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Behavioural corporate finance / Julio Lobao

By: Resource type: Ressourcentyp: Buch (Online)Book (Online)Language: English Publisher: Newcastle upon Tyne : Cambridge Scholars Pub., 2016Copyright date: ©2016Description: 1 online resource (x, 197 pages)ISBN:
  • 9781443887410
Other title:
  • Behavioral corporate finance
Subject(s): Additional physical formats: 9781443885171 | 1443885177 | Erscheint auch als: 978-1-4438-8517-1 Druck-AusgabeDDC classification:
  • 658.2
  • 658.15
  • 658.409 23
  • 658.40899999999999
LOC classification:
  • HG4515.15
  • HD38.2 -- .L63 2016eb
Online resources: Summary: Orthodox financial theory often ignores the role played by managers' personal characteristics in their decision-making processes. However, as anyone with experience in the business world knows, managers' personalities are crucial in the choices they make. Indeed, it should be noted that firms do not make decisions, rather it is the managers who decide - either as a group or individually.This book explores the impact of managers' psychological profiles and life experiences on their financial decisions, taking the following key questions as starting points: Why do they commit mistakes? Why do they contract debt and issue shares? How do they choose the right amount of dividends to distribute? Why do they acquire other firms? Why do they sometimes choose to manipulate information and to commit fraud?As the book highlights, having insights into managers' psychology is essential to understanding their choices and predicting decisions made by competing firmsSummary: Intro -- Table of Contents -- Part I - The Decision of the Manager -- Chapter One -- 1.1. Management Errors in Financial Theory -- 1.2. Behavioural Finance in the Firm -- 1.3. Book Layout -- Notes -- Chapter Two -- 2.1. A Biased Mind -- a) Framing Effects -- b) Violation of the Dominance Principle -- c) Loss Aversion -- 2.2. Overconfidence -- a) Introduction -- b) Overconfident Managers -- c) Management Overconfidence Over Time -- d) Sources of Overconfidence -- e) Measuring Managers' Overconfidence -- 2.3. The Planning Fallacy and Scenario Thinking -- 2.4 Other Decision biases -- a) Confirmation bias -- b) Anchoring bias -- c) Availability bias -- d) Cognitive Dissonance -- e) Illusion of Control -- Notes -- Chapter Three -- 3.1. Introduction -- 3.2. Empirical Evidence -- 3.3. Financial Decisions in a Group -- 3.4. Improving Group Decisions -- Notes -- Chapter Four -- 4.1. Learning -- 4.2. Competition -- 4.3. Incentives -- Notes -- Chapter Five -- Notes -- Chapter Six -- 6.1. Introduction -- 6.2. Empirical Evidence -- 6.3. Managers' Personality and Institutional Factors -- Notes -- Chapter Seven -- Notes -- Part II - Financial Decisions in Organisations -- Chapter Eight -- 8.1. Introduction -- 8.2. The Manager and the Investment -- a) Investment and the Company's Internal Financial Resources -- b) Reluctance to Disinvest and the Escalation of Commitment -- c) Implications for Corporate Governance -- Notes -- Chapter Nine -- 9.1. Introduction -- 9.2. The Manager and the Financing Decisions -- a) Differences of Opinion between Managers and Shareholders -- b) Managerial Overconfidence -- Notes -- Chapter Ten -- 10.1. Introduction -- 10.2. Investors and Dividend Demand -- 10.3. Managers and Dividend Supply -- a) Managers' Surveys -- b) Managers' Behavioural Motivation -- Notes -- Chapter Eleven -- 11.1. IntroductionSummary: 11.2. Managerial Overconfidence -- 11.3. Other Behavioural Factors that affect the Manager -- 11.4. Behavioural Effects Resulting from the Negotiation Process -- a) The "Competitive Arousal -- b) The Manager's Overcommitment -- 11.5. The Manager's Opposition to a Merger or Acquisition -- 11.6. Corporate Governance Implications -- a) Reducing the Manager's Overconfidence -- b) Mitigating the "Competitive Arousal -- c) Mitigating the Manager's Overcommitment -- Notes -- Chapter Twelve -- 12.1. Capital Budgeting Decisions -- 12.2. Financing Decisions -- a) The Moment to Issue Shares -- b) Results from Managers Surveys -- c) The Impact of Market Timing in the Firms' Capital Structure -- d) Profitability after Share Issuance -- 12.3. Dividends -- 12.4. Mergers and Acquisitions -- 12.5. Other Decisions -- a) Stock splits -- b) Corporate Name Changes -- Notes -- Chapter Thirteen -- a) Capital Budgeting -- b) Financing -- c) Mergers and Acquisitions -- Notes -- Chapter Fourteen -- 14.1. Organisational Culture -- 14.2. Decision Biases in the Culture of the Organisation -- 14.3. Information Manipulation and Fraud -- Notes -- Chapter Fifteen -- Notes -- Appendix A -- Bibliography -- IndexPPN: PPN: 860324575Package identifier: Produktsigel: ZDB-26-MYL | ZDB-30-PAD | ZDB-30-PBE | ZDB-30-PQE
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