Intuitive Thinking, Behavioral Biases and Performance of Professional Investors in Tehran Stock Exchange

Objective: This study aims to explain the relationship between cognitive abilities and faith in intuition with behavioral biases and also to explain the relationship between behavioral biases and performance of professional investors in the Tehran Stock Exchange. We compare two different measures of...

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Autores principales:	Mohammad Osoolian, Mohammad Hasannejad, Seyed Jalal Sadeghi Sharif, Yaser Hamzenejadi
Formato:	article
Lenguaje:	FA
Publicado:	University of Tehran 2021
Materias:	intuitive thinking cognitive abilities faith in intuition anchoring bias conjunction fallacy Finance HG1-9999
Acceso en línea:	https://doaj.org/article/22cc06c4d01c4ffba59808f8aee1fe18
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spelling	oai:doaj.org-article:22cc06c4d01c4ffba59808f8aee1fe182021-11-14T06:00:48ZIntuitive Thinking, Behavioral Biases and Performance of Professional Investors in Tehran Stock Exchange1024-81532423-537710.22059/frj.2020.304665.1007029https://doaj.org/article/22cc06c4d01c4ffba59808f8aee1fe182021-05-01T00:00:00Zhttps://jfr.ut.ac.ir/article_81938_8c95b07b9eeda7b14be574162954e620.pdfhttps://doaj.org/toc/1024-8153https://doaj.org/toc/2423-5377Objective: This study aims to explain the relationship between cognitive abilities and faith in intuition with behavioral biases and also to explain the relationship between behavioral biases and performance of professional investors in the Tehran Stock Exchange. We compare two different measures of impulsive or intuitive behavior, examining their effect on anchoring bias and conjunction fallacy, and finally examining the effect of behavioral biases on investors' performance. Methods: The sample consists of 311 professional investors in the capital market whose data were collected via questionnaires. Chi-squared test, Mann WhitneyU test, ordinary least squares, and probit regression were used to analyze the data. Results: The results show that faith in intuition has a positive and significant effect on anchoring bias and conjunction fallacy. While cognitive ability has a negative and significant effect on the conjunction fallacy. The results also show that faith in intuition has a negative and significant effect on return. The results of regression analysis also show that gender reinforces the negative effect of cognitive ability and the positive effect of faith in intuition on the conjunction fallacy. Conclusion: The results show that faith in intuition is more related to behavioral biases and performance than cognitive abilities, and is more informative overall.Mohammad OsoolianMohammad HasannejadSeyed Jalal Sadeghi SharifYaser HamzenejadiUniversity of Tehranarticleintuitive thinkingcognitive abilitiesfaith in intuitionanchoring biasconjunction fallacyFinanceHG1-9999FAتحقیقات مالی, Vol 23, Iss 1, Pp 17-39 (2021)
institution	DOAJ
collection	DOAJ
language	FA
topic	intuitive thinking cognitive abilities faith in intuition anchoring bias conjunction fallacy Finance HG1-9999
spellingShingle	intuitive thinking cognitive abilities faith in intuition anchoring bias conjunction fallacy Finance HG1-9999 Mohammad Osoolian Mohammad Hasannejad Seyed Jalal Sadeghi Sharif Yaser Hamzenejadi Intuitive Thinking, Behavioral Biases and Performance of Professional Investors in Tehran Stock Exchange
description	Objective: This study aims to explain the relationship between cognitive abilities and faith in intuition with behavioral biases and also to explain the relationship between behavioral biases and performance of professional investors in the Tehran Stock Exchange. We compare two different measures of impulsive or intuitive behavior, examining their effect on anchoring bias and conjunction fallacy, and finally examining the effect of behavioral biases on investors' performance. Methods: The sample consists of 311 professional investors in the capital market whose data were collected via questionnaires. Chi-squared test, Mann WhitneyU test, ordinary least squares, and probit regression were used to analyze the data. Results: The results show that faith in intuition has a positive and significant effect on anchoring bias and conjunction fallacy. While cognitive ability has a negative and significant effect on the conjunction fallacy. The results also show that faith in intuition has a negative and significant effect on return. The results of regression analysis also show that gender reinforces the negative effect of cognitive ability and the positive effect of faith in intuition on the conjunction fallacy. Conclusion: The results show that faith in intuition is more related to behavioral biases and performance than cognitive abilities, and is more informative overall.
format	article
author	Mohammad Osoolian Mohammad Hasannejad Seyed Jalal Sadeghi Sharif Yaser Hamzenejadi
author_facet	Mohammad Osoolian Mohammad Hasannejad Seyed Jalal Sadeghi Sharif Yaser Hamzenejadi
author_sort	Mohammad Osoolian
title	Intuitive Thinking, Behavioral Biases and Performance of Professional Investors in Tehran Stock Exchange
title_short	Intuitive Thinking, Behavioral Biases and Performance of Professional Investors in Tehran Stock Exchange
title_full	Intuitive Thinking, Behavioral Biases and Performance of Professional Investors in Tehran Stock Exchange
title_fullStr	Intuitive Thinking, Behavioral Biases and Performance of Professional Investors in Tehran Stock Exchange
title_full_unstemmed	Intuitive Thinking, Behavioral Biases and Performance of Professional Investors in Tehran Stock Exchange
title_sort	intuitive thinking, behavioral biases and performance of professional investors in tehran stock exchange
publisher	University of Tehran
publishDate	2021
url	https://doaj.org/article/22cc06c4d01c4ffba59808f8aee1fe18
work_keys_str_mv	AT mohammadosoolian intuitivethinkingbehavioralbiasesandperformanceofprofessionalinvestorsintehranstockexchange AT mohammadhasannejad intuitivethinkingbehavioralbiasesandperformanceofprofessionalinvestorsintehranstockexchange AT seyedjalalsadeghisharif intuitivethinkingbehavioralbiasesandperformanceofprofessionalinvestorsintehranstockexchange AT yaserhamzenejadi intuitivethinkingbehavioralbiasesandperformanceofprofessionalinvestorsintehranstockexchange
_version_	1718429884657696768

Intuitive Thinking, Behavioral Biases and Performance of Professional Investors in Tehran Stock Exchange

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