Behavioral Biases Of Finance Professionals: Turkish Evidence
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Date
2016
Authors
Kiymaz, Halil
Öztürkkal, Belma
Akkemik, K. Ali
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier Science Bv
Abstract
This study extends the existing literature on the determinants of behavioral biases of Turkish finance sector professionals. It examines the impact of various personal and objective attributes of finance sector professionals on their risk choices derived from their portfolio allocation and personal wealth data. Utilizing survey data from 206 professionals we find that these professionals take higher risk in the form of investment in equities when investing in home country firms (geographic bias) and investing in firms headquartered in their home towns (home bias). Those relying on their own predictions when making investment decisions and those with emotional biases invest less in equities. Findings further show that younger professionals professional with less education with lower risk aversion and with single broker accounts are more likely to invest in equities. We also find that those with higher expected returns invest more in equities showing overconfidence. Subsample analysis results for finance professionals suggest that portfolio managers and brokerage company professionals display differing risk taking behavior. (C) 2016 Elsevier B.V. All rights reserved.
Description
Keywords
Behavioral Biases, Risk, Equity, Financial Literacy, Investor
Turkish CoHE Thesis Center URL
Citation
11
WoS Q
N/A
Scopus Q
Q1
Source
Volume
12
Issue
Start Page
101
End Page
111