News overview

Psychological influences in bankruptcy cases and the need for big data

Professor Jan Adriaanse and PhD researcher Niek Strohmaier were invited to the Amsterdam Bankruptcy Court, on 26 September 2016, to discuss their latest insights on psychological influences in bankruptcy cases amongst a group of sixty Amsterdam-based bankruptcy trustees and judges.

Hindsight bias

During the session the first results of an empirical study were presented, showing that the phenomenon of hindsight bias influences the decision-making of trustees and judges. Moreover, individual differences, such as the degree to which one believes in 'free will', seem to influence the impact that hindsight bias has on trustees' behavior and decision-making (e.g., regarding directors’ liability).

Debiasing bankruptcy inveestigations

The researchers then presented a conceptual framework for debiasing bankruptcy investigations based on scientific insights from so-called 'disaster studies' and 'big data'.