scholarly journals The Role of Ethical Environment in Reducing Escalation of Commitment Bias

2021 ◽  
Vol 4 (2) ◽  
pp. 129
Author(s):  
Tertiarto Wahyudi ◽  
Yusnaini Yusnaini ◽  
Agil Novriansa
Keyword(s):  
Adverse Selection ◽  
Empirical Studies ◽  
Investment Project ◽  
Project Managers ◽  
Escalation Of Commitment ◽  
Ethical Environment ◽  
Postgraduate Students ◽  
Investment Projects ◽  
Decision Making Behavior

Several empirical studies have shown that decision makers tend to experience an escalation of commitment bias, namely a tendency to continue investment projects that are less profitable, even though there is information of the less profitable project performance and that other available alternative investment opportunities are more profitable in the future. This study aims to improve the manager's decision making behavior model by considering the ethical environment as one of the factors that influence investment project evaluation decisions. More specifically, this study empirically examines the ethical environment as a strategy to reduce the tendency for escalation of commitment behavior. This study uses a laboratory experimental method with a 2 x 2 factorial experimental design between subject with adverse selection (present / absent) and ethical environment (strong / weak). The research sample consisted of 246 undergraduate and postgraduate students in Accounting and Management who acted as investment project managers. Based on ANOVA analysis results, it shows that managers who experience adverse selection conditions tend to continue unfavorable projects (conduct escalation of commitment). In addition, the results of this study also show that the tendency of managers to end investment projects that are not profitable for managers who are in a condition of a strong ethical environment will be greater when they experience adverse selection conditions compared to when they do not experience it.

نماذج المحاكاة- محاكاة مونتي كارلو- كأسلوب كمي من أساليب النمذجة واتخاذ القرارات - مقاربة نظرية وتطبيقية

2021 ◽  
Vol 1 (1) ◽  
Author(s):  
محمد الأمين ◽  
بن حامد عبد الغني ◽  
مراس محمد
Keyword(s):  
Monte Carlo Simulation ◽  
Monte Carlo ◽  
Quantitative Methods ◽  
Practical Importance ◽  
Investment Project ◽  
Simulation Method ◽  
Period Analysis ◽  
Investment Projects ◽  
Monte Carlo Simulation Model

Our research aims to try to present the modeling mechanisms in the field of simulation and quantitative methods. The research is a presentation of the role of quantitative methods in making investment project evaluation decisions, more than that and is the use of the Monte Carlo simulation model in evaluation and multi-period analysis of investment projects under conditions Risk and uncertainty. And highlighting the theoretical, scientific and practical importance of the Monte Carlo simulation method in particular, and the importance of using quantitative methods in helping to make decisions in general

scholarly journals Pengaruh Adverse Selection dan Negative Framing pada Kecenderungan Eskalasi Komitmen

2017 ◽  
pp. 1
Author(s):  
Ari Puspa Sari ◽  
Gede Wira Kusuma
Keyword(s):  
Experimental Design ◽  
Factorial Design ◽  
Adverse Selection ◽  
Investment Project ◽  
Sampling Technique ◽  
Framing Effect ◽  
Escalation Of Commitment ◽  
Anova Analysis ◽  
Analysis Techniques ◽  
Management Students

Escalation of commitment is a decision to increase or expand the commitment to a project or a particular investment even though the investment project or indicate failure. This research has the objective to obtain empirical evidence of the effect of adverse selection and negative framing effect on the escalation of commitment tendency. Experimental design used of this research is 2 x 2 factorial design with the instrument in the form of cases. Participants in this research were Magister ofAccounting and Magister of Management students, as a proxy manager chosen by purposive sampling technique as much as 196 participants. This research uses of two ways ANOVA analysis techniques. This research proves that adverse selection and negative framing have an influence on the propensity of escalation of commitment.

scholarly journals The Reputation Effect

2015 ◽  
Vol 4 (1) ◽  
pp. 1-17
Author(s):  
Lionel Artige ◽  
Rosella Nicolini
Keyword(s):  
Empirical Analysis ◽  
Fixed Effects ◽  
Investment Project ◽  
Estimation Technique ◽  
Investment Projects ◽  
European Bank ◽  
Available Information ◽  
Reputation Effect ◽  
Fixed Effects Estimation

This paper proposes an empirical analysis of the role of memory in determining the size of credits granted by the European Bank for Reconstruction and Development (EBRD) during 1991–2003. We first build an original database from information associated with the number and contract types granted by clients, after which we develop an empirical strategy for capturing the role of memory, namely by defining three different indicators to approximate each client’s reputation. These indicators rely on the client’s identity and, when available, information associated with previous EBRD-financed investment projects. With the fixed-effects estimation technique, our results unambiguously show that the value of the first investment project financed by the EBRD, as a proxy for reputation, is the most effective indicator for established clients to determine the size of the credits they receive to finance further investments.

scholarly journals Current Issues in Assessment of Risks Related to Investment Projects

2018 ◽  
Vol 7 (3.15) ◽  
pp. 336 ◽  
Author(s):  
Alexander Sergeevich Voronov ◽  
Mikhail Vladimirovich Karmanov ◽  
Irina Anatolievna Kiseleva ◽  
Vladimir Ivanovich Kuznetsov ◽  
Lidia Sergeevna Leontieva
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Investment Project ◽  
Investment Projects ◽  
Project Valuation ◽  
Analysis Methods ◽  
Project Risks ◽  
Capm Model ◽  
Definition Of

The definition of the essence of an object of management in economics is an indispensable component of professional risk management. Since the national risk management theory is just being formed, the need to find a clear and comprehensive definition for the notion "risks" is especially topical. Capital valuation is one of the most important issues, which needs to be solved by companies during ROI studies. This article makes an attempt to study the role of risk management in the implementation of investment projects. The main purpose of this article is to identify the main regularities which determine the peculiarities of risk assessment in business, being the key element facilitating the organization of investment projects. The objectives have been as follows: to review the basic concepts of risk management; to study its components in business; to reflect the system and risk management principles, and to carry out risk assessment; to consider the main kinds of risks in the business area.The article describes various types of investment and project risks, risk analysis methods for investment projects, as well as efficiency indicators of investment projects, and provides an analysis of risk factors and uncertainties during the development of investment projects. The peculiarities of the practical use of project risks’ analysis methods have been studied. Risk assessment methods for an investment project help evaluate its feasibility, the time within which it will start being profitable, as well as the probabilistic volume of its future profits. Investment project valuation models have been analyzed, in particular, the CAPM model for emerging capital markets. The DCF method has been studied, being the base for assessing the attractiveness of business in general and a company's investment project in particular.  

scholarly journals The Reputation Effect: A Case Study of Credit Contracts in Transition Economies

2016 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Lionel Artige ◽  
Rosella Nicolini
Keyword(s):  
Empirical Analysis ◽  
Transition Economies ◽  
Fixed Effects ◽  
Investment Project ◽  
Estimation Technique ◽  
Investment Projects ◽  
Credit Contracts ◽  
Available Information

<p><em>This paper proposes an empirical analysis of the role of memory in determining the size of credits granted by the European Bank for Reconstruction and Development (EBRD) during 1991–2003. We first build an original database from information associated with the number and contract types granted by clients, after which we develop an empirical strategy for capturing the role of memory, namely by defining three different indicators to approximate each client’s reputation. These indicators rely on the client’s identity and, when available, information associated with previous EBRD-financed investment projects. With the fixed-effects estimation technique, our results unambiguously show that the value of the first investment project financed by the EBRD, as a proxy for reputation, is the most effective indicator for established clients to determine the size of the credits they receive to finance further investments.</em></p>

scholarly journals Analysing Managers’ Financial Motivation for Sustainable Investment Strategies

2019 ◽  
Vol 11 (14) ◽  
pp. 3849 ◽  
Author(s):  
Hsiao-Fen Hsiao ◽  
Tingyong Zhong ◽  
Hasan Dincer
Keyword(s):  
Project Managers ◽  
Investment Strategies ◽  
Investment Policies ◽  
High Productivity ◽  
Investment Projects ◽  
Advanced Technologies ◽  
Proposed Model ◽  
Sustainable Investment ◽  
Best Fit

The purpose of the research is to examine the importance of financial rewards and managers’ motivations, including sustainable investment projects. For that, the role of financial motivation for managers is analysed to understand strategic priorities for sustainable investment policies. Panel data for non-financial listed companies in China are used to determine the best-fit values of the proposed model, and the results of the Lagrange multiplier (LM) and Hausman tests are discussed for sustainable investment strategies. The results demonstrate that both low-paid and highly-paid managers in valuable project firms tend to be conservative and that managers consolidate their positions through underinvestment. This finding is clear evidence that managers are reluctant to take a risk on sustainable investment strategies. However, highly-paid managers of non-valuable project firms are generally willing to obtain high productivity through advanced technologies. The results are also generalized for strategies that are related to project managers’ financial motivation to increase the efficiency of sustainable investment decisions.

Mathematics Textbook as an Object of Research/Matematički udžbenik kao predmet istraživanja

2014 ◽  
Vol 16 ◽  
Author(s):  
Dubravka Glasnović Gracin
Keyword(s):  
Mathematics Education ◽  
Mathematical Knowledge ◽  
Empirical Studies ◽  
Mathematics Textbooks ◽  
Mathematics Textbook ◽  
Mathematics Book

AbstractA mathematics textbook can be described as an officially authorized and pedagogically designed mathematics book written to provide mathematical knowledge to students. This description suggests the authority of the textbook - because it has been authorized by an administrative source and because it deals with authorized knowledge. This paper provides an overview of research on mathematics textbooks. The emphasis is on questions concerning the extent to which and how textbooks are used in mathematics education in Croatia and in the world.Research results show that mathematics textbooks are widely used in mathematics education worldwide. This finding points to the need for research on the content and structure of textbooks. Such studies are combined with the associated results on how textbooks are used in the classroom and which methods teachers apply in using textbooks in mathematics education. The results of the empirical studies show that teachers use textbooks for lesson preparation and pupils use mathematics textbooks for exercises to a great extent. These results imply that such an important role of textbooks in mathematics education deserves additional attention, with the goal of understanding and improving mathematics education.Key words: mathematics education; overview; research on textbook---SažetakMatematički udžbenik može se opisati kao službeno autorizirana i pedagoki osmiljena matematička knjiga napisana s ciljem da učenicima ponudi matematičke sadržaje. Taj opis sugerira autoritet udžbenika jer ga je autorizirao administrativni izvor i jer sadrži autorizirano znanje. Ovaj članak daje pregled istraživanja matematičkih udžbenika, a naglasak je na pitanjima u kojoj mjeri i kako se udžbenici koriste u nastavi matematike u Hrvatskoj i u svijetu.Rezultati raznih istraživanja pokazuju da se udžbenici u velikoj mjeri koriste u nastavi matematike irom svijeta. Taj nalaz ukazuje na potrebu za istraživanjem sadržaja i strukture matematičkih udžbenika. Uz to, prikazani su rezultati istraživanja o tome na koji se način udžbenici koriste u razredu i koje metode nastavnici prakticiraju prilikom upotrebe udžbenika na nastavi. Rezultati empirijskih studija pokazuju da nastavnici udžbenike većinom koriste za pripremu nastavnog sata, a učenici udžbenike koriste u najvećoj mjeri za vježbanje. Ti rezultati ukazuju na to da tako važna uloga udžbenika u matematičkom obrazovanju zaslužuje dodatnu pažnju s ciljem razumijevanja i poboljanja nastave matematike.Ključne riječi: istraživanje udžbenika; nastava matematike; pregled.

Improving the financial investment system as an object of business economics

2020 ◽  
Vol 26 (3) ◽  
pp. 508-526
Author(s):  
O.T. Astanakulov ◽  
E.G. Sheina
Keyword(s):  
Deductive Reasoning ◽  
Methodological Approach ◽  
Investment Project ◽  
Assessment Method ◽  
Expert Assessment ◽  
Business Economics ◽  
Financial Investment ◽  
Economic Relations ◽  
Investment Projects ◽  
Investment Control

Subject. This article explores the economic relations of economic entities concerning effective investment activities, combining elements of investment control and assessment of related risk. Objectives. The article aims to analyze and logically substantiate the stages and types of investment activities of enterprises and investment projects in-progress, as well as define a methodological approach to assessing project risks. Methods. For the study, we used a structural and logical analysis, and deductive reasoning. The methodological base of the study is based on the principles of the theory of finance, investment and risk management. Results. The article defines stages of assessing the financial condition of enterprises and proposes a methodological approach to assessing certain risks of an investment project based on the risk ranking by degree of probability and significance of an event through applying the expert assessment method. The article also presents a practice-oriented risk map for investment projects and clarifies the concept of Investment Control. Conclusions. The results of the study can help address the significant for the Russian economy issue of stimulating and developing investment activities at enterprises, as well as implementing and evaluating the effectiveness of investment projects at the micro-and macro-levels of the country's economy.

The Role of Theories of Embodied Cognition in Research and Modeling of Emotions

2019 ◽  
Vol 62 (5) ◽  
pp. 124-138
Author(s):  
Alexandra V. Shiller
Keyword(s):  
Artificial Intelligence ◽  
Embodied Cognition ◽  
Mirror Neurons ◽  
Empirical Studies ◽  
Unknown Quantity ◽  
Emotional Processes ◽  
Strong Artificial Intelligence ◽  
European Philosophy ◽  
Postmodern Philosophy

The article analyzes the role of theories of embodied cognition for the development of emotion research. The role and position of emotions changed as philosophy developed. In classical and modern European philosophy, the idea of the “primacy of reason” prevailed over emotions and physicality, emotions and affective life were described as low-ranking phenomena regarding cognitive processes or were completely eliminated as an unknown quantity. In postmodern philosophy, attention focuses on physicality and sensuality, which are rated higher than rational principle, mind and intelligence. Within the framework of this approach, there is a recently emerged theory of embodied cognition, which allows to take a fresh look at the place of emotions in the architecture of mental processes – thinking, perception, memory, imagination, speech. The article describes and analyzes a number of empirical studies showing the impossibility of excluding emotional processes and the significance of their research for understanding the architecture of embodied cognition. However, the features of the architecture of embodied cognition remain unclear, and some of the discoveries of recent years (mirror neurons or neurons of simulation) rather raise new questions and require further research. The rigorously described and clear architecture of the embodied cognition can grow the theoretical basis that will allow to advance the studies of learning processes, language understanding, psychotherapy techniques, social attitudes and stereotypes, highlight the riddle of consciousness and create new theories of consciousness or even create an anthropomorphic artificial intelligence that is close to “strong artificial intelligence.”

Expectations from Chinese Muslim Converts for Islamization of Society in Malaysia: Lessons from Life of the Companions (Angkaan Pengubahsuaian Cina Islam untuk Pengislaman Soci-ety di Malaysia: Pelajaran dari Kehidupan Para Sahabat)

2019 ◽  
Vol 16 (1) ◽  
pp. 278-296
Author(s):  
Mek Wok Mahmud ◽  
Sayed Sikandar Shah Haneef
Keyword(s):  
Economic Development ◽  
Empirical Studies ◽  
The Self ◽  
Way Of Life ◽  
Socio Economic Development ◽  
Chinese Muslims ◽  
Process Studies ◽  
Divine Guidance

Reversion to Islam while opening golden opportunities for a revert in terms of divine guidance and spiritual salvation is coming with somewhat insurmountable challenges in terms of Islamization of the self, family and contributions to the overall development of Malaysia as a multi-religious country. This is especially so when Islam as an official religion has made the issue of Islamization of the Malaysian society and its systems amongst the pivotal national agendas in the country.  As to what is the role of Chinese Muslims (reverts) in the process, studies, among others, have purported to present the statistics about their share in socio-economic development. Similarly, empirical studies point to the odds faced by this community at personal, family and community levels in their path for transition to the full Islamic way of life. To the presenters of this paper, however, the macro dimension of what it means to become a Muslim which is essential for adjustment to the Islamic requirements has not been sufficiently highlighted in discourses in the area. Accordingly, this paper presents the position statements on Islamic expectations from Chinese reverts with the purpose of motivating them to achieve greater things in the area of Islamization of their community and the nation to the effect. Keywords: Chinese converts, Islamization, expectations and challenges. Abstrak kembalinya seseorang kepada agama Islam selain dari membuka peluang keemasan dalam mendapat  petunjuk Ilahi dan pengisian rohani turut disertai dengan cabaran yang amat sukar untuk diatasi termasuklah cabaran Islamisasi diri, keluarga serta sumbangan kepada pembangunan keseluruhan Malaysia sebagai negara berbilang agama. Hal ini menjadi satu keutamaan terutamanya apabila Islam memegang status sebagai agama rasmi persekutuan yang menjadikan isu Islamisasi masyarakat Malaysia sebagai satu agenda nasional. Bagi menjayakan agenda ini, peranan umat Islam dari kalangan masyarakat Cina (cina muslim) juga perlu diambil kira. Statistik menunjukkan cina muslim turut mempunyai bahagian dalam menyumbang terhadap pembangunan sosio-ekonomi negara. Dalam pada masa yang sama, kajian empirikal membuktikan adanya bentuk bentuk cabaran yang dihadapi oleh komuniti ini di peringkat peribadi, keluarga dan komuniti dalam perjalanan mereka untuk kembali kepada cara hidup Islam yang sepenuhnya. Bagi kami pengkaji kertas ini, dimensi makro dalam menjadikan dan mengertikan  seseorang itu Muslim terutamanya dalam menyesuaikan diri dengan ajaran  Islam masih belum cukup diberi  penjelasan dan penerangan yang sewajarnya. Oleh itu, makalah ini cuba menerangkan idea dan cadangan yang berguna kepada cina muslim dengan tujuan memotivasikan  mereka bagi  mencapai kejayaan  yang lebih besar dari aspek Islamisasi di kalangan komuniti mereka seterusnya memberi sumbangan kepada negara. Kata kunci:  Cina Muslim, Islamisasi, harapan dan cabaran.

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