scholarly journals S trategic decision making in the digital age: expert sentiment and corporate capital allocation

2021 ◽  
Author(s):  
Steffen Nauhaus ◽  
Johannes Luger ◽  
Sebastian Raisch
Keyword(s):  
Decision Making ◽  
Digital Age ◽  
Capital Allocation ◽  
Corporate Capital

scholarly journals Capital allocation and delegation of decision-making authority within firms

2015 ◽  
Vol 115 (3) ◽  
pp. 449-470 ◽  
Author(s):  
John R. Graham ◽  
Campbell R. Harvey ◽  
Manju Puri
Keyword(s):  
Decision Making ◽  
Capital Allocation

Anecdotal Bias in Capital Allocation Depends on Anecdote Similarity

2021 ◽  
Author(s):  
Shir Dekel ◽  
Micah Goldwater ◽  
Dan Lovallo ◽  
Bruce Burns
Keyword(s):  
Decision Making ◽  
Medical Decision Making ◽  
Statistical Data ◽  
Capital Allocation ◽  
Medical Decision ◽  
Target Problem ◽  
Bias Effect ◽  
Business Decision ◽  
Statistical Measures ◽  
Allocation Decisions

Previous research found that anecdotes are more persuasive than statistical data—the anecdotal bias effect. Separate research found that anecdotes that are similar to a target problem are more influential on decision-making than dissimilar anecdotes. Further, previous investigations on anecdotal bias primarily focused on medical decision-making with very little focus on business decision-making. Therefore, we investigated the effect of anecdote similarity on anecdotal bias in capital allocation decisions. Participants were asked to allocate a hypothetical budget between two business projects. One of the projects (the target project) was clearly superior in terms of the provided statistical measures, but some of the participants also saw a description of a project with a conflicting outcome (the anecdotal project). This anecdotal project was always from the same industry as the target project. The anecdote description, however, either contained substantive connections to the target or not. Further, the anecdote conflicted with the statistical measures because it was either successful (positive anecdote) or unsuccessful (negative anecdote). The results showed that participants’ decisions were influenced by anecdotes only when they believed that they were actually relevant to the target project. Further, they still incorporated the statistical measures into their decision. This was found for both positive and negative anecdotes. Further, participants were given information about the way that the anecdotes were sampled that suggested that the statistical information should have been used in all cases. Participants did not use this information in their decisions and still showed an anecdotal bias effect. Therefore, people seem to appropriately use anecdotes based on their relevance, but do not understand the implications of certain statistical concepts.

scholarly journals Women on corporate boards and allocation of capital raised through IPOs

2019 ◽  
Vol 57 (3) ◽  
pp. 547-568 ◽  
Author(s):  
Bazeet Olayemi Badru ◽  
Nurwati A. Ahmad-Zaluki ◽  
Wan Nordin Wan-Hussin
Keyword(s):  
Decision Making ◽  
Governance Structure ◽  
Capital Allocation ◽  
Strategic Decision ◽  
Corporate Boards ◽  
Content Type ◽  
Investment Opportunities ◽  
Women On Corporate Boards ◽  
The Impact ◽  
A Company

Purpose The purpose of this paper is to examine whether the differences in men and women, such as risk aversion in decision making, can influence the amount of capital that the board of directors can allocate for investment opportunities. Design/methodology/approach This study sampled 212 IPOs over the period of 2005–2015 and employed the OLS and the quantile regression techniques to examine the impact of female directors on capital allocation. Findings The results show that women on corporate boards have a positive influence on the amount of capital an IPO company can allocate for investment opportunities. These findings suggest that the investment strategies of women in an emerging financial market, like Malaysia, may differ from women in other financial markets. Practical implications The presence of women on corporate boards plays an important role in board involvement in a company’s strategic decision at the time of the IPO. Therefore, regulators and IPO issuers should pay close attention to the corporate governance structure of a company at the time of an IPO. In addition, investors and other stakeholders of a company may consider women on corporate boards as an important factor in financing and investment decisions. Originality/value Despite several studies that have examined the influence of women on corporate boards on corporate outcomes, globally, the presence of women on corporate boards and their influence on corporate decision-making related to allocation of capital to investment opportunities, have not been fully explored in the IPO literature.

More than money: exploring the role of investment advisors for sustainable investing

2015 ◽  
Vol 1 (1) ◽  
pp. 195-223 ◽  
Author(s):  
Falko Paetzold ◽  
Timo Busch ◽  
Marc Chesney
Keyword(s):  
Decision Making ◽  
Social Responsibility ◽  
Financial Markets ◽  
Ordinary Least Squares ◽  
Capital Allocation ◽  
Future Research ◽  
Financial Return ◽  
Content Type ◽  
Private Investors

Purpose – Investment advisors play a significant role in financial markets, yet the determinants of their behavior have not been explored in detail. The purpose of this paper is to explore the determinants of how actively advisors communicate about sustainable investing with their clients, and differences in the preferences of advisors compared to investors. Design/methodology/approach – Based on a survey with 296 retail and private banking investment advisors, this study employs an ordinary least squares regression model to explore the determinants of advisors activity in communicating about sustainable investing (SI) with their clients, differences in the aspects that matter to advisors and investors, and the role of the complexity of sustainability. Findings – Advisors activity in communicating about SI relates to their expectation of SI regarding financial return, real-world impact, and the fuzziness and trustworthiness of SI. Advisors appear not to be influenced by expected risk and their personal values, which runs against prior research findings and the interest of investors. Research limitations/implications – Future research should assess cultural differences and explore asymmetries between advisors and investors in regard to the role of volatility, values, impact measurement, and complexity. Practical implications – Investment advisors underweighting aspects related to risk and self-transcendent values relative to their clients might limit the suitability of clients ' portfolios, skew capital allocation, and depress the role of SI in financial markets. Generalized to salespeople this behavior might depress the market success of products related to sustainability at large. Social implications – The findings and their generalization indicate that salespeople might systematically deviate from their clients’ interests in regard to social responsibility. Advisors and salespeople in their mediating role might be an important barrier to sustainable development. Originality/value – This is the first quantitative study that explores the decision-making by investment advisors in the context of SI, and as such answers to specific calls in literature to explore the micro-foundations of decision making in regard to SI and social responsibility, and on the relationship between private investors and investment advisors. This study is based on unique and original empirical data on advisors that work with retail and wealthy private investors.

scholarly journals Communicative Competence as the Basis of the Digital Age Metaliteracy

2020 ◽  
Vol 7 (2) ◽  
pp. 71-80
Author(s):  
T.V. Ustinova
Keyword(s):  
Decision Making ◽  
Information Processing ◽  
Communicative Competence ◽  
Digital Age ◽  
Meaning Construction ◽  
Metacognitive Awareness ◽  
Processing Ability ◽  
Methodological Status

This study aims to clarify the methodological status of metaliteracy and define the role of communicative competence in the structure of metaliteracy. It is stated that metaliteracy is to be regarded as the complex cognitive-communicative information competence. Metacompetence is defined as the person’s ability and readiness for judgment, reasoning, meaning construction and decision-making in learning and communication on the basis of critical selection, processing and evaluation of information. Contribution of linguistic, sociolinguistic and pragmatic competences to information processing ability is analyzed. It is concluded that information processing is communicatively mediated. The didactic value of metacognitive awareness in information processing is highlighted.

Spotlight

2021 ◽  
pp. 206-207
Keyword(s):  
Decision Making ◽  
New York ◽  
New York City ◽  
York City ◽  
Representative Sample ◽  
Digital Age ◽  
Internal Review ◽  
Using Data ◽  
Interdisciplinary Study ◽  
Internal Review Board

The HUMAN Project was initiated in 2014 by the Kavli Foundation in partnership with New York University’s Institute for the Interdisciplinary Study of Decision Making. 1 Its goal was to collect vast amounts of data from a representative sample of 10,000 New York City residents in 4,000 households over 20 years. Lacking both internal review board approval and sustainable funding, the HUMAN Project was suspended in 2018. Nonetheless, the ambitious scope of the study and what it revealed about the possibilities for collecting and using data in the digital age are intriguing. It is possible that this type of model could eventually be revived, perhaps with additional privacy protections built in....

Engaging with Startups to Enhance Corporate Innovation

2019 ◽  
pp. 103-116
Author(s):  
Henry Chesbrough
Keyword(s):  
Decision Making ◽  
Venture Capital ◽  
Innovation Strategy ◽  
Corporate Venture Capital ◽  
Significant Time ◽  
Corporate Capital ◽  
Multiple Resources ◽  
Corporate Innovation ◽  
Corporate Venture

Startups can be a powerful, effective ingredient in achieving a corporate innovation strategy. But startups worry that corporates are going to steal their ideas, and are too slow in their decision-making. Startups welcome corporate capital, but often their real needs are access to a corporation’s latest tools, technologies, channels, and customers. Large companies have multiple resources with which to engage startups. It isn’t just about money. Traditionally, large companies have deployed equity-based models of engagement, such as corporate venture capital. CVC has a role to play, but takes significant time and effort to manage. Equity-based models provide control, but don’t scale. Newer models of engagement with startups use a logic of influence, so that large companies can move faster and work with many more startups at the same time. These models relinquish control, but are built to scale.

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