Heuristics and the Performance of Financial Institutions in South Sudan

Abstract

We study the relationship between heuristics and the performance of financial institutions in South Sudan using measures of institutional performance and heuristics. Using the ARDL model, we establish that heuristics indicators such as anchoring, availability, and halo effect negatively and significantly affect the performance of financial institutions while disaster neglect and overconfidence seem not to significantly exactly influence the performance of financial institutions in South Sudan. On the other hand, confirmation seems to significantly affect the performance of financial institutions in the country.