The Effect of Mind Wandering on Risk Tolerance and Money Management Behaviors

Year 2020, Volume: 15 Issue: 60, 876 - 893, 31.10.2020

Orhan Emre Elma , Mahmut Baydaş

https://doi.org/10.19168/jyasar.679380

Cited By: 1

Abstract

Mind-wandering is a state of mind which impairs concentration via vision and thought raids about past or future also pulls apart people from what they are doing, as a result creates an erosion of task performance. The divergence from presence decreases conscious awareness and in most cases people feel themselves less happy. Recent studies about mind-wandering mostly focused on reading quality, driving performance, working memory abilities and also on mood shifts. Results are mostly negative which are; decreasing of reading speed, poor driving experiences along with badly crashes, disrupted performance of working memory, and feeling less happy. 250,000 people from more than 80 countries were analyzed with the help of a smart phone application, which is just made to execute the Killingsworth and Gilbert’s research. The results approved what has already been found: people who have mind-wandering frequently are unhappy or prone to unhappiness. Aside from these negative sides, there are some researches that delivers there is a good side of this phenomenon too. A number of scientists found that mind-wandering can increase critical thinking and improve creative problem solving abilities. In fact, these studies mention that most artists become successful mostly with the help of their wandering minds. Another area which demands focus, and requies critical thinking is financial decisions. People tend to think about their past experiences and try to be able to build a colorful future. In this study the prediction role of mind wandering on money management and risk tolerance is investigated on finance students, which are accepted as future investors. The results show that wandering mind both effects risk tolerance and money management of participants negatively β=-.55, p< .001; β=-.15, p<.05 respectively. Also mind wandering explained 31% of the variance of risk tolerance and 2% of the variance of money management.

Keywords

Behavioral Finance, Mind-Wandering, Risk Tolerance, Investment Decisions

Thanks

ICOAEF VI

Risk Toleransı ve Para Yönetimi'ne Farklı Bir Yaklaşım: Dolaşan Zihnin Bireysel Finansman Üzerindeki Etkisi

Abstract

Dolaşan zihin, geçmiş ya da gelecekle ilgili hayal ve düşünce atakları yoluyla konsantrasyonu bozan ve sonuç olarak da kişilerin o an yaptıkları işlerdeki performanslarını önemli ölçüde azaltan bir zihin halidir. İçinde bulunulan andan uzaklaşma durumu, bilinçli farkındalığı azaltır ve çoğu kez insanların kendilerini daha az mutlu hissetmelerine sebebiyet verir. Dolaşan zihin ile ilgili yapılan son çalışmalar genellikle okuma kalitesi, sürüş performansı, çalışma belleği yetenekleri ve ruh hali değişimlerine odaklanmıştır. Çalışmaların çoğunda; okuma hızının azalması, çarpma veya kaza ile sonuçlanabilen kötü sürüş deneyimleri, çalışma belleğinin performansının düşmesi ve daha az mutlu hissetme gibi olumsuz sonuçlar bulunmuştur. Örneğin, 80'in üzerinde ülkeden 250.000 kişi Killingsworth ve Gilbert’in araştırmasını yürütmek için yapılan bir akıllı telefon uygulaması yardımıyla analiz edilmiştir. Sıklıkla dolaşan zihin sendromu yaşayan kişilerin ya mutsuz ya da mutsuzluğa eğilimli olduğu sonucu, daha önce bu alanda yapılan çalışmaları adeta onaylar niteliktedir. Olumsuz taraflarının yanı sıra, bu zihin durumunun iyi yönleri olduğunu gösteren araştırmalar da vardır. Bazı bilim adamları, dolaşan zihnin eleştirel düşünceyi artırabileceği ve yaratıcı problem çözme yeteneklerini geliştirebileceğini tespit etmişlerdir. Öyle ki, bu çalışmalar çoğu sanatçının genellikle dolaşan zihinlerinin yardımıyla başarılı hale geldiklerini belirtmektedir. Odaklanmayı ve eleştirel düşünmeyi gerektiren bir başka alan da şüphesiz finansal kararlardır. İnsanlar geçmiş deneyimlerinden faydalanarak daha ümit vaad eden bir gelecek inşa etmeye çalışırlar. Bu çalışmada dolaşan zihnin para yönetimi ve risk toleransı üzerindeki yordama gücü, geleceğin yatırımcıları olarak kabul edilen finans öğrencileri üzerinde incelenmiştir. Sonuçlar, dolaşan zihnin katılımcıların risk toleransı (β = -. 55, p <.001) ve para yönetimini (β = -. 15, p <.05) olumsuz etkilediğini göstermektedir. Dolaşan zihin, risk toleransı varyansının % 31'i ve para yönetimi varyansının ise % 2'sini açıklamıştır.

Keywords

Davranışsal Finans, Dolaşan Zihin, Risk Toleransı, Yatırım Kararları

References

• Aydın, Üzeyir, and Büşra Ağan. 2016. “The Impact Of Non-Rational Decisions On Financial Investment Preferences: An Application within the Framework of Behavioral Finance.” International Journal of Economic & Social Research 12: 95-112.
• Franklin, Michael S., Jonathan Smallwood, and Jonathan W. Schooler. 2011. “Catching the Mind in Flight: Using Behavioral Indices to Detect Mindless Reading In Real Time.” Psychonomic Bulletin & Review 18: 992–997.
• Günay-Aksoy, Şennur. 2019. “Aşırı Zihinsel Gezinme Fenomenin Erişkin Dikkat Eksikliği, Hiperaktivite Bozukluğu ve Bipolar Bozukluk Olgularında İncelenmesi ve Karşılaştırılması.” PhD. diss., İstanbul Arel Üniversitesi.
• Güvenç, Hülya. 2016. “Lise Öğrencileri İçin Finansal Okuryazarlık Ölçeği Geliştirme Çalışması.” Abant İzzet Baysal Üniversitesi Eğitim Fakültesi Dergisi 16, no. 3: 847-863.
• Hu, Nantu, Sheng He, and Baihua Xu. 2012. “Different Efficiencies of Attentional Orienting in Different Wandering Minds.” Consciousness and Cognition 21: 139 –148.
• Kahneman, Daniel, and Amos Tversky. 1979. “Prospect Theory: An Analysis of Decision under Risk.” Econometrica 47, no. 2: 263-292.
• Killingsworth, Matthew A., and Daniel T. Gilbert. 2010. “A Wandering Mind is an Unhappy Mind.” Science 330: 932.
• Kübilay, Bilgehan. 2015. “Yatırım Psikolojisi Açısından Yatırımcı Önyargıları, Finansal Risk Toleranse ve Finansal Kişilik: Bireysel Yatırımcılar Üzerine Bir Alan Araştırması.” PhD. diss., Muğla Sıtkı Koçman Üniversitesi.
• Lucarelli, Caterina, and Gianni Brighetti. 2011. Risk Tolerance in Financial Decision Making, London: Palgrave McMillan.
• McVay, Jennifer C., and Michael J. Kane. 2009. “Conducting the Train of Thought: Working Memory Capacity, Goal Neglect, and Mind Wandering in an Executive-Control Task.” Journal of Experimental Psychology: Learning, Memory, and Cognition 35: 196 –204.
• McVay, Jennifer C., and Michael J. Kane. 2012. “Why Does Working Memory Capacity Predict Variation in Reading Comprehension? On the Influence of Mind Wandering and Executive Attention.” Journal of Experimental Psychology: General 141: 302–320.
• Mrazek, Michael, Jonathan Smallwood, Michael S. Franklin, Jason M. Chin, Benjamin Baird, and Jonathan W. Schooler. 2012. “The Role of Mind-Wandering in Measurements of General Aptitude.” Journal of Experimental Psychology: General 141, no. 4: 788–798.
• Mooneyham, Benjamin W., and Jonathan W. Schooler. 2013. “The costs and benefits of mind wandering: A review.” Canadian Journal of Experimental Psychology 67: 11–18.
• Reichle, Erik D., Andrew E. Reineberg, and Jonathan W. Schooler. 2010. “Eye Movements During Mindless Reading.” Psychological Science 21: 1300 –1310.
• Riby, Leigh Martin, Jonathan W. Smallwood, and Valerie P. Gunn. 2008. “Mind Wandering and Retrieval from Episodic Memory: A Pilot Event-Related Potential Study.” Psychological Reports 102: 805– 818.
• Risko, Evan F., Nicola Anderson, Amara Sarwal, Megan Engelhardt, and Alan Kingstone. 2012. “Everyday Attention: Variation in Mind Wandering and Memory in a Lecture.” Applied Cognitive Psychology 26: 234 –242.
• Ritter, Jay R. 2003. “Behavioral Finance.” Pacific-Basin Finance Journal 11: 429-437.
• Schad, Daniel J., Antje Nuthmann, and Ralf Engbert. 2012. “Your Mind Wanders Weakly, Your Mind Wanders Deeply: Objective Measures Reveal Mindless Reading at Different Levels.” Cognition 125: 179 –194.
• Schooler, Jonathan W., Jonathan Smallwood, Kalina Christoff, Todd C. Handy, Erik D. Reichle, and Michael A. Sayette. 2011. “Meta-Awareness, Perceptual Decoupling and the Wandering Mind.” Trends in Cognitive Sciences 15, no. 7: 319 – 326.
• Smallwood, Jonathan, Simona F. Baracaia, Michelle Lowe, and Marc Obonsawin. 2003. “Task Unrelated Thought whilst Encoding Information.” Consciousness and Cognition 12: 452– 484.
• Smallwood, Jonathan, and Jonathan W. Schooler. 2006. “The Restless Mind.” Psychological Bulletin 132: 946 –958.
• Smallwood, Jonathan,, Rory C. O’Connor, Megan V. Sudbery, and Marc Obonsawin. 2007. “Mind-wandering and Dysphoria, Cognition and Emotion 21: 816 – 842.
• Smallwood, Jonathan, Merrill McSpadden, and Jonathan W. Schooler. 2008. “When Attention Matters: The Curious Incident of the Wandering Mind.” Memory & Cognition 36: 1144 –1150.
• Smallwood, Jonathan, Annamay Fitzgerald, Lynden K. Miles, and Louise H. Phillips. 2009. “Shifting Moods, Wandering Minds: Negative Moods Lead the Mind to Wander.” Emotion 9: 271–276.
• Smallwood, Jonathan, and Rory C. O’Connor. 2011. “Imprisoned by the Past: Unhappy Moods Lead to a Retrospective Bias to Mind Wandering.” Cognition and Emotion 25: 1481–1490.
• Smallwood, Jonathan, and Jonathan W. Schooler. 2015. “The Science of Mind Wandering: Empirically Navigating the Stream of Consciousness.” Annual Review of Psychology 66: 487–518.
• Stawarczyk, David, Steve Majerus, Michalina Maj, Martial Van der Linden, and Arnaud D’Argembeau. 2011. “Mind-Wandering: Phenomenology and Function as Assessed with a Novel Experience Sampling Method.” Acta Psychologica 136: 370 –381.
• Taner, Berna, and G. Cenk Akkaya. 2005. “Yatırımcı Psikolojisi ve Davranışsal Finans Yaklaşımı.” Muhasebe ve Finansman Dergisi 27: 47-54.
• Teasdale, John D., Barbara H. Dritschel, Melanie J. Taylor, Linda Proctor, Charlotte A. Lloyd, Ian Nimmo-Smith, and Alan D. Baddeley. 1995. “Stimulus-Independent Thought Depends on Central Executive Resources.” Memory & Cognition 23: 551–559.
• Tufan, Cenk, and Reyhan Sarıçiçek. 2013. “Behavioral Finance Models, Efficient Market Hypothesis and an Assessment of its Anomalies.” Trakya Üniversitesi Sosyal Bilimler Dergisi 2, no. 15: 159-182.
• Unsworth, Nash, and Brittany D. McMillan. 2012. “Mind Wandering and Reading Comprehension: Examining the Roles of Working Memory Capacity, Interest, Motivation, and Topic Experience.” Journal of Experimental Psychology: Learning, Memory, and Cognition 39, no. 3: 832–842.
• Uzzaman, Sarah, and Steve Joordens. 2011. “The Eyes Know What You are Thinking: Eye Movements as an Objective Measure of Mind Wandering.” Consciousness and Cognition 20: 1882–1886.
• Yanko, Matthew R., and Thomas M. Spalek. 2014. “Driving with the wandering mind the effect that mind-wandering has on driving performance.” Human Factors: The Journal of the Human Factors and Ergonomics 56: 260–269.