Beliefs that provide a foundation for heuristics and biases in financial decision-making
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Published:2023-05-31
Issue:2
Volume:23
Page:69-80
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ISSN:1131-6837
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Container-title:Cuadernos de Gestión
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language:
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Short-container-title:cuadernosgestion
Author:
Moya-Ponce ClaudineORCID,
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Madrazo-Lemaroy PilarORCID,
Abstract
Heuristics and biases are the result of intuitive thinking, which is shaped starting from intuitions, feelings, and impressions, which later emerge as beliefs once processed through analytical thinking. In this study, we examine beliefs that provide a foundation for heuristics and biases in financial decision-making through in-depth interviews with 31 upper-class Mexican emerging adults. We found feelings of mistrust that provide a foundation for foreign bias, non-herding behavior and reliance on professional advice, as well as lower-risk investing beliefs that then drive sustainable investing. We also found reflection that their money, in light of their narrative is either saved or invested regardless of its source and that lenders were framed as investors to avoid the shame they associate with borrowing. Implications for future research, educational interventions and providers of financial services are discussed.
Publisher
Enpresa Institutua - Instituto de Economia Aplicada a la Empresa
Subject
Organizational Behavior and Human Resource Management,Strategy and Management,Industrial relations,Business and International Management,Marketing,Business, Management and Accounting (miscellaneous),Finance,Economics, Econometrics and Finance (miscellaneous)