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Professionals' endorsement of behavioral finance: Does it impact their perception of markets and themselves?

  • Menkhoff, Lukas
  • Nikiforow, Marina

This paper provides evidence on the hypothesis that many behavioral finance patterns are so deeply rooted in human behavior that they are difficult to overcome by learning. We test this on a target group which has undoubtedly very strong incentives to learn efficient behavior, i.e. fund managers. We split this group into endorsers and non-endorsers of behavioral finance. Endorsers do, indeed, view markets differently as they regard stronger influences from behavioral biases. However, when it comes to the perception of one's own behavior the endorsement of behavioral finance becomes almost meaningless, even though endorsers otherwise do adapt behavior towards their conviction.

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File URL: http://www.sciencedirect.com/science/article/pii/S0167-2681(09)00111-5
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Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 71 (2009)
Issue (Month): 2 (August)
Pages: 318-329

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Handle: RePEc:eee:jeborg:v:71:y:2009:i:2:p:318-329
Contact details of provider: Web page: http://www.elsevier.com/locate/jebo

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