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The University of Southampton
Centre for Risk Research

Bias in Expert Decision Making Event

Dr Shih-Wei Wu
Time:
13:00 - 14:00
Date:
9 May 2019
Venue:
Building 2, Room 1085 Highfield campus, University of Southampton, SO17 1BJ

For more information regarding this event, please email Mario Brito at M.P.Brito@soton.ac.uk .

Event details

Southampton Business School Seminar

Abstract:

We have investigated the influence of investors’ expectation of future market trends on their trading and investment decisions in various market states. The efficiency of mutual-fund markets can be threatened by systematic biases in different decision-makings. Mutual-fund investors exhibit the disposition effect whereas neither type of investor exhibits such effect in the bear market. Stock-fund investors in the bull and neutral markets exhibit the disposition effect, whereas balanced-fund investors exhibit the disposition effect only in the neutral market. This study enables mutual fund managers to plan cash holdings in the trading of various types of mutual funds and in various market states to respond to future fund investors’ fund redemption. Multiple regression analysis is conducted to verify whether stock-fund investors are prone to exhibit the disposition effect in various market states. Stock-fund investors exhibit a higher tendency toward the disposition effect than the balanced-fund investors. In addition, in the bear market the redemption rate for the stock-fund investors is higher than that for the balanced-fund investors that resulted in a high turnover rate.

Speaker Biography:

I was awarded a bachelor degree in Economics at National Taipei University. Subsequently, I was awarded MBA, MSc, and PhD at University of Southampton. I am currently an associate professor and the program director of International MBA (IMBA) and International Master of Financial Technology & Innovative Entrepreneur (IMFI) at National Taipei University of Technology. My research focuses on analyzing behavior in financial markets and corporate finance. I am particularly interested in the decision and risk analysis and the corporate social responsibilities. My teaching focuses on financial markets, management, macroeconomics, risk management, and behavioral finance.

 

 

Speaker information

Dr Shih-Wei Wu ,National Taipei University of Technology,Associate Professor

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