Cognitive bias, intuitive attributes and investment decision quality in commercial real estate in Uganda

IF 1.6 Q3 BUSINESS, FINANCE Journal of Property Investment & Finance Pub Date : 2021-09-13 DOI:10.1108/jpif-11-2020-0129
M. Kinatta, T. Kaawaase, J. Munene, I. Nkote, S. K. Nkundabanyanga
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引用次数: 6

Abstract

PurposeThis study examines the relationship between investor cognitive bias, investor intuitive attributes and investment decision quality in commercial real estate in Uganda.Design/methodology/approachA cross-sectional research survey was used in this study, and data were collected from 200 investors of commercial real estate in Uganda using a structured questionnaire. Hierarchical regression analysis was used to test the hypotheses derived under this study.FindingsThe results indicate that investor cognitive bias and investor intuitive attributes are positive and significant determinants of investment decision quality in commercial real estate. In addition, the two components of Investor cognitive bias (framing variation and cognitive heuristics) are positive and significant determinants of investment decision quality, whereas mental accounting is a negative and significant determinant of investment decision quality. For investor intuitive attributes, confidence degree and loss aversion are positive and significant determinants of investment decision quality, whereas herding behavior is a negative and significant determinant of investment decision quality in commercial real estate in Uganda.Practical implicationsFor practitioners in commercial real estate sector should emphasize independent evaluation of investment opportunities (framing variation), simplify information regarding investments (Cognitive heuristics), believe in own abilities (Confidence degree), be risk averse (loss aversion) and avoid making decisions based on subjective visual mind (mental accounting) and group think/herding in order to make quality investment decisions. For policymakers, the study has illuminated factors such as provision of reliable information that ought to be taken into account when promulgating policies for regulation of the commercial real estate sector. This will help investors to come up with investment decisions which are plausible.Originality/valueFew studies have focused on investor cognitive bias and investor intuitive attributes on investment decision quality in commercial real estate. This study is the first to examine the relationship, especially in the commercial real estate sector in a developing country like Uganda.
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认知偏差、直觉属性与乌干达商业地产投资决策质量
目的本研究考察了乌干达商业地产投资者的认知偏差、投资者直觉属性和投资决策质量之间的关系。设计/方法/方法本研究采用横断面调查,采用结构化问卷从乌干达200名商业地产投资者中收集数据。分层回归分析用于检验本研究得出的假设。研究结果表明,投资者认知偏差和投资者直觉属性是影响商业地产投资决策质量的积极而显著的决定因素。此外,投资者认知偏差的两个组成部分(框架变异和认知启发式)是投资决策质量的积极和显著决定因素,而心理会计是投资决策品质的消极和显著决定因子。对于投资者的直觉属性而言,置信度和损失厌恶是投资决策质量的积极而重要的决定因素,而羊群行为是乌干达商业房地产投资决策质量的一个消极而重要的决定因素。商业房地产行业的从业者应强调对投资机会的独立评估(框架变化),简化投资信息(认知启发式),相信自己的能力(置信度),规避风险(规避损失),避免基于主观视觉思维(心理会计)和群体思维/羊群效应做出决策,以做出高质量的投资决策。对于政策制定者来说,这项研究阐明了在颁布商业房地产行业监管政策时应考虑的因素,如提供可靠信息。这将有助于投资者做出合理的投资决策。原创性/价值很少有研究关注投资者对商业地产投资决策质量的认知偏见和投资者直觉属性。这项研究首次考察了这种关系,尤其是在乌干达这样的发展中国家的商业房地产部门。
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来源期刊
CiteScore
3.50
自引率
23.10%
发文量
33
期刊介绍: Fully refereed papers on practice and methodology in the UK, continental Western Europe, emerging markets of Eastern Europe, China, Australasia, Africa and the USA, in the following areas: ■Academic papers on the latest research, thinking and developments ■Law reports assessing new legislation ■Market data for a comprehensive review of current research ■Practice papers - a forum for the exchange of ideas and experiences
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