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

Listed author(s):
  • 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 to their endorsement.

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File URL: http://diskussionspapiere.wiwi.uni-hannover.de/pdf_bib/dp-392.pdf
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Paper provided by Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät in its series Hannover Economic Papers (HEP) with number dp-392.

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Length: 25 pages
Date of creation: Mar 2008
Handle: RePEc:han:dpaper:dp-392
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Web page: http://www.wiwi.uni-hannover.de

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