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Computational Intelligence and Neuroscience
Volume 2017, Article ID 4760930, 9 pages
Research Article

Antiherding in Financial Decision Increases Valuation of Return on Investment: An Event-Related Potential Study

1School of Management, Hefei University of Technology, Hefei, China
2Neuromanagement Lab, Zhejiang University, Hangzhou, China
3School of Management, Zhejiang University, Hangzhou, China
4Business School, Ningbo University, Ningbo, China
5Academy of Neuroeconomics and Neuromanagement at Ningbo University, Ningbo, China
6School of Business Studies, Polytechnic Institute of Viana do Castelo, Viana do Castelo, Portugal

Correspondence should be addressed to Qingguo Ma; nc.ude.ujz@9663ouggniqam

Received 29 November 2016; Accepted 27 April 2017; Published 28 May 2017

Academic Editor: Thomas DeMarse

Copyright © 2017 Cuicui Wang et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


Using event-related potentials, this study investigated how financial herding or antiherding affected the valuation of subsequent outcomes. For each trial, subjects decided whether to buy the stock according to its net money flow information which could be used to reflect the strength of buying power or selling power of the stock. The return on investment (ROI) as feedback included the increase or decrease percentage after subjects’ responses. Results showed that, compared with herding, antiherding induced larger discrepancies of FRN and P300 amplitude between positive ROI and negative ROI, indicating that individuals under antiherding condition had stronger motivation and paid more attention in the evaluation process of ROI. Moreover, only for positive ROI, the amplitudes of FRN and P300 were modulated by two kinds of behaviors. We suggested that individuals making antiherd decisions were more confident with their own ability and choices, which reduced the positive outcome prediction error and gave more mental resources to evaluate positive outcome. However, negative outcomes evoked no different motivational meaning and negative emotion for individuals between herding and antiherding. The study may provide new insights into neurocognitive processes of herding and antiherding in financial market.