Business student finds decision-aids can lower impact of investment-related biases

[img_inline align=”right” src=”http://padnws01.mcmaster.ca/images/bhandari_gokul.jpg” caption=”Gokul Bhandari”]Gokul Bhandari, a PhD student with McMaster's Michael G. DeGroote School of Business, is the first recipient of the Canadian Securities Institute Research Foundation (CSIRF) Scholarship. He has been awarded a $25,000 scholarship based on his dissertation.

Bhandari's doctoral study, entitled Incorporating Cognitive Support in Investment DSS, attempts to combine recent findings from behavioural finance into information systems research.

His study indicates that even individuals who are educated and have obtained significant investment experience are susceptible to several cognitive biases; they make flawed investment decisions. However, he demonstrates that simple tools like feedback and graphical aids can significantly lower the impact of investment-related biases and suggests a blueprint for developing a computerized system for making sound investment decisions.

“Receiving this award is definitely a great honour for me,” Bhandari says. “But more importantly, it is a testament of leadership of the DeGroote School of Business in conducting innovative and high quality research. Without the support and guidance of my supervisor Dr. Khaled Hassanein and thesis committee members Dr. Norm Archer and Dr. Richard Deaves, this research would not have been possible. I am truly proud of being a Mac student.”

Bhandari, who started his PhD in 2001, is now carrying out his post-doctoral studies at McMaster. He hopes his work will serve as a bridge between academics and practitioners, especially in the area of investment decision-making.

“This will enable me to extend my doctoral study and come closer to realizing the vision that I proposed in my study,” he says.

Partnering with Canadian universities and students, the CSIRF creates scholarship awards for a select group of students and academics who have dedicated their research to aspects of its capital markets that are important to investors.

The CSIRF, formerly known as The Investor Learning Centre, is a charitable organization, established in 1996. The foundations main objectives include supporting and encouraging research that is relevant to capital markets and Canadian investors. CSI Research Foundation seeks to achieve its objective through a research-focused program that sponsors and showcases useful business research by partnering with Canadian universities and students.