BEYOND OBJECTIVE KNOWLEDGE: THE MODERATING ROLE OF FIELD DEPENDENCE-INDEPENDENCE COGNITION IN FINANCIAL DECISION MAKING

Shun-Chuan Chang, Ying-Chan Tang, Yang-Jung Liu

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

We investigated the effects of objective knowledge and information cues on consumer financial decisions, and examined the moderating effects of field dependence-independence on the decision-making process. Participants were grouped into 2 clusters, that is, field dependent or independent cognition, according to their scores on the Embedded Figures Test (EFT). We then examined how intrinsic objective knowledge and extrinsic information cues were calibrated from an investor's cognitive ability. Results indicated that field independent participants with higher, vs. lower, scores on the EFT showed considerable superiority in acquiring information and were more risk averse. Participants with greater objective knowledge levels and prior domain expertise were also more assertive and risk prone in financial decision making than those with less objective knowledge and domain experience.
Original languageEnglish
Pages (from-to) 519-528
Number of pages10
JournalSocial Behavior and Personality
Volume44
Issue number3
DOIs
StatePublished - 2016

Keywords

  • INFORMATION SEARCH BEHAVIOR; RISK-AVERSION; GENDER-DIFFERENCES; ABILITY; STYLE
  • field dependence; field independence; consumers; objective knowledge; financial decision making; risk taking; cognitive style; information cues; Embedded Figures Test

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