The Financial Psychology of Players, Services, and Products

2017 ◽  
Author(s):  
Victor Ricciardi
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Perceived Risk ◽  
Decision Making Process ◽  
Expected Return ◽  
Financial Decisions ◽  
Familiarity Bias ◽  
Accounting Control ◽  
Investment Service

This chapter provides an overview of the emerging cognitive and emotional themes of behavioral finance that influence individual behavior. The behavioral finance perspective of risk incorporates both qualitative (subjective) and quantitative (objective) aspects of the decision-making process. An emerging subject of research interest and investigation in behavioral finance is the inverse (negative) relation between perceived risk and expected return (perceived return). The chapter highlights important topics such as representativeness, framing, anchoring, mental accounting, control issues, familiarity bias, trust, worry, and regret theory. It also examines the role of negative affective reactions on financial decisions. A host of biases that depend on specific aspects of the financial product or investment service influence the judgment and decision-making process of most financial players.

scholarly journals Behavioral Biases as An Effective Factor for the Firm Financial Decision-Making: A Literature Review

2016 ◽  
Vol 10 (2) ◽  
pp. 2103-2115
Author(s):  
Bilgehan TEKIN
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Point Of View ◽  
Decision Making Process ◽  
International Studies ◽  
Negative Effects ◽  
Financial Decisions ◽  
Behavioral Biases ◽  
Effective Decision Making ◽  
The Impact

Decision-making process is a multi-faceted and complex process. Decision making can be defined like a process of choosing from among a number of alternatives. It will not contribute enough to be fully understood and to effective decision making to be addressed only from the rational point of view. Behavioral finance is an integral part of the decision-making process. Individuals can improve their performance by recognizing the biases which discussed in the framework of behavioral finance. Understanding the possible negative effects of biases allows to the individuals to make better choices and they can avoid repeating the expensive errors in future. Result of investigations of behavioral biases on decision-makers in the firms, managerial bias issue has been raised. The studies show the effect of managerial biases on many financial decisions in firms. This paper investigated the role of biases such as overconfidence, loss aversion, optimism, anchoring, narrow framing, self-serving attribution, disposition effect etc. on financial decisions such as investing, financing, equity market, capital structure etc. This study review of 30 international studies related with behavioral corporate finance and behavioral biases that affect financial decisions in firms. The studies were gleaned from Web of Science and Google Scholar. The main contribution of this study to the literature is this study brings out the impact of behavioral biases on financial decisions in the firms by summarizing the previous studies. In this sense, this work also has an assembly quality. Therefore, this is also intended with this study that to transfer the knowledge and intellectual formation about the impact of behavioral bias on the financial decisions. In this paper, most important behavioral biases in the behavioral finance literature will be addressed.

scholarly journals Irrationality of managers’ behavior in corporate financial decision making

2021 ◽  
Vol 9 (5) ◽  
pp. 51-56
Author(s):  
Marcin Banaszek
Keyword(s):  
Decision Making ◽  
Corporate Finance ◽  
Behavioral Finance ◽  
Decision Making Process ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Irrational Behavior ◽  
Behavioral Aspects ◽  
Financial Decision ◽  
Behavioral Corporate Finance

Purpose of the study: The subject of consideration is the behavioral aspects of corporate finance. The consideration is devoted to the basic inclinations of psychological nature characteristic of managers. The main purpose of the article is to characterize the irrational behavior of managers in the process of financial decision-making in the enterprise. Methodology: The paper was prepared with the use the critical literature review method mainly in the field of behavioral corporate finance. Main findings: The discussion shows that behavioral corporate finance focuses mainly on cognitive and motivational-emotional processes in managers, which may occur in various decision areas within which managers make choices. There are three groups of psychological phenomena and inclinations that are characteristic of managers who manage business entities, namely predispositions to systematic inference errors, heuristics, and the presentation effect. Application of the study: The presented article refers to the irrational behavior of managers in the process of making financial decisions in the company. It implies reflections in such scientific fields as, among others, economics and finance, management and psychology. The use of the tools of psychology allows analyzing the problems of financial decision-making of managers in the enterprise, noticing in them some deviations from rationality that can affect the efficiency of the enterprise. The content of the article can be useful for managers making financial decisions in an enterprise. Originality/Novelty of the study: Behavioral finance is a young discipline of finance, the scientific output of which in Poland is still small. Behavioral aspects are just beginning to gain importance in the decision-making process, especially the financial one. The tendencies of managers to irrationality in the decision-making process presented in this article allow us to better understand the errors, psychological factors that may cause wrong decisions, which in turn may translate into poorer financial condition of the whole enterprise. The article can inspire further research and inquiry in the field of behavioral finance and contribute to other interesting scientific studies.

scholarly journals Decision Making from the Experience of Orthognathic Surgery Patients: A Grounded Theory Approach

2021 ◽  
pp. 238008442110144
Author(s):  
N.R. Paul ◽  
S.R. Baker ◽  
B.J. Gibson
Keyword(s):  
Decision Making ◽  
Grounded Theory ◽  
Treatment Options ◽  
Study Data ◽  
Primary Objective ◽  
Major Surgery ◽  
Future Research ◽  
Decision Making Process ◽  
Theory Approach

Introduction: Patients’ decisions to undergo major surgery such as orthognathic treatment are not just about how the decision is made but what influences the decision. Objectives: The primary objective of the study was to identify the key processes involved in patients’ experience of decision making for orthognathic treatment. Methods: This study reports some of the findings of a larger grounded theory study. Data were collected through face-to-face interviews of patients who were seen for orthognathic treatment at a teaching hospital in the United Kingdom. Twenty-two participants were recruited (age range 18–66 y), of whom 12 (male = 2, female = 10) were 6 to 8 wk postsurgery, 6 (male = 2, female = 4) were in the decision-making stage, and 4 (male = 0, female = 4) were 1 to 2 y postsurgery. Additional data were also collected from online blogs and forums on jaw surgery. The data analysis stages of grounded theory methodology were undertaken, including open and selective coding. Results: The study identified the central role of dental care professionals (DCPs) in several underlying processes associated with decision making, including legitimating, mediating, scheduling, projecting, and supporting patients’ decisions. Six categories were related to key aspects of decision making. These were awareness about their underlying dentofacial problems and treatment options available, the information available about the treatment, the temporality of when surgery would be undertaken, the motivations and expectation of patients, social support, and fear of the surgery, hospitalization, and potentially disliking their new face. Conclusion: The decision-making process for orthognathic treatment is complex, multifactorial, and heavily influenced by the role of DCPs in patient care. Understanding the magnitude of this role will enable DCPs to more clearly participate in improving patients’ decision-making process. The findings of this study can inform future quantitative studies. Knowledge Transfer Statement: The results of this study can be used both for informing clinical practice around enabling decision making for orthognathic treatment and also for designing future research. The findings can better inform clinicians about the importance of their role in the patients’ decision-making process for orthognathic treatment and the means to improve the patient experience. It is suggested that further research could be conducted to measure some of the key constructs identified within our grounded theory and assess how these change during the treatment process.

Evolution of EC Institutions and Role of France (1990–2000)

2011 ◽  
pp. 58-70
Author(s):  
P. Timofeev
Keyword(s):  
Decision Making ◽  
Decision Making Process ◽  
The Eu

The gradual enlargement of the EEC has necessitated an adaptation of European supranational structures established in the 1950-1970s to the needs of the time. Under these circumstances one of the key priorities of France's participation in the EU is he struggle for preserving her influence on the EU decision-making process. The article is devoted to the interaction of France with its partners in the EU institutions. This implies not only the implementation of its own interests, but also the search for compromise more or less satisfactory to all participants.

The role of a shared decision-making process in paediatric epilepsy surgery

2021 ◽  
Vol 429 ◽  
pp. 119162
Author(s):  
Michelle Gratton ◽  
Bonnie Wooten ◽  
Sandrine Deribaupierre ◽  
Andrea Andrade
Keyword(s):  
Decision Making ◽  
Shared Decision Making ◽  
Epilepsy Surgery ◽  
Decision Making Process ◽  
Shared Decision ◽  
Paediatric Epilepsy

Sharing is caring: the role of voter-candidate similarities in intra-party electoral competition

2018 ◽  
Vol 11 (1) ◽  
pp. 75-89 ◽  
Author(s):  
Patrick F. A. van Erkel
Keyword(s):  
Decision Making ◽  
Electoral Competition ◽  
Decision Making Process ◽  
Supply Side ◽  
Voting Behaviour ◽  
Party Leaders ◽  
Presidential Candidates ◽  
Underrepresented Groups ◽  
Candidate Characteristics

AbstractPrevious studies have found similarities with presidential candidates or party leaders to be an important factor in explaining voting behaviour. However, with the exception of gender, few studies have structurally studied voter-candidate similarities in intra-party electoral competition. This study investigates the Belgian case and argues that voter-candidate similarities play a role in the decision-making process of citizens when casting preferential votes. Moreover, it investigates whether underrepresented groups, and especially women, are more guided by these voter-candidate similarities than overrepresented groups. To achieve this aim voter and candidate characteristics are modelled simultaneously. This enables an investigation of the decision-making process of voters while taking into account structural inequalities at the supply side. The results demonstrate that citizens are indeed more likely to cast preferential votes for candidates similar to themselves and that these effects are stronger for underrepresented groups. Hence, preferential voting could ultimately pave the way for better descriptive representation.

scholarly journals Wind Power Deployment: The Role of Public Participation in the Decision-Making Process in Ontario, Canada

2021 ◽  
Author(s):  
Anahita A. Jami ◽  
Philip R. Walsh
Keyword(s):  
Decision Making ◽  
Renewable Energy ◽  
Public Participation ◽  
Wind Power ◽  
Knowledge Broker ◽  
Decision Making Process ◽  
Energy Investment ◽  
The Public ◽  
Public Opposition

A wider use of renewable energy is emerging as a viable solution to meet the increasing demand for global energy while contributing to the reduction of greenhouse gas emissions. However, current literature on renewable energy, particularly on wind power, highlights the social barriers and public opposition to renewable energy investment. One solution to overcome the public opposition, which is recommended by scholars, is to deploy a collaborative approach. Relatively little research has specifically focused on the role of effective communication and the use of a knowledge-broker in collaborative decision-making. This study attempts to fill this gap through the proposition of a participatory framework that highlights the role of the knowledge-broker in a wind project decision-making process. In this paper, five illustrative wind projects in Ontario are used to highlight the current situation with public participation and to address how the proposed framework could have improved the process. Based on the recommended collaborative framework, perception must shift from the dominant view of the public as “a risk to be managed” towards “a resource that can be tapped”. The developers need to improve sharing what they know and foster co-learning around questions and concerns.

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