scholarly journals Behavioral Issues for Sustainable Investment Decision-Making: A Literature Review

2016 ◽  
Vol 12 (1) ◽  
pp. 1 ◽  
Author(s):  
Andrea Tomo ◽  
Giovanni Landi
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Managerial Decision ◽  
Behavioral Issues ◽  
Responsible Behavior ◽  
Thomson Reuters ◽  
Investment Decision Making ◽  
Decision Making Processes ◽  
Sustainable Investment ◽  
Corporate Social

The aim of this work is to understand the role of the Environmental, Social and Governance (ESG) paradigm in the corporate assessment by investors and the use of this paradigm as guide for managerial decision-making process by corporations. A review of the international literature is provided using five different couples of keywords on Thomson Reuters ISI Web of Knowledge research engine. The literature production increased only after the 2007 crisis and the median year of the results is 2011, thus highlighting just a recent attention to themes as ethics and corporate social responsibility. Main limitations are related to the classic limitations of literature reviews, as the choice of number and type of keywords and journals, the resulting selection of studies, the choice of relevant outcomes and the interpretation, generalization and application of results. The study provides both theoretical and practical implications: a complete review of contributions on the theme is provided; then, some insights in investors and corporations behaviors through the ESG lens, thus suggesting a more ethical and responsible behavior in investment decision-making processes.

Role of personal values in investment decisions

2016 ◽  
Vol 39 (8) ◽  
pp. 940-964 ◽  
Author(s):  
Otuo Serebour Agyemang ◽  
Abraham Ansong
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Quantitative Methods ◽  
Investment Decision ◽  
Personal Values ◽  
Investment Decisions ◽  
Content Type ◽  
Investment Decision Making ◽  
Recent Emergence ◽  
Decision Making Processes

Purpose This paper aims to examine the role personal values play in investment decision-making processes among Ghanaian shareholders. Design/methodology/approach In consequence of the recent emergence of the issue of corporate governance practices in Ghana, and the kind of the research objective of this paper, a mix of qualitative and quantitative methods was used. These methods were used in two stages. The first stage was qualitative, which purposively selected 20 individual shareholders to solicit their perspectives on how personal values influence investment decisions. Their responses were used to construct the content of this enquiry. The second stage, which was quantitative, used stratified sampling technique to select 503 individual shareholders to confirm the responses obtained from stage one of the enquiry. Findings The findings of the study reveal that individual shareholders in Ghana hold value priorities and that honesty, a comfortable life and family security play a significant role in their lives and their investment decision-making processes, and the kind of companies they choose to invest in. Also, to Ghanaian individual shareholders, there is a clear distinction between a comfortable life and a prosperous life in the sense that they are not incentivized more by the latter but by the former in their investment decisions. Practical implications The results can inform corporate directors and managers what values are considered in investment decisions, and that it is not purely financial. With these results, they can be informed that while some financial values are important, it is just to live a comfortable life and not a prosperous life. This may influence these directors and managers to have a more long-run focus and to have more of a corporate social responsibility (CSR) focus by putting implementable measures in place to tackle corporate responsibility issues and to take up a responsibility for their CSR feat. Also, the results can be used for public policy in that if regulators find out that more CSR-type information is important to investors, they might require additional CSR-type disclosures in financial statements. Originality/value This paper contributes to the knowledge on the stakeholder perspective of corporate governance that individual shareholders’ personal values have influence on their investment decisions and the choice of companies they invest in.

Application of Fuzzy Logic in Investment-Intensive Decision Making

2020 ◽  
pp. 386-404
Author(s):  
Prateek Pandey ◽  
Shishir Kumar ◽  
Sandeep Shrivastava
Keyword(s):  
Decision Making ◽  
Fuzzy Logic ◽  
New Product Development ◽  
Investment Decision ◽  
High Stake ◽  
Investment Decision Making ◽  
High Investment ◽  
Decision Making Processes ◽  
Robust System ◽  
Critical Process

Fuzzy logic has been serving the industry for decades by resolving the ambiguities that appear as a result of imprecise environment. High-stake decision-making processes require inputs from various stakeholders to incorporate. If the risk is high, as in the case of high investment decision making, a robust system of incorporating opinions from multiple stakeholders must be set in place in order to avoid any inconsistency or bad decisions. Fuzzy matrices and arithmetic can play a rescuer in such situations. In this chapter, the authors demonstrate a decision-making framework incorporating the use of fuzzy numbers and arithmetic to make critical decisions in strategic marketing and new product development. Forecasting in the domains of new products is an utmost complex and critical process because no relevant history is available owing to the product's ‘one-of-its-kind' nature. In such cases, computation via analogy is an interesting paradigm, which is also discussed in the chapter.

A qualitative analysis of capital budgeting in cotton ginning plants

2017 ◽  
Vol 14 (3) ◽  
pp. 210-229 ◽  
Author(s):  
Afonso Carneiro Lima ◽  
José Augusto Giesbrecht da Silveira ◽  
Fátima Regina Ney Matos ◽  
André Moura Xavier
Keyword(s):  
Decision Making ◽  
Specific Activity ◽  
Investment Decision ◽  
Capital Budgeting ◽  
Research Approach ◽  
Managerial Decision ◽  
Content Type ◽  
Investment Decision Making ◽  
Short Run ◽  
Managerial Experience

Purpose To analyze capital budgeting practice in a group of small cotton ginning firms in Brazil. The study aims at describing how investment decision-making in the agribusiness context may be influenced by heuristics and by the business setting. Design/methodology/approach This research adopted an exploratory and qualitative approach in gauging the practice of capital budgeting in Brazilian cotton ginning firms and discussing actual managerial decision-making. Data collection involved interviews with managers of ten different firms and a further content analysis was performed. Findings Results reveal a practical managerial approach aimed at ensuring satisfactory net operating results in the short run. Sophistication in capital budgeting is not considered as essential, as institutional and strategic environment influences directly affect impose high risks. Investment decision-making is highly influenced by managerial experience. Research limitations/implications Because of the chosen research approach, results may lack generalizability. However, in addressing a specific sector in a specific location, one can identify and craft strategies in response to managerial needs more effectively. Practical implications The paper clarifies how heuristics, managerial experience and the institutional context may influence investment decision-making in cotton ginning operations. It also suggests how actions aimed at evaluating risk and improving the screening of investment perspectives could contribute to improve investment decisions. Originality/value The paper provides an in-depth perspective in addressing the practice of capital budgeting in the context of a specific activity and describing key issues related to it.

scholarly journals Understanding strategic decision-making through a multi-paradigm perspective

2017 ◽  
Vol 7 (1) ◽  
pp. 2-20 ◽  
Author(s):  
Christos Anagnostopoulos ◽  
Terri Byers ◽  
Dimitrios Kolyperas
Keyword(s):  
Decision Making ◽  
Empirical Work ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategy Formulation ◽  
Managerial Decision ◽  
Content Type ◽  
Charitable Foundations ◽  
Decision Making Processes ◽  
Corporate Social

Purpose The purpose of this paper is to illustrate the efficacy of using a multi-paradigm perspective to examine the relationship between corporate social responsibility (CSR) and strategic decision-making processes in the context of charitable foundations. Design/methodology/approach This paper integrates and synthesizes the micro-social processes of “assessable transcendence” (Anagnostopoulos et al., 2014) with Whittington’s (2001) perspectives on strategy. “Assessable transcendence” was achieved from the constant comparison of categories developed through an early iterative process in which data collection and analysis occurred during the same period. In all, 32 interviews were conducted among a sample of key managers in the charitable foundations for the first two divisions of English football. Findings The present study illustrates empirically that strategic decision making in charitable foundations does not “seat” neatly in any one of Whittington’s perspectives. On the contrary, this study indicates a great deal of overlap within these perspectives, and suggests that conflicting paradigms should be celebrated rather than viewed as signs of theoretical immaturity. Multi-paradigm approaches can potentially reveal insights into the “mechanics” of managerial decision making that are not easily discernible from a mono-paradigmatic perspective. Originality/value This is the first empirical work that examines CSR in relation to strategy within the context of the English football clubs’ charitable foundations, and does so by employing a multi-paradigm perspective on strategy formulation and implementation.

scholarly journals An Index to Measure the Integrity of Investment Companies Investing Responsibility

2020 ◽  
Vol 5 (5) ◽  
pp. 36-51
Author(s):  
Don Andrew
Keyword(s):  
South Africa ◽  
Decision Making ◽  
Investment Decision ◽  
Decision Making Process ◽  
Responsible Investment ◽  
Investment Companies ◽  
Investment Decision Making ◽  
Sustainable Investment ◽  
Primary Strategy

Stakeholders realise the value and impact of Responsible Investment (RI) upon making informed decisions about investments. Due to this, more organisations are pressured to report on RI performances and put positive and/or negative strategies in place to address ESG issues and to implement ESG policies into the primary strategy of their operations. There are many governments and organisations globally which support sustainable investment and as one such administration, South Africa has legislated to manage RI issues (www.gov.za). Recognition is given to the both CRISA and PRI as well as taking the integrated environmental, social and governance (ESG) considerations into the investment decision making process into consideration when assisting in identifying, managing and mitigating potential ESG risks to achieve sustainable long-term investment outcomes.

scholarly journals Role of Behavioral Factors in Share Market Investment Decision Making

2019 ◽  
Vol 8 (12S2) ◽  
pp. 786-796
Keyword(s):  
Decision Making ◽  
Psychological Factors ◽  
Service Providers ◽  
Investment Decision ◽  
Individual Investors ◽  
Special Focus ◽  
Chi Square ◽  
Behavioral Issues ◽  
Investment Decision Making ◽  
The Impact

Investment behavior of individual investors in the share market highly influenced to variety of psychological factors. All the psychological factors highly contribute for investors’ decision of allocating the surplus financial resources for different instruments and stocks in the stock market. Major psychological bias broadly classified as Heuristic Bias, Prospect Bias, Market Bias and Hardening Bias. But, in this study authors concentrated in detail to investigate the impact of Heuristic bias on the investment decision making of Indian share market investors with special focus on the representativeness, over confidence, anchoring, gambler’s fallacy and availability bias. 375 share market investors selected from different geographical areas and different share broking houses to answer structured questionnaire but response received for 310 questionnaires. Also, share broker, financial experts and regular investors informally interviewed to get in-depth knowledge on the issues related for influence of psychology on investment decision of individual investors of share market. Different behavioral variables in this study have been justified on the basis of respondents’ age, gender, geography, kind of investor, recourses for investment, amount for investment etc. Indian share market investment lagging behind just with the participation of not more than 6% of the total population due to several issues, one among is failure of both investor and share service providing agencies to understand the influence of behavioral issues and its impact on investment decision. Final justification in the present empirical paper draw by applying different statistical techniques like chi-square test, factor analysis, co-relation analysis and ANOVA techniques of SPPS 20. This research attempt may be highly helpful for both the investors and financial service providers to reconstruct strategies after considering behavioral issues and its impact on investment.

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