PurposeIn order to better understand how heuristics are used in practice, the authors explore what type of heuristics is used in the managerial domain of financial advisors to small and medium-sized enterprises (SMEs) and what influences the shaping of these heuristics. In doing so, the authors detect possible fast-and-frugal heuristics in day-to-day decision-making of independent financial advisers who help owners of SMEs to acquire capital (e.g. loans, factoring, leasing and equity).Design/methodology/approachThe authors inductively assessed the work of financial advisers of SMEs. Based on group discussions, the authors drew up a semi-structured interview-protocol with descriptive questions about how financial advisers come to a deal for their clients. The interviews of 19 professionals were analysed by relating them to the theory of fast-and-frugal heuristics.FindingsWithin their decision-making, advisers estimate the likelihood of acceptance by a few financial providers they know well in their personal network with a strong bias towards traditional banking products, although there are a large number of alternatives on the Dutch market. “Less is more” seems to be a relevant principle when defined as satisficing. Heuristics help advisers to deal with behavioural and economic limitations. Also, the authors have found that client interaction, previous working experience and the company the adviser is working for influences the shaping of the simple rules the adviser is using.Research limitations/implicationsThe study shows how difficult it is to understand the ecological rationality of a certain group of professionals and to understand the “less is more” principle. Financial advisers to SMEs use cognitive shortcuts and simple rules to advise SME-owners, based on previous experiences, but it is difficult to determine whether that leads to the same or even better solutions for them and their clients than using probability theory and financial optimisation models. Within heuristics, satisficing seems to be a dominant mechanism. Here, heuristics help advisers in recognising possibilities by searching for similarities between a current financing case and previous experiences. The data suggests that if “less is more” is defined as satisficing for one or more stakeholders involved, the principle dominates the decision making of financial advisers of SME's.Practical implicationsThe authors suggest the relevance of a behavioural approach to finance by assessing the day-to-day decisions of financial advisers of SMEs. Also, the authors suggest that financial advisers are guided by previous experiences, and they do not fully assess a wide range of options in their work but need shortcuts to fulfil the needs of their clients.Originality/valueThe study comes close to day-to-day decision-making in finance by assessing how professionals make decisions. The authors try to understand types of heuristics in relation with “ecological rationality” and the less is more principle. The authors assess financial advisers of SME-companies, a group that has gotten little research attention until now. The influence of client interaction and of the company the adviser is working for is remarkable in the shaping of the advisers' simple rules.
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Active learning has become an increasingly popular method for screening large amounts of data in systematic reviews and meta-analyses. The active learning process continually improves its predictions on the remaining unlabeled records, with the goal of identifying all relevant records as early as possible. However, determining the optimal point at which to stop the active learning process is a challenge. The cost of additional labeling of records by the reviewer must be balanced against the cost of erroneous exclusions. This paper introduces the SAFE procedure, a practical and conservative set of stopping heuristics that offers a clear guideline for determining when to end the active learning process in screening software like ASReview. The eclectic mix of stopping heuristics helps to minimize the risk of missing relevant papers in the screening process. The proposed stopping heuristic balances the costs of continued screening with the risk of missing relevant records, providing a practical solution for reviewers to make informed decisions on when to stop screening. Although active learning can significantly enhance the quality and efficiency of screening, this method may be more applicable to certain types of datasets and problems. Ultimately, the decision to stop the active learning process depends on careful consideration of the trade-off between the costs of additional record labeling against the potential errors of the current model for the specific dataset and context.
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A primary teacher needs mathematical problem solving ability. That is why Dutch student teachers have to show this ability in a nationwide mathematics test that contains many non-routine problems. Most student teachers prepare for this test by working on their own solving test-like problems. To what extent does these individual problem solving activities really contribute to their mathematical problem solving ability? Developing mathematical problem solving ability requires reflective mathematical behaviour. Student teachers need to mathematize and generalize problems and problem approaches, and evaluate heuristics and problem solving processes. This demands self-confidence, motivation, cognition and metacognition. To what extent do student teachers show reflective behaviour during mathematical self-study and how can we explain their study behaviour? In this study 97 student teachers from seven different teacher education institutes worked on ten non-routine problems. They were motivated because the test-like problems gave them an impression of the test and enabled them to investigate whether they were already prepared well enough. This study also shows that student teachers preparing for the test were not focused on developing their mathematical problem solving ability. They did not know that this was the goal to strive for and how to aim for it. They lacked self-confidence and knowledge to mathematize problems and problem approaches, and to evaluate the problem solving process. These results indicate that student teachers do hardly develop their mathematical problem solving ability in self-study situations. This leaves a question for future research: What do student teachers need to improve their mathematical self-study behaviour? EAPRIL Proceedings, November 29 – December 1, 2017, Hämeenlinna, Finland
DOCUMENT
Veel mkb ondernemers maken gebruik van een financieel adviseur bij belangrijke financiële beslissingen. Momenteel is er echter weinig inzicht in achterliggende psychosociale factoren die het financiële advies van financieel adviseurs beïnvloeden. Op basis van eerder onderzoek (Kahneman, 2013) blijkt dat mensen zich laten leiden, als het gaat om financiële beslissingen, door een keur aan psychologische ‘denkvalkuilen’ (‘heuristics’ en biases’). Verondersteld wordt dat rol van de adviseur zou moeten zijn om specialistisch en objectief advies te geven, echter de denkvalkuilen en vooroordelen van de cliënt ‘klinken ook door’ in het advies van hun financieel adviseurs. Zo worden irrationele vormen van risicoperceptie en irreële verwachtingen van cliënten ten aanzien van de toekomst meegenomen in de adviezen van adviseurs; “de klant is immers koning.” Eerder onderzoek suggereert dat financieel adviseurs de verwachtingen en ideeën van hun cliënten alleen maar bevestigen en niet, indien nodig, bij irreële of ‘foute’ verwachtingen of aannames, corrigeren. De beweegreden van de adviseur hiervoor zijn dat meegaan met de ideeën van cliënten resulteert in minder verantwoordelijkheid voor de adviseur bij negatieve uitkomsten of resultaten; “dit is immers wat de cliënt zelf wil.” Terwijl veel input en advies het tegenovergestelde bewerkstelligt, “de cliënt vaart blind op de adviezen van zijn adviseur”, wat de cliënt-adviseur relatie in gevaar brengt bij negatieve resultaten. Het gevolg is een suboptimaal en in sommige gevallen slecht financieel advies. Dit onderzoek heeft tot doel de voorwaarden van een opener, beter afgewogen en objectiever financieel advies te ontdekken voor mkb-ondernemers, De centrale vraag is: Hoe komt een financieel adviseur tot een financieel advies voor mkb bedrijven? Deze vraag zal beantwoord worden de een survey bij de twee grootste franchise financiële advieskantoren (+/- 2500 leden), wat een representatieve steekproef is voor de financieel adviseurs in het mkb.
