Antiherding in Financial Decision Increases Valuation of Return on Investment: An Event-Related Potential Study
Joint Authors
Ma, Qingguo
Wang, Cuicui
Vieito, João Paulo
Jin, Jia
Source
Computational Intelligence and Neuroscience
Issue
Vol. 2017, Issue 2017 (31 Dec. 2017), pp.1-9, 9 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2017-05-28
Country of Publication
Egypt
No. of Pages
9
Main Subjects
Abstract EN
Using event-related potentials, this study investigated how financial herding or antiherding affected the valuation of subsequent outcomes.
For each trial, subjects decided whether to buy the stock according to its net money flow information which could be used to reflect the strength of buying power or selling power of the stock.
The return on investment (ROI) as feedback included the increase or decrease percentage after subjects’ responses.
Results showed that, compared with herding, antiherding induced larger discrepancies of FRN and P300 amplitude between positive ROI and negative ROI, indicating that individuals under antiherding condition had stronger motivation and paid more attention in the evaluation process of ROI.
Moreover, only for positive ROI, the amplitudes of FRN and P300 were modulated by two kinds of behaviors.
We suggested that individuals making antiherd decisions were more confident with their own ability and choices, which reduced the positive outcome prediction error and gave more mental resources to evaluate positive outcome.
However, negative outcomes evoked no different motivational meaning and negative emotion for individuals between herding and antiherding.
The study may provide new insights into neurocognitive processes of herding and antiherding in financial market.
American Psychological Association (APA)
Wang, Cuicui& Jin, Jia& Vieito, João Paulo& Ma, Qingguo. 2017. Antiherding in Financial Decision Increases Valuation of Return on Investment: An Event-Related Potential Study. Computational Intelligence and Neuroscience،Vol. 2017, no. 2017, pp.1-9.
https://search.emarefa.net/detail/BIM-1140973
Modern Language Association (MLA)
Wang, Cuicui…[et al.]. Antiherding in Financial Decision Increases Valuation of Return on Investment: An Event-Related Potential Study. Computational Intelligence and Neuroscience No. 2017 (2017), pp.1-9.
https://search.emarefa.net/detail/BIM-1140973
American Medical Association (AMA)
Wang, Cuicui& Jin, Jia& Vieito, João Paulo& Ma, Qingguo. Antiherding in Financial Decision Increases Valuation of Return on Investment: An Event-Related Potential Study. Computational Intelligence and Neuroscience. 2017. Vol. 2017, no. 2017, pp.1-9.
https://search.emarefa.net/detail/BIM-1140973
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1140973