Using decision support to manage the influence of cognitive abilities on share trading performance

Alex Richardson; Shirley Gregor; Richard Heaney

doi:10.1177/0312896211432942

Using decision support to manage the influence of cognitive abilities on share trading performance

Alex Richardson^*, Shirley Gregor, Richard Heaney

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

Online share trading is no longer restricted to expert brokers; there is a diverse population of traders with varying abilities and experience. Decision making in this context can be sub-optimal and risky. This study investigates how performance varies with level of cognitive ability and speed of online trading, and whether a decision aid can overcome traders' disadvantages. The study showed that novice traders with decision support consistently outperformed those without and that the decision aid mitigated the negative effects of higher decision-making speeds and lower cognitive ability. This adds to decision making under time pressure and behavioural finance literature.

Original language	English
Pages (from-to)	523-541
Number of pages	19
Journal	Australian Journal of Management
Volume	37
Issue number	3
DOIs	https://doi.org/10.1177/0312896211432942
Publication status	Published - Dec 2012

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Using decision support to manage the influence of cognitive abilities on share trading performance

Abstract

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