scholarly journals An Analysis on the Impact of Choice Overload to Consumer Decision Paralysis

2022 ◽  
Vol 4 (1) ◽  
pp. 55-75
Author(s):  
Jessa Mae Adriatico ◽  
Angela Cruz ◽  
Ryan Christopher Tiong ◽  
Clarissa Ruth Racho-Sabugo
Keyword(s):  
Asymmetric Information ◽  
Task Difficulty ◽  
Rational Choice Theory ◽  
Choice Theory ◽  
Ordinary Least Squares ◽  
Decision Task ◽  
Choice Overload ◽  
Least Squares Regression ◽  
Complexity Preference ◽  
The Impact

As consumers make purchase decisions, they often encounter a large number of options from which they base their choices. Traditional theories such as the Rational Choice theory imply that the more options involved, the more beneficial for the consumer. However, recent studies suggest otherwise. One such study is that of Choice Overload, a phenomenon in which individuals encounter difficulty when they are presented with too many options. Some studies show that Choice Overload causes paralysis in analysis in different industries. Decision Paralysis is the abandonment of making a decision due to overanalysis. The paper focused on proving if Decision Paralysis would take place when there is Choice Overload by analyzing whether the different antecedents of Choice Overload, namely Decision Task Difficulty, Choice Set Complexity, Preference Uncertainty, Decision Goal, and Asymmetric Information, would be affected by the number of options available. A survey was used to measure the different variables, and the data were analyzed through logistic regression and ordinary least squares regression. The results of this study indicate that Decision Task Difficulty and Asymmetric Information directly impact Choice Overload, which then contributes to the high probability of the occurrence of Decision Paralysis. It is difficult for consumers to choose when more options are offered; thus, abandoning their purchasing decision.

The impact of executives’ perceptions of environmental threats and organizational slack on innovation strategies

2016 ◽  
Vol 7 (2) ◽  
pp. 216-230 ◽  
Author(s):  
Chengyuan Wang ◽  
Biao Luo ◽  
Yong Liu ◽  
Zhengyun Wei
Keyword(s):  
Cognitive Theory ◽  
Environmental Changes ◽  
Ordinary Least Squares ◽  
Organizational Slack ◽  
Least Squares Regression ◽  
Content Type ◽  
Environmental Threats ◽  
Innovation Strategies ◽  
The Impact ◽  
The Relationship

Purpose The paper aims to study the relationship between executives’ perceptions of environmental threats and innovation strategies and investigate the moderating effect of contextual factor (i.e. organizational slack) on such relations. It proposes a dualistic relationship between executives’ perceptions of environmental threats and innovation strategies, in which different perceptions of environmental threats will lead to corresponding innovation strategies, and dyadic organizational slack can promote such processes. Design/methodology/approach The paper is based on a survey with 163 valid questionnaires, which were all completed by executives. Hierarchical ordinary least-squares regression analysis is used to test the hypotheses proposed in this paper. Findings The paper provides empirical insights about that executives tend to choose exploratory innovation when they perceive environmental changes as likely loss threats, yet adopt exploitative innovation when perceiving control-reducing threats. Furthermore, unabsorbed slack (e.g. financial redundancy) positively moderates both relationships, while absorbed slack (e.g. operational redundancy) merely positively influences the relationship between the perception of control-reducing threats and exploitative innovation. Originality/value The paper bridges the gap between organizational innovation and cognitive theory by proposing a dualistic relationship between executives’ perceptions of environmental threats and innovation strategies. The paper further enriches innovation studies by jointly considering both subjective and objective influence factors of innovation and argues that organizational slack can moderate such dualistic relationship.

Audit committee characteristics and the moderating effect of Malaysian code of corporate governance on IPO liquidity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amal Mohammed Al-Masawa ◽  
Rasidah Mohd-Rashid ◽  
Hamdan Amer Al-Jaifi ◽  
Shaker Dahan Al-Duais
Keyword(s):  
Corporate Governance ◽  
Initial Public Offerings ◽  
Audit Committee ◽  
Ordinary Least Squares ◽  
Moderating Effect ◽  
Least Squares Regression ◽  
Content Type ◽  
Code Of Corporate Governance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to investigate the link between audit committee characteristics and the liquidity of initial public offerings (IPOs) in Malaysia, which is an emerging economy in Southeast Asia. Another purpose of this study is to examine the moderating effect of the revised Malaysian code of corporate governance (MCCG) on the link between audit committee characteristics and IPO liquidity. Design/methodology/approach The final sample consists of 304 Malaysian IPOs listed in 2002–2017. This study uses ordinary least squares regression method to analyse the data. To confirm this study’s findings, a hierarchical or four-stage regression analysis is used to compare the t-values of the main and moderate regression models. Findings The findings show that audit committee characteristics (size and director independence) have a positive and significant relationship with IPO liquidity. Also, the revised MCCG positively moderates the relationship between audit committee characteristics and IPO liquidity. Research limitations/implications This study’s findings indicate that companies with higher audit committee independence have a more effective monitoring mechanism that mitigates information asymmetry, thus reducing adverse selection issues during share trading. Practical implications Policymakers could use the results of this study in developing policies for IPO liquidity improvements. Additionally, the findings are useful for traders and investors in their investment decision-making. For companies, the findings highlight the crucial role of the audit committee as part of the control system that monitors corporate governance. Originality/value To the authors’ knowledge, this work is a pioneering study in the context of a developing country, specifically Malaysia that investigates the impact of audit committee characteristics on IPO liquidity. Previously, the link between corporate governance and IPO liquidity had not been investigated in Malaysia. This study also contributes to the IPO literature by providing empirical evidence regarding the moderating effect of the revised MCCG on the relationship between audit committee characteristics and IPO liquidity.

The determinants of internet risk disclosure: empirical study of Egyptian listed companies

2017 ◽  
Vol 32 (8) ◽  
pp. 746-767 ◽  
Author(s):  
Ali Khalil ◽  
Mona Maghraby
Keyword(s):  
Listed Companies ◽  
Ordinary Least Squares ◽  
Risk Information ◽  
The Internet ◽  
Least Squares Regression ◽  
Risk Disclosure ◽  
Content Type ◽  
Reporting Practices ◽  
Board Characteristics ◽  
The Impact

Purpose The purpose of this paper is to contribute to the existing disclosure literature by examining the determinants of corporate risk disclosure (CRD) in the internet reporting for a sample of Egyptian listed companies on the Egyptian Stock Exchange (EGX). Design/methodology/approach This study depends on a sample of 76 Egyptian companies included in the EGX 100 in the period 2012-2014. The study applies a content analysis and uses a sentence-based method to measure CRD in the internet reporting. Ordinary least-squares regression analysis is used to examine the impact of firm and board characteristics on CRD in the internet reporting. Findings The empirical analysis shows that large Egyptian companies tend to disclose more risk information in their internet reporting. Moreover, the results indicate that there is a significant positive association between sector type and CRD in the internet reporting. The results show non-significant association between CRD and other firm characteristics (cross listing and level of risk). Finally, there are no significant associations between CRD and board characteristics variables (board size, board composition and CEO duality). Research limitations/implications The study’s findings have practical implications. It aids in informing policy makers considering implementing new economic reform programs about the properties of Egyptian companies that disclose risk information in their internet reporting. It provides insights on CRD in Egyptian companies for standards setters and professional authorities to improve risk reporting practices to help stakeholders in making good decisions. Originality/value This study is one of the first studies to examine the determinants of CRD in the internet reporting for a sample of Egyptian companies.

The effect of the financial crisis on audit quality: European evidence

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria I. Kyriakou
Keyword(s):  
Financial Crisis ◽  
Audit Quality ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Cross Sectional ◽  
Accounting Firms ◽  
Content Type ◽  
Financial Firms ◽  
The Impact ◽  
Big Four

Purpose This paper aims to examine the impact of the recent financial crisis on audit quality by analysing discretionary accruals. Design/methodology/approach This study considers a sample of German, French, Italian and Spanish non-financial firms from 2005 to 2013 to investigate the auditor’s independence. It uses a cross-sectional and time-series ordinary least squares regression model to control for other predictors of the auditor’s independence when the financial crisis produces a decrease in audit quality. Findings The proportion of the non-financial firms having lower audit quality was higher during the financial crisis. In addition, during the crisis auditors were less likely to provide a higher audit quality for these non-financial firms. The level of audit quality returned to normal levels during the post-crisis years when the crisis had ceased. Originality/value These findings contribute to the literature on the impact of economic and financial changes on audit quality. In addition, this research finds that the Big Four accounting firms provide a higher audit quality in different circumstances from non-Big Four accounting firms, and that audit quality decreased during the crisis and returned to normal in the post-crisis period.

State fragility and human development: a study with special emphasis on social cohesion

2020 ◽  
Vol 48 (1) ◽  
pp. 39-61
Author(s):  
Belay Seyoum
Keyword(s):  
Human Development ◽  
Social Cohesion ◽  
Low Income ◽  
Ordinary Least Squares ◽  
Low Income Countries ◽  
Least Squares Regression ◽  
Content Type ◽  
State Fragility ◽  
State Legitimacy ◽  
The Impact

PurposeThe purpose of this paper is to examine the effect of state fragility on select indicators of human development and identify aspects of state fragility that have the greatest impact on poverty reduction and sustainable development. The paper also explores the impact of social cohesion on human development as well as the mediating role of state legitimacy in mediating the relationship between social cohesion and human development.Design/methodology/approachThe study is based on data from 180 countries and uses ordinary least squares regression and mediation analysis to explore the effects of social cohesion on human development.FindingsThe findings show a significant relationship between state fragility and human development. It suggests that policies and efforts aimed at enhancing social cohesion would have the most significant impact on human development. The findings also show that social cohesion not only has a direct effect on human development but it also has an indirect effect on human development through state legitimacy (mediator).Practical implicationsEven though state fragility has been largely associated with low income countries, different facets of fragility are manifested in various countries regardless of levels of economic development.Originality/valueThe study is timely in view of the evidence of increasing state fragility in many countries. Furthermore, this is the first scholarly work linking lack of social cohesion, state fragility and human development.

scholarly journals The impact of AAOIFI governance disclosure on Islamic banks performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tawida Elgattani ◽  
Khaled Hussainey
Keyword(s):  
Corporate Governance ◽  
Regression Model ◽  
Financial Institution ◽  
Ordinary Least Squares ◽  
Annual Reports ◽  
Islamic Banks ◽  
Least Squares Regression ◽  
Content Type ◽  
The Impact ◽  
Governance Disclosure

Purpose This study aims to investigate the impact of the accounting and auditing organisation for Islamic financial institution (AAOIFI) governance disclosure on the performance of Islamic banks (IBs). Design/methodology/approach The ordinary least squares regression model was used to test the impact of AAOIFI governance disclosure on the performance of 126 IBs from 8 countries that mandatorily adopt the AAOIFI standards for three years (2013–2015). In this regression model, return on asset (ROA) and return on equity (ROE) are the dependent variables, while AAOIFI governance disclosure is the independent variable. Corporate governance mechanisms, firm characteristics, year dummy and country dummy are used as control variables. Findings This paper found an insignificant relationship between AAOIFI governance disclosure and IBs performance. Research limitations/implications This study highlighted the implication that the current research may help IBs and encourage them to disclose more information in annual reports, especially those related to AAOIFI governance standards because following good corporate governance leads to good financial performance. The major limitation of the paper is that it is only focussed on two measurements of bank performance – ROA and ROE; it would be good to use other firm performance measures, such as profit margin. Originality/value This study provides new empirical evidence on the impact of AAOIFI governance disclosure on IBs performance.

scholarly journals Bikes or Bust? Analyzing the Impact of Bicycle Infrastructure on Business Performance in San Francisco

2019 ◽  
Vol 2673 (12) ◽  
pp. 277-289
Author(s):  
Raleigh McCoy ◽  
Joseph A. Poirier ◽  
Karen Chapple
Keyword(s):  
San Francisco ◽  
Business Performance ◽  
The United States ◽  
Ordinary Least Squares ◽  
Grocery Stores ◽  
Least Squares Regression ◽  
Mode Shift ◽  
Bicycle Infrastructure ◽  
The Impact ◽  
Over Time

Transportation agencies at the local, state, and federal levels in the United States (U.S.) have shown a growing interest in expanding bicycle infrastructure, given its link to mode shift and safety goals. These projects, however, are far from universally accepted. Business owners have been particularly vocal opponents, claiming that bicycle infrastructure will diminish sales or fundamentally change the character of their neighborhoods. Using the case of San Francisco, this research explores the relationship between bicycle infrastructure and business performance in two ways: change in sales over time, and a comparison of sales for new and existing businesses. An ordinary least squares regression is used to model the change in sales over time, isolating the effect of location on bicycle infrastructure while controlling for characteristics of the business, corridor, and surrounding neighborhood. Through a series of t-tests, average sales for businesses that pre-date bicycle infrastructure and for those that opened after the installation of such projects are compared. Ultimately, the research suggests that location on bicycle infrastructure and changes in on-street parking supply generally did not have a significant effect on the change in sales, with a few exceptions. Businesses that sell goods for the home or auto-related goods and services saw a significant decline in sales when located on corridors with bike lanes. New and existing businesses generally had similar sales, though not across the board. New restaurants and grocery stores had significantly higher sales than their existing counterparts, suggesting bicycle infrastructure may attract more upmarket businesses in those industries.

Fewer voters, higher stakes? The applicability of rational choice for voter turnout in Quebec municipalities

2016 ◽  
Vol 35 (6) ◽  
pp. 990-1009 ◽  
Author(s):  
Sandra Breux ◽  
Jérôme Couture ◽  
Nicole Goodman
Keyword(s):  
Rational Choice ◽  
Voter Turnout ◽  
Rational Choice Theory ◽  
Choice Theory ◽  
Voter Participation ◽  
Local Elections ◽  
Multivariate Regression Model ◽  
Tax Rate ◽  
Rational Voter ◽  
The Impact

Municipal voter turnout is often considered to be a function of electorate size. According to the rational choice theory of voter behavior, a rational voter is more inclined to abstain in the presence of larger electorates, and more likely to participate in smaller ones. This article examines the impact of electorate size on voter turnout using a multivariate regression model to explain voter participation in Quebec municipalities in the 2009 and 2013 local elections ( N = 1040). Several other assumptions pertaining to the rational voter are also tested. We find that rational choice theory explains 45% of municipal voter participation in these Quebec elections and that it supports the probability of pivotal voting. Our analysis also confirms that the number of electors, number of mayoral candidates, tax rate, presence of a political party, and incumbency have different effects on participation in small and large municipalities.

Emotions

2011 ◽  
Author(s):  
Jon Elster
Keyword(s):  
Rational Choice Theory ◽  
Choice Theory ◽  
Science Inquiry ◽  
Information Gathering ◽  
Belief Formation ◽  
Theory Of Action ◽  
Actor Model ◽  
Rational Actor ◽  
The Impact

This article explores the role of emotions in the explanation of behavior. It first provides an overview of complexities associated with the term ‘emotion’ before discussing the link between emotions and rationality. In particular, it considers the rational choice theory of action and the notion of emotional choice, along with the impact of emotion on substantive preferences, formal preferences, beliefs and belief formation, and information-gathering. The article argues that emotions governing action should not be deemed inaccessible to analytic social-science inquiry. Even if emotions trigger actions and reactions discontinuous with prior action streams, emotions do not make the rational-actor model fail. Emotions can determine belief and urgency-based emotions can determine outcomes.

An investigation of government employees’ support for public-private partnerships

2017 ◽  
Vol 30 (5) ◽  
pp. 467-486 ◽  
Author(s):  
Razilya Shakirova
Keyword(s):  
Environmental Factors ◽  
Positive Impact ◽  
Organizational Factors ◽  
Ordinary Least Squares ◽  
Public Private Partnerships ◽  
Least Squares Regression ◽  
Government Employees ◽  
Content Type ◽  
The Usa ◽  
The Impact

Purpose The purpose of this paper is to investigate the factors that may influence support of public-private partnerships (PPPs) by government employees potentially involved in designing and implementing cross-sectoral collaborations. Design/methodology/approach Based on an original survey of government employees in the USA, this study explores the impact of individual, organizational and environmental factors on their support for PPPs by employing ordinary least squares regression. Findings Among the individual factors, involvement in PPPs and concerns for efficiency have been identified as factors having positive impact on government employees’ support for PPPs. Male government employees seem to be less supportive of PPPs than female government employees. Environmental factors such as public opinion and appointed agency heads positively influence government employees’ views of PPPs. No evidence for the significant impact of organizational factors on government employee perceptions of PPPs was found. Research limitations/implications Factors influencing government employees’ attitudes may also have an effect on employees’ behaviors when involved in PPPs. Further studies may clarify how attitudes are translated into behaviors and how they influence the performance of PPPs. Investigations into government employees’ views of PPPs before and after their actual involvement in partnerships may allow for identifying changes in employees’ support for PPPs and their possible causes. Originality/value This study investigates the impacts of individual, organizational and environmental factors on government employees’ support for partnerships with the private sector that remain under-researched in the literature.

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