Decision-making for mergers and acquisitions: the role of agency issues and behavioral biases

2012 ◽  
Vol 21 (1-2) ◽  
pp. 59-69 ◽  
Author(s):  
Sanjay Dhir ◽  
Amita Mital
Keyword(s):  
Decision Making ◽  
Mergers And Acquisitions ◽  
Behavioral Biases ◽  
Agency Issues

scholarly journals The Urge to Merge: The Role of Governance Structures in Mergers and Acquisitions

1970 ◽  
Vol 13 (2) ◽  
pp. 151-166
Author(s):  
Catherine Daily ◽  
Dan Dalton
Keyword(s):  
Decision Making ◽  
Mergers And Acquisitions ◽  
Board Of Directors ◽  
Board Composition ◽  
Outside Directors ◽  
Target Firm ◽  
Target Firms ◽  
The Board Of Directors ◽  
The Relationship

The 1990s have witnessed merger and acquisition activity which rivals that of the 1980s "merger mania." As firms continue to consolidate either within industries or across industries it is appropriate to investigate those aspects of a target firm which might attract a bidder. The board of directors, a central decision-making body in the corporation, may provide insights into this process. This study investigates the relationship between board composition and size and the incidence of a firm being targeted for a merger or acquisition. Results of a logistic regression analysis of a matched set of target firms and firms not targeted for merger or acquisition reveal that target firms have higher proportions of independent outside directors and more total numbers of directors. Moreover, we find that target firms have greater exposure to institutional investors.

Impact of socio-psychological factors on investment decisions: The mediating role of behavioral biases

2020 ◽  
Author(s):  
Sadia Jabeen ◽  
Syed Zulfiqar Ali Shah ◽  
Naheed Sultana ◽  
Altamash Khan
Keyword(s):  
Decision Making ◽  
Social Interaction ◽  
Loss Aversion ◽  
Investment Decision ◽  
Equation Modeling ◽  
Behavioral Biases ◽  
Mediating Role ◽  
Investment Decision Making ◽  
The Relationship

Unlike previous studies that examine the effect of behavioral biases on investor decision-making, this study explores the root causes of behavioral biases and examines the mediating role of behavioral biases in the relationship between different types of emotions and investment decision-making. The cognitive theory of depression, attentional control theory, and prospect theory together provide the foundation and anticipate that stress, depression, anxiety, and social interaction are the major sources of cognitive mistakes that,in turn, affect investment decision-making. Model testing relies upon the data collected from 252stock investors trading in different stock exchanges of Pakistan; in order to test the hypothesized relationship, structural equation modeling has been used. Depression is a major source of loss aversion bias. Anxiety is a strong source of herding. Stress is a major source of representative bias.Social interaction is a root cause of overconfidence. Loss aversion bias, herding, and overconfidence fully mediate the relationship between depression, anxiety, social interaction, and investor decision; however, anxiety has the strongest impact on investor decision via herding bias, while stress has both insignificant direct and indirect effect on investment decision-making. Keywords: Sources of biases, self-efficacy, behavioral pattern, investment decision.

scholarly journals Decision-Making, Financial Risk Aversion and Behavioral Biases: The Role of Testosterone and Stress

2017 ◽  
Author(s):  
John R. Nofsinger ◽  
Fernando Patterson ◽  
Corey A. Shank ◽  
Robert T. Daigler
Keyword(s):  
Decision Making ◽  
Risk Aversion ◽  
Financial Risk ◽  
Behavioral Biases

scholarly journals Decision-making, financial risk aversion, and behavioral biases: The role of testosterone and stress

2018 ◽  
Vol 29 ◽  
pp. 1-16 ◽  
Author(s):  
John R. Nofsinger ◽  
Fernando M. Patterson ◽  
Corey A. Shank
Keyword(s):  
Decision Making ◽  
Risk Aversion ◽  
Financial Risk ◽  
Behavioral Biases

Elaborating the role of reflection and individual differences in the study of folk-economic beliefs

2018 ◽  
Vol 41 ◽  
Author(s):  
Kevin Arceneaux
Keyword(s):  
Decision Making ◽  
Individual Differences ◽  
Cognitive Processes ◽  
Evolutionary History ◽  
Behavioral Responses ◽  
History Of ◽  
Economic Beliefs

AbstractIntuitions guide decision-making, and looking to the evolutionary history of humans illuminates why some behavioral responses are more intuitive than others. Yet a place remains for cognitive processes to second-guess intuitive responses – that is, to be reflective – and individual differences abound in automatic, intuitive processing as well.

The Role of Shared Decision-Making in Audiologic Rehabilitation

2014 ◽  
Vol 21 (1) ◽  
pp. 15-23 ◽  
Author(s):  
Helen Pryce ◽  
Amanda Hall
Keyword(s):  
Decision Making ◽  
Shared Decision Making ◽  
Behavior Changes ◽  
Shared Decision ◽  
Patient Centered ◽  
Treatment Information ◽  
Centered Care ◽  
Potential Risks ◽  
Audiologic Rehabilitation

Shared decision-making (SDM), a component of patient-centered care, is the process in which the clinician and patient both participate in decision-making about treatment; information is shared between the parties and both agree with the decision. Shared decision-making is appropriate for health care conditions in which there is more than one evidence-based treatment or management option that have different benefits and risks. The patient's involvement ensures that the decisions regarding treatment are sensitive to the patient's values and preferences. Audiologic rehabilitation requires substantial behavior changes on the part of patients and includes benefits to their communication as well as compromises and potential risks. This article identifies the importance of shared decision-making in audiologic rehabilitation and the changes required to implement it effectively.

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