If a company’s corporate performance forecasting bias is not zero and it continues to over- or under-predict actual … performance, capital investments and employment will deviate from their expected levels. Therefore, forecast bias is a very … important issue for a company’s management. However, few empirical studies exist on corporate performance forecasting bias in …

bias when recalling their startup experiences. We observe that those who fail to develop their startup activity into an … operating business demonstrate substantial hindsight bias concerning the probability of venture formation. In particular, the …

exhibit a local bias, even when we control for family and friends. In addition to the regular crowd, our sample includes angel …-like investors, who invest considerable amounts and exhibit a larger local bias. Well-diversified investors are less likely to suffer … having a local bias. Overall, we find that investors who direct their investments to local firms more often pick start …

entrepreneurial firms. Research has shown that entrepreneur s overconfidence and optimism bias help firm creation, but also contribute … usually focus on a single cognitive bias. Second, as yet no studies have identified a cognitive bias that, unlike … industries, distrust is emerging as an important cognitive bias explaining non-failure in non-routine situations, but …