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

Marina Nikiforow ()

Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Universität Hannover from Universität Hannover, Wirtschaftswissenschaftliche Fakultät

Abstract: 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.

Keywords: behavioral finance; fund managers; biases; training; integration (search for similar items in EconPapers)
JEL-codes: G10 D83 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-hrm and nep-neu
Date: 2009-06
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Persistent link: http://EconPapers.repec.org/RePEc:han:dpaper:dp-419

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