can be better off using two or more managers when managerial anchoring can lead to significant cost increases. This paper … anchoring costs if managers anchor in different directions. It is also shown that firms cannot completely eliminate the impact … of anchoring even if they hire an infinite number of managers. Firms should consider hiring additional managers in …

This article investigates the impact of the observation that managers can use cash to defer bankruptcy on default risk … risk depends on two opposing channels. While cash provides managers with a buffer against bankruptcy during difficult times … two channels. As managers' propensity for excess cash holdings depends on this total impact, the model explains observed …