Beyond objective knowledge: The moderating role of field dependence–independence cognition in financial decision making

• Shun-Chuan Chang

  Mackay Medical College

• Ying-Chan Tang

  National Chiao Tung University

• Yang-Jung Liu

  National Chiao Tung University

We investigated the effects of objective knowledge and information cues on consumer financial decisions, and examined the moderating effects of field dependence–independence on the decision-making process. Participants were grouped into 2 clusters, that is, field dependent or independent cognition, according to their scores on the Embedded Figures Test (EFT). We then examined how intrinsic objective knowledge and extrinsic information cues were calibrated from an investor’s cognitive ability. Results indicated that field independent participants with higher, vs. lower, scores on the EFT showed considerable superiority in acquiring information and were more risk averse. Participants with greater objective knowledge levels and prior domain expertise were also more assertive and risk prone in financial decision making than those with less objective knowledge and domain experience.

1. Shun-Chuan Chang, Mackay Medical College
   Holistic Education Center
2. Ying-Chan Tang, National Chiao Tung University
   Institute of Business and Management
3. Yang-Jung Liu, National Chiao Tung University
   Institute of Business and Management

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