Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/248067 
Year of Publication: 
2020
Citation: 
[Journal:] Verslas: Teorija ir praktika / Business: Theory and Practice [ISSN:] 1822-4202 [Volume:] 21 [Issue:] 2 [Publisher:] Vilnius Gediminas Technical University [Place:] Vilnius [Year:] 2020 [Pages:] 686-694
Publisher: 
Vilnius Gediminas Technical University, Vilnius
Abstract: 
This research aims to examine empirically the overreliance on representativeness heuristic and anchoring-adjustment influences experienced by investors in forecasting future earnings. This research was a laboratory experiment with a design of 2x2 full factorial between subject. The results showed that representativeness heuristics were only experienced by investors who obtained positive information. Besides, this study also shows that investors do not overreliance on anchoring-adjustment heuristics. Generally, this research shows that cognitive biases occur when the information presented is of good value so that it can be taken into consideration for investors to be more careful in making predictions. Multiple benchmark information can be used as a consideration in evaluating the company's earnings and stock performance.
Subjects: 
representativeness
anchoring-adjustment
multiple benchmark information
JEL: 
C91
G41
M41
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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