Tendencies in the individual financial investment decision process from the behavioral finance perspective: A research on managers and overconfidence

Behavioral finance has originated from the extensive the discussions of traditional finance and experimental-empirical studies. Behavioral finance theory explains that decision-making units may be far from rational, are inconsistent in their investment preferences, and act under the influence of psychological and emotional tendencies. In this research it is to examine whether there is a relationship between the behavioral manager types and behavioral tendencies of the middle and senior managers working in public banks in Istanbul and finding out to the extent of this relationship. For this purpose, a survey study was applied to the participants, their demographic characteristics were examined, and their descriptive statistics were analyzed. As a result of the test conducted to determine the behavioral manager types, it was seen that there was no significant difference between the behavioral manager types; although they individually represent one of the types as follower, independent, protective and collector. The effects of psychological bias and cognitive tendencies on managers were evaluated with the behavioral bias identification test. As a consequence of this study, it may be evaluated that, managers have behavioral tendencies such as overconfidence, overestimation, hindsight, loss avoidance, representation. Keywords: Behavioral finance, behavioral manager type, behavioral biases test, overconfidence, biases, tendencies