Buy, Sell, Or…Hold that Thought: The Impact of Task Interruption on Investor Decision-Making

Basoglu, K.A. and J. H. Long. 2023. Buy, Sell, or…Hold That Thought: The Impact of Task Interruption on Investor Decision-Making. Behavioral Research in Accounting, 35 (2):13-36.

Posted: 7 Dec 2023 Last revised: 26 Jan 2024

See all articles by Kamile Basoglu

Kamile Basoglu

University of Delaware - Accounting & MIS

James H. Long

Auburn University - School of Accountancy

Date Written: May 1, 2023

Abstract

Task interruptions are ubiquitous and can systematically affect decision-making, even when they are nondiagnostic and thus irrelevant. We report the results of an experiment employing experienced investors as participants to solidify the theoretical foundation underpinning the impact of interruption on investor decision-making. We consider the joint effects of interruption and risk/return preferences on experienced investor decision-making, as well as the effectiveness of two theory-driven mitigating strategies. Consistent with the expanded Goal-Based Choice (GBC) Model, but, inconsistent with other theoretical explanations proposed to date, we provide evidence that interruption exacerbates the influence of risk/return preferences on investment decisions and that a mitigating strategy derived from the expanded GBC Model effectively eliminates this effect. Overall, the expanded GBC Model provides the best theoretical explanation for these phenomena, enhancing our understanding of the underlying mechanisms and the generalizability of prior research.

Keywords: task interruption; investor decision-making; experienced investors; expanded Goal-Based Choice Model

JEL Classification: M40, M41

Suggested Citation

Basoglu, Kamile and Long, James H., Buy, Sell, Or…Hold that Thought: The Impact of Task Interruption on Investor Decision-Making (May 1, 2023). Basoglu, K.A. and J. H. Long. 2023. Buy, Sell, or…Hold That Thought: The Impact of Task Interruption on Investor Decision-Making. Behavioral Research in Accounting, 35 (2):13-36., Available at SSRN: https://ssrn.com/abstract=4625967

Kamile Basoglu (Contact Author)

University of Delaware - Accounting & MIS ( email )

Alfred Lerner College of Business and Economics
Newark, DE 19716
United States

James H. Long

Auburn University - School of Accountancy ( email )

301 Lowder Hall
Auburn University, AL 36849
United States
(334) 844-6214 (Phone)

HOME PAGE: http://www.jameshlong.com

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