Suboptimal decision-making may lead to adverse consequences both at the individual and social levels. This study contributes by advancing empirical evidence on technological supports for interventions to improve financial decision-making. These educational approaches involve technology to support individuals in reducing the incidence of cognitive biases. the CSCL and the TAM, can implement individuals’ financial decision-making. Literature suggests that two educational approaches, i.e. Participants who took part in the TAM-based group reported lower financial biases than those in the CSCL-based training group and the control group. The authors randomly assigned the participants (N = 507) to one of two training conditions or a control group, and in turn, we assessed the incidence of financial biases after the training interventions. The study adopted a quasi-experimental research design. This paper aims to empirically compare the degree to which two technological interventions, based on the computer-supported collaborative learning (CSCL) and the technology acceptance model (TAM), were associated with a different incidence of financial biases. Managerial contributions: Financial institutions may, concerning management, assess under which conditions establishing trust relationships are most important in determining investment or financing decisions by the financial manager. Specifically, this study elucidated that trust displays a different effect on investment and financing decisions. Theoretical contributions: In theoretical terms, these results contribute to fill a gap in the search for the effects of manager's trust in the financial institution. Higher levels of risk perception increase the effect of trust in the investment decision, while under conditions of low risk perception, trust influences the financing decision. Results: The results show that trust displays a positive linear effect on the investment decision, but it does not present a linear relationship with the financing decision. Originality: This study shows how the characteristics of the relationship between the financial manager and the financial institution influence the decision-making processes of investment and financing.
Method: The study was carried out through a survey of 232 financial managers. Objective: Given the role of trust and risks perceived by the financial manager in his relationship with the financial institution, this study seeks to verify the moderating role of perceived risks in the relationship between trust and investment decisions and organizational financing. Allying experimental manipulations to eye-tracking technology, the present research begins to explore the underpinnings of end-anchoring. Substantial investment asymmetries (up to 75%) emerge even as stock-price distributions were generated randomly to simulate times when the market conjuncture is hesitant and no real upward or downward trend can be identified.
Specifically, a stock-price closing upward (downward) fosters upward (downward) forecasts for tomorrow and, accordingly, more (less) investing in the present. Five experiments find that the last trading day(s) of a stock bear a disproportionately (and unduly) high importance on investment behavior, a phenomenon we coin end-anchoring. In essence, we ask whether and how visual biases in data interpretation impact financial decision-making and risk-taking. To this effect, the present research examines how people process graphical displays of financial information (e.g., stock-prices) to forecast future trends and invest accordingly. Consumers' welfare largely depends on the soundness of their financial decisions.