SavedAdd your journal

Journals / Finans Ekonomi ve Sosyal Araştırmalar Dergisi / 2023 / Cilt: 8 Sayı: 3

THE INTERACTION BETWEEN COGNITIVE BIASES AND THE CULTURAL DIMENSIONS OF THE COUNTRY IN INDIVIDUAL INVESTMENT DECISIONS

BİREYSEL YATIRIM KARARLARINDA BİLİŞSEL ÖNYARGILAR İLE ÜLKENİN KÜLTÜREL BOYUTLARI ARASINDAKİ ETKİLEŞİM

Nurgün KOMŞUOĞLU YILMAZ
Pages
828–839
Publication Date
2023-10-09
DOI
—
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

In this study, the relationship between cultural dimensions and cognitive biases was examined in terms of individual financial investments in Türkiye.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:There are many physical, psychological, and social factors that have an impact on the decision-making process.
📊
Key Findings & Data:Culture has a significant impact on the way of life and thinking of people living in a country.
💡
Conclusion & Impact:In this study, the relationship between cultural dimensions and cognitive biases was examined in terms of individual financial investments in Türkiye.
🔬Design:Research Article
📍Scope:Comprehensive Sample
⚙️Variables:Bilişsel Önyargı · Bireysel Yatırım Kararları · Kültür

Abstract

There are many physical, psychological, and social factors that have an impact on the decision-making process. Subjective cognitive factors that affect this process are called cognitive biases. Cognitive biases can impede people from making the right decisions by affecting their objective behavior in decision-making. This situation comes to the fore, especially in financial investment decisions and investors move away from making optimal decisions due to various cognitive biases. Culture has a significant impact on the way of life and thinking of people living in a country. The cultural characteristics of the country may have an impact on the prominence of different cognitive biases. In this study, the relationship between cultural dimensions and cognitive biases was examined in terms of individual financial investments in Türkiye.

Özet

Karar verme sürecini etkileyen birçok fiziksel, psikolojik ve sosyal faktör vardır. Bu süreç üzerinde etkili olan sübjektif bilişsel faktörlere bilişsel önyargılar denir. Bilişsel önyargılar, insanların karar vermedeki nesnel davranışlarını etkileyerek doğru kararlar vermelerini engelleyebilmektedir. Bu durum özellikle finansal yatırım kararlarında ön plana çıkmakta ve çeşitli bilişsel önyargılar nedeniyle yatırımcılar optimal karar vermekten uzaklaşmaktadır. Kültür, bir ülkede yaşayan insanların yaşam biçimleri ve düşünceleri üzerinde önemli bir etkiye sahiptir. Ülkenin kültürel özellikleri farklı bilişsel önyargıların öne çıkmasında etkili olabilir. Bu çalışmada kültürün boyutları ile bilişsel önyargılar arasındaki ilişki Türkiye'deki bireysel finansal yatırımlar açısından incelenmiştir.

🔖

Cite This Article

YILMAZ, N. K. (2023). THE INTERACTION BETWEEN COGNITIVE BIASES AND THE CULTURAL DIMENSIONS OF THE COUNTRY IN INDIVIDUAL INVESTMENT DECISIONS. Finans Ekonomi ve Sosyal Araştırmalar Dergisi, Cilt: 8 Sayı: 3, 828–839. https://ajindex.com/articles/968956

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (14)

  1. ALNORI, F., & AHMAD, M. U. (2022). Herd Mentality Amongst Equity Investors During COVID-19: Evidences from Saudi Arabia. International Journal of Economics and Financial Issues, 12(4), 40–46. https://doi.org/10.32479/ijefi.13192
  2. AMERICAN PSYCHOLOGICAL ASSOCIATION (2023)
  3. APA Dictionary of Psychology, Overconfidence, https://dictionary.apa.org/overconfidence, Accessed at: 03.20.2023.
  4. ANDERSEN, J. V. (2010). Detecting anchoring in financial markets. Journal of Behavioral Finance, 11(2), 129-133.
  5. ARORA, M., & KUMARI, S. (2015). Risk taking in financial decisions as a function of age, gender: mediating role of loss aversion and regret. International Journal of Applied Psychology, 5(4), 83-89. BIKHCHANDANI S. & SHARMA S. (2000) Herd Behavior in Financial Markets: A review, IMF Working Paper, WP/00/48. BILEK, J., Nedoma, J., & Jirásek, M. (2018). Representativeness heuristics: A literature review of its impacts on the quality of decision-making. Scientific papers of the University of Pardubice. Series D, Faculty of Economics and Administration. 43/2018.
  6. BOUSSAIDI, R. (2013). Representativeness heuristic, investor sentiment and overreaction to accounting earnings: The case of the Tunisian stock market. Procedia-Social and Behavioral Sciences, 81, 9-21.
  7. CAFFERATA, A., & TRAMONTANA, F. (2019). A financial market model with confirmation bias. Structural Change and Economic Dynamics, 51, 252-259.
  8. CBRT EVDS Data Central (2023) https://evds2.tcmb.gov.tr/index.php?/evds/serieMarket/collapse_4/ 5899/DataGroup/turkish/bie_kmmbgmv/ Accessed at: 09.28.2023.
  9. CEN, L., HILARY, G., & WEI, K. J. (2013). The role of anchoring bias in the equity market: Evidence from analysts’ earnings forecasts and stock returns. Journal of Financial and Quantitative Analysis, 48(1), 47-76.
  10. CHAKRABORTY, A. (2021). Present bias. Econometrica, 89(4), 1921-1961.
  11. CHIN, P. N., CH’NG, K. S., & ISA, S. M. (2018). The effect of self-serving bias on trading decisions and its solution mechanisms: An experimental study. Global Business and Management Research: An International Journal, 10(1), 67-81.
  12. CHONG, F. N. (2011). Representative heuristics and the aftermarket dynamic of the new listings in Malaysia. Labuan Bulletin of International Business and Finance (LBIBF), 9, 1-11.
  13. DANG, H. V., & LIN, M. (2016). Herd mentality in the stock market: On the role of idiosyncratic participants with heterogeneous information. International Review of Financial Analysis, 48, 247-260.
  14. DUONG, C., PESCETTO, G., & SANTAMARIA,