Cognitive Limitation And Investment Performance

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Cognitive Limitation and Investment Performance

Author : Weiyu Kuo
Publisher :
ISBN 13 :
Total Pages : 87 pages
Book Rating : 4.:/5 (13 download)

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Book Synopsis Cognitive Limitation and Investment Performance by : Weiyu Kuo

Download or read book Cognitive Limitation and Investment Performance written by Weiyu Kuo and published by . This book was released on 2014 with total page 87 pages. Available in PDF, EPUB and Kindle. Book excerpt: We hypothesize that cognitive limitation may be manifested in a disproportionately large volume of limit orders submitted at round-number prices if investors use these numbers as cognitive shortcuts. Using detailed limit order data in the Taiwan Futures Exchange, we find that investors with lower cognitive abilities, defined as higher limit order submission ratios at round numbers, suffer greater losses in their round-numbered and non-round-numbered limit orders, market orders, and round-trip trades. The positive correlation between cognitive ability and investment performance is monotonic and robust across futures and options markets. In addition, past trading experience helps to mitigate the cognitive limitation.

Cognitive Limitation, Herding Behavior, and Investment Performance

Author : Jing Zhao
Publisher : Open Dissertation Press
ISBN 13 : 9781361362426
Total Pages : pages
Book Rating : 4.3/5 (624 download)

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Book Synopsis Cognitive Limitation, Herding Behavior, and Investment Performance by : Jing Zhao

Download or read book Cognitive Limitation, Herding Behavior, and Investment Performance written by Jing Zhao and published by Open Dissertation Press. This book was released on 2017-01-27 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation, "Cognitive Limitation, Herding Behavior, and Investment Performance" by Jing, Zhao, 趙靜, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: This dissertation consists of two empirical essays about the cognitive limitation, herding behavior, and their association with investment performance. The essays utilize the detailed quotes and trades data in the Taiwan Futures Exchange with investor account identity, to study the cognitive limitation and herding behavior of the investors, and the association between the cognitive limitation, herding behavior, and the investment performance. In the first essay, I hypothesize that cognitive limitation maybe manifested in a disproportionately large volume of limit orders submitted at round-number prices if investors use these numbers as cognitive shortcuts., I find that investors with lower cognitive abilities, defined as higher limit order submission ratios at round numbers, suffer greater losses in their round-numbered and non-round-numbered limit orders, market orders, and round-trip trades. The positive correlation between cognitive ability and investment performance is monotonic and robust across futures and options markets. In addition, past trading experience helps mitigate the cognitive limitation. The second essay studies the herding behavior of investors. The second essay studies the herding behavior of investors. I find that individual investors trade in the same direction with other individual investors in the same branch of a broker. Individual investors' tendency to herd is persistent, and it is negatively associated with their cognitive abilities and trading experience. The higher the herding tendency of an individual investor is, the worse she performs in her investments. Importantly, the negative association between herding and investment performance is driven by the orders that are traded in the same direction with other individual investors. Our results suggest that herding with other individuals imposes a direct cost to individual investors. DOI: 10.5353/th_b5334870 Subjects: Investments - Psychological aspects

Cognitive Limitation, Herding Behavior, and Investment Performance

Author : 趙靜
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (899 download)

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Book Synopsis Cognitive Limitation, Herding Behavior, and Investment Performance by : 趙靜

Download or read book Cognitive Limitation, Herding Behavior, and Investment Performance written by 趙靜 and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Cognitive Error in the Measurement of Investment Returns

Author : S. Hayley
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (16 download)

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Book Synopsis Cognitive Error in the Measurement of Investment Returns by : S. Hayley

Download or read book Cognitive Error in the Measurement of Investment Returns written by S. Hayley and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Beyond Human Comprehension

Author : Thomas E. Berghage
Publisher :
ISBN 13 : 9781401034290
Total Pages : 0 pages
Book Rating : 4.0/5 (342 download)

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Book Synopsis Beyond Human Comprehension by : Thomas E. Berghage

Download or read book Beyond Human Comprehension written by Thomas E. Berghage and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Money managers have reached the limits of their human capabilities, and you need look no further then the growth of index funds for evidence of this. Ninety percent of active money managers have not been able to beat the performance of the S&P500 Index for any extended period of time. We have overloaded our human decision makers with information; more information than they can possibly assimilate. The only way to handle this problem is with advanced intelligent computer systems; systems that can detect and understand the complex non-linear relationships that exist within financial data. To beat the dumb index will require investment professionals to embrace change and learn to harness the new advances in computer intelligence. We need to think about changing the security analysis process just like Frederick W. Taylor changed the industrial process a hundred years ago. It is hard to believe that the first electronic computer (ENIAC) was introduced in 1946 and was less sophisticated than many of the toys your children currently play with. While it has taken the human brain over 50,000,000 years to evolve to what it is today; it has taken the computer a mere 52 years to evolve to its current status. In a matter of just 52 years the computer has gone from being able to do a few mathematical calculations per second to being able to beat the best human chess master in the world. With computer speed and storage capacity doubling almost every eighteen months it won’t be long before the computer has the raw intellectual capacity of the human brain. It is already solving specific problems, such as picking stocks, better than humans. What do you think will happen during the next 50 years? Many people respond to the idea of Artificially Intelligent (AI) investment systems by saying that they are nothing more than quantitative systems. Yes, they are quantitative systems in that they run on computers, but there is a real difference between what is normally called a quantitative system and an advanced AI system. The difference is, who makes up the investment rules and what information is important in discriminating between good and poor investment opportunities. In most quantitative systems, even in an advance Expert System form, humans make up the investment rules and mathematically derive the weightings associated with the rules. Computer systems that depend on outside human intelligence to program their actions are not inherently intelligent. In advanced AI systems, the computer makes up its own rules and weightings. The computer learns from examples of good and poor performing stocks, and determines its own ways for discriminating between them. The procedures that are derived by the computer are often so complex that they defy human understanding. In addition to making up its own rules, advanced AI systems look at corporate financial data differently. Just like in the human brain, where information is not stored in the brain cells, but rather in the connections and relationships between cells, so too is corporate performance information stored in the relationships between financial numbers. Assessing the performance of companies is not so much in the numbers as it is in the connections between the numbers. Financial analysts recognized this early on and have used first order relational information in the form of financial ratios for many years. With advanced AI systems we are finally able to look at and evaluate high order interrelationships in financial data that have been far too complex to analyze with less sophisticated systems. These then are the fundamental differences between what has been used in the past and what will be used in the future. This book is designed to explain some of the limitations of human cognitive ability and to suggest an alternative approach to one of the most interesting problems facing the financial industry; how t

The Biology of Investing

Author : John R. Nofsinger
Publisher : Routledge
ISBN 13 : 1000050203
Total Pages : 205 pages
Book Rating : 4.0/5 ( download)

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Book Synopsis The Biology of Investing by : John R. Nofsinger

Download or read book The Biology of Investing written by John R. Nofsinger and published by Routledge. This book was released on 2020-03-30 with total page 205 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why do people’s financial and economic preferences vary so widely? ‘Nurture’ variables such as socioeconomic factors partially explain these differences, but scientists have been discovering that ‘nature’ also plays an important role. This is the first book to bring together these scientific insights for a holistic view of the role of human biology in financial decision-making. Geneticists are now examining which genetic markers are associated with financial and economic preferences. Neuroscientists are now determining where in the brain financial decisions are made and how that varies between people. Endocrinologists relate the level of different hormones circulating in the body to financial risk-taking. Researchers are exploring how physiology and environmental conditions influence investment decisions, and how three types of cognitive ability play essential roles in investment success. This exciting and relevant work being done in these academic silos has generally not been transmitted among the scientific areas, or to industry. For the first time, this book integrates all these areas, explaining the myriad ways in which a person’s biology influences their investing decisions. Financial analysts, advisors, market participants, and upper-level undergraduate and postgraduate students of behavioral finance, behavioral economics, and investing will find this book invaluable, enabling a deeper understanding of investors’ decision-making processes. To further ensure this new material is accessible to students, PowerPoint slides are available online for instructors’ use.

ICTERI 2021 Workshops

Author : Oleksii Ignatenko
Publisher : Springer Nature
ISBN 13 : 303114841X
Total Pages : 575 pages
Book Rating : 4.0/5 (311 download)

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Book Synopsis ICTERI 2021 Workshops by : Oleksii Ignatenko

Download or read book ICTERI 2021 Workshops written by Oleksii Ignatenko and published by Springer Nature. This book was released on 2022-09-13 with total page 575 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book contains the workshops papers presented at the 17th International Conference on Information and Communication Technologies in Education, Research, and Industrial Applications, ICTERI 2021, held in Kherson, Ukraine, in September-October 2021. The 33 revised full papers and 4 short papers included in this volume were carefully reviewed and selected from 105 initial submissions. The papers are organized according to the following workshops: 9th International Workshop on Information Technology in Economic Research (ITER 2021); 5th International Workshop on Methods, Resources and Technologies for Open Learning and Research (MROL 2021); International Workshop RMSEBT 2021: Rigorous Methods in Software Engineering and Blockchain Technologies; 7th International Workshop on Theory of Reliability and Markov Modeling for Information Technologies (TheRMIT 2021); 1st Ukrainian Natural Language Processing Workshop (UNLP 2021).

Handbook of Cognitive Aging

Author : Scott M. Hofer
Publisher : SAGE
ISBN 13 : 145227892X
Total Pages : 745 pages
Book Rating : 4.4/5 (522 download)

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Book Synopsis Handbook of Cognitive Aging by : Scott M. Hofer

Download or read book Handbook of Cognitive Aging written by Scott M. Hofer and published by SAGE. This book was released on 2008-03-20 with total page 745 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Provides a unique perspective. I am particularly impressed with the sections on innovative design and methods to investigate cognitive aging and the integrative perspectives. None of the existing texts covers this material to the same level." —Donna J. La Voie, Saint Louis University "The emphasis on integrating the literature with theoretical and methodological innovations could have a far-reaching impact on the field." —Deb McGinnis, Oakland University The Handbook of Cognitive Aging: Interdisciplinary Perspectives clarifies the differences in patterns and processes of cognitive aging. Along with a comprehensive review of current research, editors Scott M. Hofer and Duane F. Alwin provide a solid foundation for building a multidisciplinary agenda that will stimulate further rigorous research into these complex factors. Key Features Gathers the widest possible range of perspectives by including cognitive aging experts in various disciplines while maintaining a degree of unity across chapters Examines the limitations of the extant literature, particularly in research design and measurement, and offers new suggestions to guide future research Highlights the broad scope of the field with topics ranging from demography to development to neuroscience, offering the most complete coverage available on cognitive aging

Financial Education and Risk Literacy

Author : Riccardo Viale
Publisher : Edward Elgar Publishing
ISBN 13 : 178990885X
Total Pages : 328 pages
Book Rating : 4.7/5 (899 download)

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Book Synopsis Financial Education and Risk Literacy by : Riccardo Viale

Download or read book Financial Education and Risk Literacy written by Riccardo Viale and published by Edward Elgar Publishing. This book was released on 2021-01-29 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt: This innovative book explores how the design of financial education programmes could benefit from the findings of behavioural economics and finance and cognitive sciences. It covers the social, cultural and technological determinants of financial education, the role of the banking system in promoting financial literacy, and how governments and regulatory authorities are dealing with financial education and risk literacy programmes in schools.

Finance for Normal People

Author : Meir Statman
Publisher : Oxford University Press
ISBN 13 : 019062647X
Total Pages : 489 pages
Book Rating : 4.1/5 (96 download)

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Book Synopsis Finance for Normal People by : Meir Statman

Download or read book Finance for Normal People written by Meir Statman and published by Oxford University Press. This book was released on 2017 with total page 489 pages. Available in PDF, EPUB and Kindle. Book excerpt: Finance for Normal People teaches behavioral finance to people like you and me - normal people, neither rational nor irrational. We are consumers, savers, investors, and managers - corporate managers, money managers, financial advisers, and all other financial professionals. The book guides us to know our wants-including hope for riches, protection from poverty, caring for family, sincere social responsibility and high social status. It teaches financial facts and human behavior, including making cognitive and emotional shortcuts and avoiding cognitive and emotional errors such as overconfidence, hindsight, exaggerated fear, and unrealistic hope. And it guides us to banish ignorance, gain knowledge, and increase the ratio of smart to foolish behavior on our way to what we want. These lessons of behavioral finance draw on what we know about us-normal people-including our wants, cognition, and emotions. And they draw on the roles of these factors in saving and spending, portfolio construction, returns we can expect from our investments, and whether we can hope to beat the market. Meir Statman, a founder of behavioral finance, draws on his extensive research and the research of many others to build a unified structure of behavioral finance. Its foundation blocks include normal behavior, behavioral portfolio theory, behavioral life-cycle theory, behavioral asset pricing theory, and behavioral market efficiency.

Complex Problem Solving

Author : Peter A. Frensch
Publisher : Psychology Press
ISBN 13 : 1317781392
Total Pages : 364 pages
Book Rating : 4.3/5 (177 download)

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Book Synopsis Complex Problem Solving by : Peter A. Frensch

Download or read book Complex Problem Solving written by Peter A. Frensch and published by Psychology Press. This book was released on 2014-04-04 with total page 364 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume presents a state-of-the-science review of the most promising current European research -- and its historic roots of research -- on complex problem solving (CPS) in Europe. It is an attempt to close the knowledge gap among American scholars regarding the European approach to understanding CPS. Although most of the American researchers are well aware of the fact that CPS has been a very active research area in Europe for quite some time, they do not know any specifics about even the most important research. Part of the reason for this lack of knowledge is undoubtedly the fact that European researchers -- for the most part -- have been rather reluctant to publish their work in English-language journals. The book concentrates on European research because the basic approach European scholars have taken to studying CPS is very different from one taken by North American researchers. Traditionally, American scholars have been studying CPS in "natural" domains -- physics, reading, writing, and chess playing -- concentrating primarily on exploring novice-expert differences and the acquisition of a complex skill. European scholars, in contrast, have been primarily concerned with problem solving behavior in artificially generated, mostly computerized, complex systems. While the American approach has the advantage of high external validity, the European approach has the advantage of system variables that can be systematically manipulated to reveal the effects of system parameters on CPS behavior. The two approaches are thus best viewed as complementing each other. This volume contains contributions from four European countries -- Sweden, Switzerland, Great Britain, and Germany. As such, it accurately represents the bulk of empirical research on CPS which has been conducted in Europe. An international cooperation started two years ago with the goal of bringing the European research on complex problem solving to the awareness of American scholars. A direct result of that effort, the contributions to this book are both informative and comprehensive.

Investment Traps Exposed

Author : H. Kent Baker
Publisher : Emerald Group Publishing
ISBN 13 : 1787142531
Total Pages : 447 pages
Book Rating : 4.7/5 (871 download)

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Book Synopsis Investment Traps Exposed by : H. Kent Baker

Download or read book Investment Traps Exposed written by H. Kent Baker and published by Emerald Group Publishing. This book was released on 2017-03-20 with total page 447 pages. Available in PDF, EPUB and Kindle. Book excerpt: Investment Traps Exposed helps investors and investment practitioners increase their awareness about the external and internal traps that they or their clients can encounter.

Aging in Asia

Author : National Research Council
Publisher : National Academies Press
ISBN 13 : 0309254094
Total Pages : 486 pages
Book Rating : 4.3/5 (92 download)

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Book Synopsis Aging in Asia by : National Research Council

Download or read book Aging in Asia written by National Research Council and published by National Academies Press. This book was released on 2012-07-31 with total page 486 pages. Available in PDF, EPUB and Kindle. Book excerpt: The population of Asia is growing both larger and older. Demographically the most important continent on the world, Asia's population, currently estimated to be 4.2 billion, is expected to increase to about 5.9 billion by 2050. Rapid declines in fertility, together with rising life expectancy, are altering the age structure of the population so that in 2050, for the first time in history, there will be roughly as many people in Asia over the age of 65 as under the age of 15. It is against this backdrop that the Division of Behavioral and Social Research at the U.S. National Institute on Aging (NIA) asked the National Research Council (NRC), through the Committee on Population, to undertake a project on advancing behavioral and social research on aging in Asia. Aging in Asia: Findings from New and Emerging Data Initiatives is a peer-reviewed collection of papers from China, India, Indonesia, Japan, and Thailand that were presented at two conferences organized in conjunction with the Chinese Academy of Sciences, Indian National Science Academy, Indonesian Academy of Sciences, and Science Council of Japan; the first conference was hosted by the Chinese Academy of Social Sciences in Beijing, and the second conference was hosted by the Indian National Science Academy in New Delhi. The papers in the volume highlight the contributions from new and emerging data initiatives in the region and cover subject areas such as economic growth, labor markets, and consumption; family roles and responsibilities; and labor markets and consumption.

Your Essential Guide to Sustainable Investing

Author : Larry E. Swedroe
Publisher : Harriman House Limited
ISBN 13 : 0857199056
Total Pages : 175 pages
Book Rating : 4.8/5 (571 download)

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Book Synopsis Your Essential Guide to Sustainable Investing by : Larry E. Swedroe

Download or read book Your Essential Guide to Sustainable Investing written by Larry E. Swedroe and published by Harriman House Limited. This book was released on 2022-04-05 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: Sustainable investing is booming. The investment industry is fast approaching a point where one-third of global assets under management are invested with a sustainable objective. But do sustainable investment products do what investors expect them to do? How can an investor tell if their investments are having the social impact they want? Does that impact come at a financial cost? And how can investors weave their way through the web of confusing acronyms, conflicting agency ratings, and the mass of fund offerings, confident that they can recognize and avoid corporate greenwashing? Larry Swedroe and Sam Adams cut through the fog and bring clarity on all of this and more—providing investors with a firm plan for truly sustainable investing. The authors first define sustainable investing, illuminating the differences between ESG, SRI and impact investing, and reveal who is currently investing sustainably and why. They then move on to a comprehensive review of the academic research. What does the data really say about risk and return in sustainable investing? What performance can you genuinely expect from sustainable investments? And how are today’s sustainable investors using their influence to drive positive changes for society and the environment? Finally, this book arms you with a practical guide to investing sustainably, including how to effectively choose your asset allocation strategy, and select the managers and funds through which your money can create the change you want to see in the world. Your Essential Guide to Sustainable Investing is the definitive go-to resource that investors have been waiting for.

Cognitive Aging

Author : Institute of Medicine
Publisher : National Academies Press
ISBN 13 : 0309368650
Total Pages : 300 pages
Book Rating : 4.3/5 (93 download)

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Book Synopsis Cognitive Aging by : Institute of Medicine

Download or read book Cognitive Aging written by Institute of Medicine and published by National Academies Press. This book was released on 2015-07-21 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: For most Americans, staying "mentally sharp" as they age is a very high priority. Declines in memory and decision-making abilities may trigger fears of Alzheimer's disease or other neurodegenerative diseases. However, cognitive aging is a natural process that can have both positive and negative effects on cognitive function in older adults - effects that vary widely among individuals. At this point in time, when the older population is rapidly growing in the United States and across the globe, it is important to examine what is known about cognitive aging and to identify and promote actions that individuals, organizations, communities, and society can take to help older adults maintain and improve their cognitive health. Cognitive Aging assesses the public health dimensions of cognitive aging with an emphasis on definitions and terminology, epidemiology and surveillance, prevention and intervention, education of health professionals, and public awareness and education. This report makes specific recommendations for individuals to reduce the risks of cognitive decline with aging. Aging is inevitable, but there are actions that can be taken by individuals, families, communities, and society that may help to prevent or ameliorate the impact of aging on the brain, understand more about its impact, and help older adults live more fully and independent lives. Cognitive aging is not just an individual or a family or a health care system challenge. It is an issue that affects the fabric of society and requires actions by many and varied stakeholders. Cognitive Aging offers clear steps that individuals, families, communities, health care providers and systems, financial organizations, community groups, public health agencies, and others can take to promote cognitive health and to help older adults live fuller and more independent lives. Ultimately, this report calls for a societal commitment to cognitive aging as a public health issue that requires prompt action across many sectors.

formal versus informal finance: evidence from china

Author : Vojislav Maksimovic
Publisher : World Bank Publications
ISBN 13 :
Total Pages : 77 pages
Book Rating : 4./5 ( download)

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Book Synopsis formal versus informal finance: evidence from china by : Vojislav Maksimovic

Download or read book formal versus informal finance: evidence from china written by Vojislav Maksimovic and published by World Bank Publications. This book was released on 2008 with total page 77 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: China is often mentioned as a counterexample to the findings in the finance and growth literature since, despite the weaknesses in its banking system, it is one of the fastest growing economies in the world. The fast growth of Chinese private sector firms is taken as evidence that it is alternative financing and governance mechanisms that support China's growth. This paper takes a closer look at firm financing patterns and growth using a database of 2,400 Chinese firms. The authors find that a relatively small percentage of firms in the sample utilize formal bank finance with a much greater reliance on informal sources. However, the results suggest that despite its weaknesses, financing from the formal financial system is associated with faster firm growth, whereas fund raising from alternative channels is not. Using a selection model, the authors find no evidence that these results arise because of the selection of firms that have access to the formal financial system. Although firms report bank corruption, there is no evidence that it significantly affects the allocation of credit or the performance of firms that receive the credit. The findings suggest that the role of reputation and relationship based financing and governance mechanisms in financing the fastest growing firms in China is likely to be overestimated.

Research in Multidisciplinary Subjects (Volume-3)

Author : Chief Editor- Biplab Auddya, Editor- V. S. Karpagavalli, Dr. Manjushree. R, Dr. Rajeev Kumar Sharma, Jayanth H, Punit Moris Ekka, Dr. Bitopi Nath, Sarita Soy
Publisher : The Hill Publication
ISBN 13 : 8196477619
Total Pages : 118 pages
Book Rating : 4.1/5 (964 download)

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Book Synopsis Research in Multidisciplinary Subjects (Volume-3) by : Chief Editor- Biplab Auddya, Editor- V. S. Karpagavalli, Dr. Manjushree. R, Dr. Rajeev Kumar Sharma, Jayanth H, Punit Moris Ekka, Dr. Bitopi Nath, Sarita Soy

Download or read book Research in Multidisciplinary Subjects (Volume-3) written by Chief Editor- Biplab Auddya, Editor- V. S. Karpagavalli, Dr. Manjushree. R, Dr. Rajeev Kumar Sharma, Jayanth H, Punit Moris Ekka, Dr. Bitopi Nath, Sarita Soy and published by The Hill Publication. This book was released on 2023-08-24 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt: