The effects of securities analysts' metacognitive ability on stock recommendation confidence judgment and accuracy as a function of stock brokerage firm's ranking in the brokerage industry

• Main Authors: Estrada, Anicka Vanya M., Orocio, Karen Aiza, Purugganan, Ma. Aurora R.
• Format: text
• Language: English
• Published: Animo Repository 2005
• Subjects: Investments > Psychological aspects; Investments > Decision making; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18350
• Institution: De La Salle University

Studies have shown that the stock market environment is influenced by many irrational behaviors rooted from individual biases, preferences, judgments and experiences. These irrational behaviors become the focus in behavioral finance as these behaviors have the power to lead to substantial market inefficiency. This study focuses on the application of behavioral finance in explaining the stock market environment. Particularly, this study focuses in finding the effect of the security analysts' metacognitive ability-- the assessment and management of one's own knowledge, on stock recommendation confidence judgment and accuracy in confidence judgment as a function of the stock brokerage firm's ranking in the brokerage industry. Proponents of this study include 30 security analysts to answer survey questionnaires. An analysis of variance is used to investigate the data collected from the survey questionnaires. Results of this study reveal that the security analyst's metacognitive ability has a main effect on the accuracy of confidence judgment. Furthermore, the security analyst's metacognitive ability reveals a significant difference on the brokerage ranking in the brokerage industry.