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Journals / International Journal of Economics and Finance Studies / 2011 / Cilt: 3 Sayı: 2

IMPACT OF ANCHORING BIAS ON CORPORATE PROFITS AND SHAREHOLDERS WEALTH

Ibrahim Emre Karaa
Pages
105–115
Publication Date
2011-12-01
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

By using artificial dataset, I explicitly show the impact of this bias in borrowing that effect profitability of the company, shareholders wealth and costly time loses

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Behavioral Corporate Finance studies mainly concerned with irrationality in sense of overconfidence and optimism especially about the firms which are already take place in stock exchange.
📊
Key Findings & Data:In this paper, I examined impacts of the fixed opinion or a common belief of the statement “I never borrow money” which should be considered as a judgemental bias under the concept of anchoring in relatively small firms.
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Conclusion & Impact:By using artificial dataset, I explicitly show the impact of this bias in borrowing that effect profitability of the company, shareholders wealth and costly time loses
🔬Design:Research Article
📍Scope:Comprehensive Sample
⚙️Variables:Behavioral Corporate Finance · Corporate Decision making · Irrationality

Abstract

Behavioral Corporate Finance studies mainly concerned with irrationality in sense of overconfidence and optimism especially about the firms which are already take place in stock exchange. In this paper, I examined impacts of the fixed opinion or a common belief of the statement “I never borrow money” which should be considered as a judgemental bias under the concept of anchoring in relatively small firms. By using artificial dataset, I explicitly show the impact of this bias in borrowing that effect profitability of the company, shareholders wealth and costly time loses

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Cite This Article

Karaa, I. E. (2011). IMPACT OF ANCHORING BIAS ON CORPORATE PROFITS AND SHAREHOLDERS WEALTH. International Journal of Economics and Finance Studies, Cilt: 3 Sayı: 2, 105–115. https://ajindex.com/articles/993798

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