Looking beneath the surface : The impact of psychology on corporate decision making (original) (raw)
Psychology and American Corporate Capitalism: Further Reflections and Future Directions
Psychological Inquiry, 2007
We want to begin by thanking the nine commentators for taking the time and energy to read our target article on American Corporate Capitalism (ACC) and for formulating such stimulating responses. We also want to thank them for, on the whole, approaching our article in the spirit in which it was intended: an attempt to begin to formulate an understanding of how one of the most dominant features of contemporary American life (and, we believe, global life) may be detrimentally affecting values, goals, quality of life, social functioning, and the Earth's ecology. As we noted in our target article, it is difficult to write about a politically and emotionally charged topic such as capitalism in a scientific manner-certainly we struggled with this challenge as we went through multiple drafts of our target article. We hope that this interchange encourages more psychologists to begin to explore this topic in a rigorous theoretical and scientific manner. The commentators raise quite a number of interesting issues, and we hope that readers of Psychological Inquiry will understand that any reply which addressed each and every point raised would end up appearing defensive, ponderous, and disconnected. We have therefore decided to organize this response around the target article's major sections and themes, thereby retaining some of its structure. Hopefully, such a strategy will make this reply more coherent, integrated and, ultimately, useful.
How Psychology Affects Decisions in Corporate Finance: Traditional vs. Behavioural Approach
Journal of Governance and Regulation, 2012
The aim of this research is to draw a theoretical line to connect on a common conceptual base, behavioural fi-nance with what is internationally known as Modern Finance. The debate often involves discussions about the prevalence of rationality over irrationality. This paper will address mainly two questions: as an economist, should I propend for traditional or for behavioural finance? And, perhaps more important, are they in opposition to each other? Linking the principles upon which the traditional theory of finance is based to behavioural finance appears also to be useful to better understand recent global turmoil in the world financial system. In finding such links, behavioural finance studies will help on driving research to define market models much closer to reality than they are today. Thus literature recognition will be carried out, starting from the most important contribution to fundamental analysis, value theory, going through modern portfolio theory and efficient market ...
CEO emotional intelligence and board of directors' efficiency
Corporate Governance, 2013
This article deals with the relationship existing between the emotional aspect and decisionmaking processes. More specifically, it examines the links between emotional intelligence, decision biases and effectiveness of the governance mechanisms. The primary purposes of this article are to: consider emotional intelligence like new research ideas that make important contributions to society; offer suggestions for improving manuscripts submitted to the journal; and discuss methods for enhancing the validity of inferences made from research.
The psychological context of strategic decisions: A test of relevance to practitioners
Strategic Management Journal, 1989
A number of authors argue that research in the organizational sciences must produce results that are both rigorous and relevant. These results should go beyond the obvious, yielding unexpected variation in our understanding of organizational phenomena. A recent paper published in this journal by the authors reported the results of a laboratory experiment examining the effect of several psychological influences on strategic decisions. This note reports the results of a survey in which executives and MBA sudents were asked to predict the results of the experiment. Although the respondent predictions were consistent, their overall set of predictions was inaccurate.
11.CEO Emotional Intelligence and Board of Directors Efficiency
Purpose -This article deals with the relationship existing between the emotional aspect and decision-making processes. More specifically, it examines the links between emotional intelligence, decision biases and effectiveness of the governance mechanisms. The primary purposes of this article are to: consider emotional intelligence like new research ideas that make important contributions to society; offer suggestions for improving manuscripts submitted to Consortium for Research on Emotional Intelligence in Organizations; and discuss methods for enhancing the validity of inferences made from research.
Organizational Psychology, 2019
The article analyzes the current state, trends and development prospects of business psychology based on the Fifth International Scientific and Practical Conference “Business Psychology: Theory and Practice (HSE, Moscow, Russia), which was held November, 30 - December, 1, 2018. The conference was prepared and held by the master’s program “Psychology in Business”, which is the domestic scientific and practical center for the development of business psychology - a new branch in applied psychology. Presentations, their discussion, workshops showed a growing interest of researchers and practitioners to business psychology. There has been a tendency to search for a deeper psychological validation of business psychological tools, search for integrated approaches that can be the basis for the development of business psychological practice. A more clear understanding of the structure of business psychology from the perspective of personal, organisational, social, cultural factors of busines...