Irrationality of Investment Funds Managers in the Light of Available Information – Case of Poland

ABSTRACT: The purpose of the paper is related to understanding the preferences and motivations determining the decision making process of investment funds managers on the Polish market. Surveys concerning the investment environment, factors influencing decisions, as well as heuristics and decision traps related to investment funds managers behavior confirm the thesis that they reaction to information appearing on the market, with particular emphasis on messages from the Central Bank of Poland NBP is related to behavioral errors. The research is done on the Polish market, fast developing economy after system transformation, where the investment processes are becoming very important factor of the capital transfers mechanism. The value added of the paper is related to the direct surveys of investment funds managers in the context of the decision they make and heuristics they are affected by.

KEYWORDS: investment funds, managers’ irrationality , behavioral finance, central bank