The Anchoring Effect In The Process Of Assets Evaluation

Appraisers’ valuation judgment will be affected by the decision-making behavior, understand the decision-making behavior of appraiser will improve the accuracy of the evaluation results from the perspective of appraiser individual behavior. The anchoring effect which was generated by appraisers’ decision-making during the process of valuation will be studied in this thesis.Firstly, the decision-making behavior of appraiser, the anchoring and adjustment heuristic strategy and anchoring effect will be introduced by the way of literature review. Then the possibility of the existence of anchoring effect in each stage of the evaluation process will be analyzed.At last, all these hypothesis will be verified by questionnaires.Through the statistical analysis and the hypothesis verification, the existence of anchoring effect during the process of valuation can be proud. The result which was revealed by the investigation is that the relative accuracy of anchor values are associated with the richness of the appraisers’ knowledge on the assets that are evaluated. If the appraisers have abundant knowledge about the evaluated assets, the anchor values will be relatively accurate, otherwise, the anchor values will have much bias which will lead to the high risk of the valuation results.So the appraisers should pay more attention to their behaviors during the process of evaluation, especially, when they are short of relate knowledge about the assets they valued, and the supervision department should also establish standard procedure and quality control mechanism for evaluation.