. The final study uses an experimental design to test whether corporate social responsibility (CSR) messaging can influence regret in the context of disappointing share performance by influencing corporate agreeableness. The main findings are that a range of corporate associations are important to investors, more so than actual share performance, in their decision-making. Specifically, the more agreeable (e.g. trustworthy, supportive) the company is perceived to be, the lower will be any regret felt over share performance. Finally, CSR information was found to affect regret via an influence on agreeableness

Emotion regulation and trader expertise: heart rate variability on the trading floor

We describe a psychophysiological study of the emotion regulation of investment bank traders. Building on work on the role of emotions in financial decision-making, we examine the relationship between market conditions, trader experience and emotion regulation whilst trading, as indexed by high frequency heart rate variability (HF HRV). We find a significant inverse relationship between HF HRV and market volatility and a positive relationship between HF HRV and trader experience. We argue that this suggests that emotion regulation may be an important facet of trader expertise and that learning effects demonstrated in financial markets may include improved emotion regulation as an important component of that learning. Our results also suggest the value of investigating the role of effective emotion regulation in a broader range of financial decision-making contexts. Keywords: Emotion Regulation, Financial Decision-Making, Market Volatility, Trading, Heart Rate Variabilit

Reducing the environmental impact of surgery on a global scale: systematic review and co-prioritization with healthcare workers in 132 countries

Abstract Background Healthcare cannot achieve net-zero carbon without addressing operating theatres. The aim of this study was to prioritize feasible interventions to reduce the environmental impact of operating theatres. Methods This study adopted a four-phase Delphi consensus co-prioritization methodology. In phase 1, a systematic review of published interventions and global consultation of perioperative healthcare professionals were used to longlist interventions. In phase 2, iterative thematic analysis consolidated comparable interventions into a shortlist. In phase 3, the shortlist was co-prioritized based on patient and clinician views on acceptability, feasibility, and safety. In phase 4, ranked lists of interventions were presented by their relevance to high-income countries and low–middle-income countries. Results In phase 1, 43 interventions were identified, which had low uptake in practice according to 3042 professionals globally. In phase 2, a shortlist of 15 intervention domains was generated. In phase 3, interventions were deemed acceptable for more than 90 per cent of patients except for reducing general anaesthesia (84 per cent) and re-sterilization of ‘single-use’ consumables (86 per cent). In phase 4, the top three shortlisted interventions for high-income countries were: introducing recycling; reducing use of anaesthetic gases; and appropriate clinical waste processing. In phase 4, the top three shortlisted interventions for low–middle-income countries were: introducing reusable surgical devices; reducing use of consumables; and reducing the use of general anaesthesia. Conclusion This is a step toward environmentally sustainable operating environments with actionable interventions applicable to both high– and low–middle–income countries

Managing the heart of finance: domain specific emotion regulation in the work of financial traders

In the last decade considerable progress has been made in understanding the role of emotion regulation strategies. However, the primary focus has been on generic strategies. We argue that emotion regulation strategies in the workplace will often be highly domain specific and embedded in domain-specific expertise. In this paper we explore the role of domain specific emotion regulation strategies within the work of financial traders. We report on a qualitative study of the emotion regulation practices of 17 traders and trader managers in two investment banks. We evidence that traders and their managers are significantly concerned with emotions and their regulation and find evidence for both generic and domain specific approaches to emotion regulation

Investor decision making

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