The Influence Of Information Presenting On Individual’s Investment Decision-making

Information plays a significant role in decision-making.Rencent years,the paradigm of decision-making is shifting from traditional descriptive paradigm to information processing paradigm,in which understands the mechanism of decision though how decision-relevant information is sampled,retrieved and integrated.However,the nature of information itself,how information is presented(the organization of information,sequence of information,ect.),is proved to influence information processing and individual’s decision-making.Order Effeect from Belief-adjustment Model has been proved to influence individual’s judgement and decision in stock market:individual’s estimation on stock price is under the affect of recency effect when facing short serial of complicated information.Besides,hedonic editing hypothesis,proposed by Thaler,the winner of 2017 Nobel price,suggests that presentation of information will influence individual’s emotion,perceived value and decision.Meanwhile,according to affect-as-information theory,emotion is also seen as an information clue that directly affects the individual s decision-making process.In the study of emotions and decision-making,a large number of studies has shown that both integrated emotions generated by information and stimuli(related to current decisions and judgments)and incidental emotions that are unrelated to stimulating materials(independent of current decisions and judgments)have an impact on individual decision making and information processing.Experimental research based on the theory of Appraisal-tendency framework shows that under positive and high-certainty emotions,such as happiness and anger,individuals often adopt heuristic processing methods;while under negative and low-certainty emotions,such as sadness and fear,Individuals use systematic processing methods.As we can see,individual decision-making is influenced by both the roles of emotion and information processing.In financial investment decisions,investment decisions are largely dependent on the information received.Based on the theories above,in this paper,we focus on the field of investment decision-making.Through behavioral data and neurophysiological data,we study and explore the nature of information and organization of information under uncertainy decision-making from the perspective of emotion and information processing.Based on Hedonic Editing Hypothesis,Belief-adjustment Model,Query Theory and Appraisal-Tendency Framework,we designed four studies in total of seven experiments.From various angles,we discussed the influence the nature of information and the information presenting and proved the influence of emotion and the duel-process model.In Study 1,we focus on the impact of information presentation on investment decisions.In Experiment 1,we used the behavioral experiment to verify the hedonic editing hypothesis,which proposed by Nobel price winnder of 2017,Thaler in the field of investment decision-making:the way that information is presented affects investment decisions.On the basis of Experiment 1,Experiment 2 introduces one more variable:the order of information,using behavioral experiments and simultaneously using EEG indicators and physiological indicators.The results show that information presentation and order both affect individual decision-making.Emotional and behavioral tendencies,and have an impact on behavioral decisions.Here we proved and extended the appliance of Hedonic editing hypothesis in investment decision field.In Study 2,we explain the impact of information presentation order on information processing and investment decisions from the perspective of query theory.The results of the EEG indicators and behavioral data partially validate the paradigm of query theory.At the same time,the Approach-withdraw index also proves that the information order affects the information processing and investment decision by affecting the individual s inference decision process during individual decision-making.The recency-effect affects individual decision-making by affecting the value of big information.In Study 3,we focus on another variable:information scale influences order of information processing.In Experiment 4,we use the mental effort as an indicator.The results of the study show that big news is comfirmative and small news is tentive.On the basis of this experiment,in Experiment 5,we study the results of individual investment decision when continuous small messages or single large messages to verify the results of Experiment 4,and obtained partial verification.Although follow-up research is still needed,Study 3 provides new research ideas for explaining the phenomenon of "frogs in pan" in the real stock market.In Study 4,based on the Appraisal-tendency Framwork,we consider both the emotional certainty and the certainty of information,and study the influence of emotion on information processing and investment decision-making in high/low certainty information.In Experiment 6,we used an eye tracker to observe the visual interest of the subjects when reading the information under the two emotions:anger and sadness.There are significant differences in the attention to the detailed content under sadness and anger.In Experiment 7,from the perspectives of behavioral data and neurophysiological indicators,the differences between individuals’ information processing of high and low certainty information under specific emotions are studied.Under the sad and anger,we observed differenct influence of emotion in the processing of high and low certainty information.