Using a Foreign Tongue Can Clear Your Mind; Considering and discussing an emotionally freighted problem in a foreign tongue may help you make a more rational choice, research shows

Foreign Tongue, Clearer Mind
DANIEL AKST
March 21, 2014 7:27 p.m. ET

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Facing an emotionally freighted decision? If you speak a second language, you’re in luck. Considering and discussing the problem in a foreign tongue may help you decide more rationally.
In a new paper, scientists in Barcelona and Jerusalem report on a series of experiments in which bilingual volunteers made more rational decisions when using their second language. Participants in each experiment were split into two groups: One was given problems in their native language, and the other was presented with the same problems in their second language.Using the second language seemed to produce more rationality. For example, volunteers were presented with a hypothetical epidemic and asked to choose between a safe medicine guaranteed to spare some victims and a risky one that might save many more—or none at all. Half the volunteers had the choices presented in terms of lives saved, while the other half was offered the same choices framed in terms of how many would die. In combining the results with a second problem involving money, the scientists found that, among native language participants, the change in framing led to a 26% difference in choices between safe and risky. But among second language volunteers, there was only an 11% gap—a result closer to perfectly rational, since the odds of success among the choices weren’t changed by how they were framed.
That’s consistent with a celebrated 2012 study on this topic. But the new paper goes further, showing that volunteers presented with logical problems needing only concentration—and carrying little or no emotional punch—were about equally rational in either language. The “foreign language effect” didn’t apply.
Why the discrepancy? The emotional resonance of a problem seems to be reduced when we switch to another language. Previous research has found that discussing embarrassing subjects is easier in a foreign tongue, and skin conductance (a measure of sweat, and thus stress) is reduced when bilingual volunteers use emotional terms in their second language versus their first.
” ‘Piensa’ Twice: On the Foreign Language Effect in Decision Making,” Albert Costa, Alice Foucart, Inbal Arnon, Melina Aparici and Jose Apesteguia, Cognition (February)

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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