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Manager’s Psychology, Rationality and Policy Decisions in Tunisian Firms
Baccar, Amel - 2012
a strong evidence on the effect of managerial psychology on corporate investment decision's rationality. Using models …We present evidence consistent with theories that psychological biases affect rationality decision of managers. We find … disposition effect to explain their impact on corporate investment decision's rationality. Corporate governance contributes to the …
Persistent link: https://www.econbiz.de/10013102161
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Prospect theory in the financial decision-making process : an empirical study of two Argentine universities
Guevara Cortés, Rogelio Ladrón de; Tolosa, Leticia Eva; … - In: Journal of economics, finance & administrative science 28 (2023) 55, pp. 116-133
Purpose - This paper aims to provide empirical evidence for using the prospect theory (PT) basic assumptions in the Argentine context. Mainly, this study analysed the financial decision-making process in students of the economic-administrative academic area of two universities, one public and...
Persistent link: https://www.econbiz.de/10014339272
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The consumption-investment decision of a prospect theory household : a two-period model
Fortin, Ines; Hlouskova, Jaroslava; Tsigaris, … - 2016
This study extends the literature on portfolio choice under prospect theory preferences by introducing a two-period life cycle model, where the household decides on optimal consumption and investment in a portfolio with one risk-free and one risky asset. The optimal solution depends primarily on...
Persistent link: https://www.econbiz.de/10011483180
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A model of reference-dependent belief updating
Maier, Johannes K.; König, Clemens - 2016
We propose a model of instrumental belief choice under loss aversion. When new information arrives, an agent is prompted to abandon her prior. However, potential posteriors may induce her to take actions that generate a lower utility in some states than actions induced by her prior. These losses...
Persistent link: https://www.econbiz.de/10011557745
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Decisions, Stocks, and Time Diversification
McLeavey, Dennis W. - 2013
This paper presents three definitions of time diversification and analyzes their implications for investment horizons. Using decision quality criteria and methodology, we question standard advice. In analyzing time diversification with a minimum of assumptions, we answer two main questions: how...
Persistent link: https://www.econbiz.de/10013089732
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Decision Neuroscience and Aging
Samanez-Larkin, Gregory R. - 2015
Until recently we have known little about how core decision processes change with age and how aging may impact the structure and function of corresponding ventromedial frontostriatal neural systems (Samanez-Larkin & Knutson, 2014). The chapter begins by briefly orienting the reader to...
Persistent link: https://www.econbiz.de/10013015918
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Financial Literacy and Intra-Household Decision Making : Evidence from Rwanda
Grohmann, Antonia - 2018
Despite considerable policy efforts, women continue to be underrepresented in positions of power and decision making. As an important aspect of women empowerment, we examine women's participation in intrahousehold financial decision making and how this is affected by financial literacy. Using...
Persistent link: https://www.econbiz.de/10012926242
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Anchoring on the Acquisition Premium Decisions of Others
Malhotra, Shavin - 2017
Anchoring is a ubiquitous heuristic by which decision makers heavily rely on a piece of information (anchor) that appears prior to a decision. Yet, we know little about its role in strategic decisions. This study considers its influence on acquisition premiums by examining whether a focal...
Persistent link: https://www.econbiz.de/10012955670
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Peer Effects in Financial Decision-Making
Lieber, Ethan M.J. - 2019
Peer effects might play an important role in complex financial decisions because many consumers lack experience with them and the costs of thinking through such decisions can be very high. We study peer effects in retirement savings, life insurance purchase, and two charitable giving programs in...
Persistent link: https://www.econbiz.de/10012899040
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Decision Making, Belief and Behavioural Biases
Gupta, Chabi - 2019
Behavioural finance theories explain "why" individuals exhibit behaviours that do not maximize expected utility. Behavioural finance highlights inefficiencies, such as under- or over-reactions to information, as causes of market trends and, in extreme cases, of bubbles and crashes. Such...
Persistent link: https://www.econbiz.de/10012866483