The effect of price volatility on decision making

2007 ◽  
Author(s):  
Dante Pirouz
Keyword(s):  
Decision Making ◽  
Price Volatility

scholarly journals Revisiting the relationship between formal planning process and planning effectiveness

2018 ◽  
Vol 30 (2) ◽  
pp. 1016-1034 ◽  
Author(s):  
Said Elbanna ◽  
Tamer H. Elsharnouby
Keyword(s):  
Decision Making ◽  
United Arab Emirates ◽  
Structural Equation ◽  
Planning Process ◽  
Price Volatility ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Content Type ◽  
Tourism Sector ◽  
The Impact

Purpose The purpose of this study is to address a timely research question by clarifying whether formal planning is a worthy approach for hotels. In so doing, the authors developed a theoretical model that extends prior research by exploring how the formal planning process influences organizational capabilities and decision-making style. The model also examines the impact of the three identified factors on planning effectiveness. Design/methodology/approach Data were collected from 175 hotels located in United Arab Emirates (UAE) and Qatar and hypotheses were tested using structural equation modeling (SEM). Findings The study concludes that the practice of formal planning in the tourism sector does matter and both organizational capabilities and decision-making style are important factors in predicting planning effectiveness. Research limitations/implications Generalizations to organizations operating in other sectors, such as manufacturing or government sectors, should be drawn cautiously. Practical implications Taking into account oil price volatility and serious political crises in the region, this study provides several insights to hotel managers into how the formal planning process can influence planning effectiveness. Originality/value The findings enrich the debate on the role of formal planning in the tourism sector, which has been relatively devoid of similar studies.

Primacy or Recency? A Study of Order Effects When Nonprofessional Investors are Provided a Long Series of Disclosures

2011 ◽  
Vol 23 (1) ◽  
pp. 161-183 ◽  
Author(s):  
Robert Pinsker
Keyword(s):  
Decision Making ◽  
Voluntary Disclosure ◽  
Stock Price ◽  
Price Volatility ◽  
Order Effect ◽  
Decision Quality ◽  
Order Effects ◽  
Nonprofessional Investors ◽  
Recency Effects ◽  
Consistent Direction

ABSTRACT: Firms have the incentive to aggregate multiple pieces of good and bad news together in a consistent direction (i.e., all positive news or all negative news) and disclose it either sequentially or all together (simultaneously) in order to reduce the risk of stock price volatility or large stock price declines. Unfortunately for investors, disclosure patterns such as these may result in order effects, which reduce decision quality. My paper examines the results of three experiments in order to determine: (1) which order effect, if any, results when long series of consistent direction voluntary disclosures are made, and (2) if the sequential or simultaneous nature of the disclosures exacerbates any order effect found. The first two experiments use undergraduates as participants, while the third experiment uses actual nonprofessional investors to try and tease out explanations for the experimental findings. I find recency effects for all conditions in all experiments, and significantly greater recency effects for the sequential conditions relative to the simultaneous conditions in the 40-cue experiments. Additionally, results of the supplemental experiment provide evidence that nonprofessional investors can be information seeking and active in their investment decision-making, which can prohibit attention decrement. Findings contribute to the voluntary disclosure, judgment and decision-making (JDM), and belief revision literatures, as well as highlight the context-specific nature of the belief-adjustment model’s predictions.

Excess Supply and Price Volatility in the Mexican Potato Market: A Decision Making Framework

2013 ◽  
Vol 91 (3) ◽  
pp. 291-303
Author(s):  
J. Alberto García-Salazar ◽  
Rhonda K. Skaggs ◽  
Terry L. Crawford
Keyword(s):  
Decision Making ◽  
Price Volatility ◽  
Potato Market ◽  
Excess Supply ◽  
Decision Making Framework

The Effects of Decision Making on Futures Price Volatility

1996 ◽  
Vol 78 (3) ◽  
pp. 591-603 ◽  
Author(s):  
David A. Hennessy ◽  
Thomas I. Wahl
Keyword(s):  
Decision Making ◽  
Price Volatility ◽  
Futures Price

scholarly journals Earnings Surprise, Portfolio Inertia and Stock Price Volatility

2015 ◽  
Vol 3 (4) ◽  
pp. 301-320
Author(s):  
Shunwu Huang ◽  
Wang Chang ◽  
Lan Zheng
Keyword(s):  
Decision Making ◽  
Institutional Investors ◽  
Stock Prices ◽  
Stock Price ◽  
Price Volatility ◽  
Mediation Effect ◽  
Stock Price Volatility ◽  
Earnings Surprise ◽  
The Relationship

AbstractFrom the perspective of the mediation effect, this paper investigates whether institutional investors adjust their portfolios according to the listed companies earnings surprise. We find that the portfolio adjustments by institutional investors exert the mediation effect on the relationship between earnings surprise and stock price volatility. Institutional investors actively manage their portfolios in the rising market, which induces the stock price volatility; while they less adjust their portfolio in the falling market, the volatility declines. This paper helps understand the role of institutional investors in the fluctuation of stock prices, and provides a new basis for decision making of regulatory administration.

A bibliometric overview of volatility

2020 ◽  
pp. 1-13
Author(s):  
Ezequiel Avilés-Ochoa ◽  
Martha Flores-Sosa ◽  
José M. Merigó
Keyword(s):  
Decision Making ◽  
Core Collection ◽  
Web Of Science ◽  
Historical Analysis ◽  
Price Volatility ◽  
Business Economics ◽  
The Web

Price volatility is a matter of importance for making decisions in the finance world. The growing studies regarding volatility have focused on minimizing the risks through modeling, estimating and forecasting. This paper presents a bibliometric overview of the most important authors, institutions and countries that work on the topic. Additionally, a historical analysis of how the agents have interrelated is presented. For the purposes of the analysis and the design of tables and graphics, tools from the Web of Science Core Collection and the VOSviewer software were used. The results show the importance of volatility in the study of business economics and decision making.

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