A Behavioral Perspective for Cognitive Biases between Financial Experts and Investors: Empirical Evidences of Taiwan Market | Zendy

Hung-Ta Lee | Zendy; Chuan-Yuan Lin | Zendy

Open Access

A Behavioral Perspective for Cognitive Biases between Financial Experts and Investors: Empirical Evidences of Taiwan Market

Author(s) -

Hung-Ta Lee,

Chuan-Yuan Lin

Publication year - 2006

Publication title -

contemporary management research

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.192

H-Index - 2

ISSN - 1813-5498

DOI - 10.7903/cmr.8

Subject(s) - behavioral economics , capital market , perspective (graphical) , financial market , cognition , economics , benchmark (surveying) , empirical research , financial economics , finance , cognitive bias , disposition effect , business , actuarial science , psychology , computer science , artificial intelligence , philosophy , epistemology , neuroscience , paleontology , context (archaeology) , geodesy , biology , geography

This empirical study tests the hypothesis of whether the good stocks are the socalled good corporations or not. Based upon the concepts of behavioral finance, the capital markets are highly complex and uncertain. Suppose the investors focus on the fixed rules and intuitions to make decisions, cognitive biases exist. Since financial experts have lower cognitive biases than investors because of their financial and professional capabilities, the good stocks they selected should perform better in capital markets. Actually, they do not, which indicating the criteria to select good corporations and good stocks are different.

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