Behavioural Corporate Finance

Authored book


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Publication Details

Author list: Lobão J
Publisher: Cambridge Scholars Publishing
Place: Cambridge
Publication year: 2016
ISBN: 978-1-4438-8517-1
Languages: English-Great Britain (EN-GB)


Abstract

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 firms.


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Last updated on 2019-10-08 at 00:15