16. When required to estimate a value with unknown magnitude, people generally begin by envisioning some initial, default number (an anchor) because they are generally better at estimating absolute comparisons rather than relative figures. 17. According to Kahneman, we tend to come to conclusions about why things happen after reasoning through it. On the whole, people have a bias towards positivity,5 an effect that is referred to as optimism bias, or sometimes as the Pollyanna principle." 18. The prevalence of self-attribution bias of management in annual reports provides an additional source of information for the regulators to identify the banks at risks and take preventive measures to avoid the expected cost of failure. It can also help investors, and gives analysts a better tool for a comprehensive analysis of the profitability of prospective investments. 19. Self-attribution bias refers to the tendency of individuals to ascribe their successes to innate aspects, such as talent or foresight, while more often blaming failures on outside influences, such as bad luck. Research has shown that if people intend to succeed, then outcomes in accordance with that intentionsuccesseswill be perceived as the result of people acting to achieve what they've originally intended. 20. Emotional and cognitive biases are feeling and thinking traits, habits, and styles that are by definition not adaptive. They give investors a false picture of reality, and skew them into predictable, inappropriate ways of action. They usually result in achieving higher returns on investments. 21. Self-control is the theory that when people predict a correct outcome, they wrongly believe that they knew it all along". 16. When required to estimate a value with unknown magnitude, people generally begin by envisioning some initial, default number (an anchor) because they are generally better at estimating absolute comparisons rather than relative figures. 17. According to Kahneman, we tend to come to conclusions about why things happen after reasoning through it. On the whole, people have a bias towards positivity,5 an effect that is referred to as optimism bias, or sometimes as the Pollyanna principle." 18. The prevalence of self-attribution bias of management in annual reports provides an additional source of information for the regulators to identify the banks at risks and take preventive measures to avoid the expected cost of failure. It can also help investors, and gives analysts a better tool for a comprehensive analysis of the profitability of prospective investments. 19. Self-attribution bias refers to the tendency of individuals to ascribe their successes to innate aspects, such as talent or foresight, while more often blaming failures on outside influences, such as bad luck. Research has shown that if people intend to succeed, then outcomes in accordance with that intentionsuccesseswill be perceived as the result of people acting to achieve what they've originally intended. 20. Emotional and cognitive biases are feeling and thinking traits, habits, and styles that are by definition not adaptive. They give investors a false picture of reality, and skew them into predictable, inappropriate ways of action. They usually result in achieving higher returns on investments. 21. Self-control is the theory that when people predict a correct outcome, they wrongly believe that they knew it all along