Self-Attribution Bias in Financial Decision Could Be Decreased with Resilience? A Study on Resilience Centered Training

Year 2019, Volume: 3 Issue: 2, 217 - 228, 31.05.2019

Çağrı Hamurcu

https://doi.org/10.25295/fsecon.2019.02.009

Abstract

Topic

This is the first study to focus on the self-attribution
bias in financial decision and resilience relation. Resilience is one of the
empowering factor to
alleviate the negative effects of stressors and adversities, to comply with the
new situations and to think in realistic way. When considered this point of
view, self-attribution bias in
financial decision and resilience relation could be an important subject.

 

Background

There is no any
scientific work about the subject of the self-attribution bias in financial
decision and resilience relation. In this study it is aslo analyzed the effect
of resilience trainings on self attribution bias and resilience.

 

Purpose/Aim

One of the
aims of this work is to invesitegate the self-attribution bias in financial
decision and resilience correlation. The other aim is to find an evidence of how
the self-attribution bias in financial decision and resilience changes with
resilience centered trainings.

 

Scope/Method

For this
reason individual self-attribution bias and resilience scores are measured. In
order to measure the self attribution bias, specific statemens about the bias
are conducted. To evaluate the resilience scores, The Turkish version of the
Resilience Scale for Adults is used.               

 

Results

The results
show firstly, there is a negative relation between the self attribution bias and
the resilience. Secondly it is seen that, the self attribution bias scores are
decreased and the resilience scores are increased after the resilience centered
trainings.

 

Conclusions

Importantly,
our results provide the evidence about the relation of self attribution bias
and resilience and the effect of resilience centered trainings on these
factors. On the other hand, it is needed more research studies to validate and understand
these findings.

Keywords

Behavioral Finance, Self-Attribution Bias, Resilience, Resilience Centered Training

References

• Baruth, K. E., & Carroll, J. J. (2002). A formal assessment of resilience: The Baruth Protective Factors Inventory. Journal of Individual Psychology, 58, 235−244.
• Basım, H. N., & Çetin, F. (2011). Yetişkinler için psikolojik dayanıklılık ölçeğinin güvenilirlik ve geçerlilik çalışması. Türk Psikiyatri Dergisi, 22(2), 104-114.
• Connor, K. M., & Davidson, J. R. (2003). Development of a new resilience scale: The Connor‐Davidson resilience scale (CD‐RISC). Depression and anxiety, 18(2), 76-82.
• Doukas, J. A., & Petmezas, D. (2007). Acquisitions, overconfident managers and self‐attribution bias. European Financial Management, 13(3), 531-577.
• Friborg, O., Hjemdal, O., Rosenvinge, J. H., & Martinussen, M. (2003). A new rating scale for adult resilience: what are the central protective resources behind healthy adjustment? International journal of methods in psychiatric research, 12(2), 65-76.
• Friborg, O. (2005). Validation of a scale to measure resilience in adults. Department of Psychology, Faculty og social Sciences, University of Tromsø.
• Friborg, O., Barlaug, D., Martinussen, M., Rosenvinge, J. H., & Hjemdal, O. (2005). Resilience in relation to personality and intelligence. International journal of methods in psychiatric research, 14(1), 29-42.
• Hamurcu, Ç., & Hamurcu, H. D. Y. (2017). How Depression And Social Media Preferences Affect Financial Investment&Gambling Risk Taking Behaviours. Journal of Life Economics, 4(4), 143-156.
• Hawley, D. R., & DeHaan, L. (1996). Toward a definition of family resilience: Integrating life‐span and family perspectives. Family process, 35(3), 283-298.
• Hoffmann, A. O., & Post, T. (2014). Self-attribution bias in consumer financial decision-making: How investment returns affect individuals’ belief in skill. Journal of Behavioral and Experimental Economics, 52, 23-28.
• Holling, C. S. (1973). Resilience and stability of ecological systems. Annual review of ecology and systematics, 4(1), 1-23.
• Joyce, S., Shand, F., Bryant, R. A., Lal, T. J., & Harvey, S. B. (2018). Mindfulness-Based Resilience Training in the Workplace: Pilot Study of the Internet-Based Resilience@ Work (RAW) Mindfulness Program. Journal of medical Internet research, 20(9), e10326.
• Masten, A. S., Hubbard, J. J., Gest, S. D., Tellegen, A., Garmezy, N., & Ramirez, M. (1999). Competence in the context of adversity: Pathways to resilience and maladaptation from childhood to late adolescence. Development and psychopathology, 11(1), 143-169.
• Mishra, K. C., & Metilda, M. J. (2015). A study on the impact of investment experience, gender, and level of education on overconfidence and self-attribution bias. IIMB Management Review, 27(4), 228-239.
• Oshio, A., Kaneko, H., Nagamine, S., & Nakaya, M. (2003). Construct validity of the adolescent resilience scale. Psychological Reports, 93, 1217 – 1222.
• Pemberton, C. (2015). Resilience: A Practical Guide for Coaches. Open University Press.
• Rutter, M. (1990). Psychosocial resilience and protective mechanisms. In Rolf, J., Masten, A. S., Cicchetti, D., Neuchterlein, K. H., & Weintraub, S. (Eds.), Risk and protective factors in the development of psychopathology (pp. 181–214). New York: Cambridge University Press.
• Schneider, D. J., Hastorf, A. H. and Ellsworth, P. C., Person Perception, 2nd edn (Addison-Wesley, 1979).
• Sinclair, V. G., & Wallston, K. A. (2004). The development and psychometric evaluation of the Brief Resilient Coping Scale. Assessment, 11(1), 94-101.
• Thompson, S. R., & Dobbins, S. (2018). The Applicability of Resilience Training to the Mitigation of Trauma-Related Mental Illness in Military Personnel. Journal of the American Psychiatric Nurses Association, 24(1), 23-34.
• Wagnild, G. M., & Young, H. M. (1993). Development and psychometric evaluation of the Resilience Scale. Journal of nursing measurement.
• Wolosin, R. J., Sherman, S. J. and Till, A., ‘Effects of cooperation and competition on responsibility attribution after success and failure’, Journal of Experimental Social Psychology, Vol. 9, 1973, pp. 220–35.
• Yalçın, K. C. (2010). Market rationality: Efficient market hypothesis versus market anomalies. European Journal of Economic and Political Studies, 3(2), 23-38.
• Yates, T. M., Egeland, B., & Sroufe, A. (2003). Rethinking resilience. Resilience and vulnerability: Adaptation in the context of childhood adversities, 243-266.