This paper examines the behavioural finance aspects of developed countries which invest significantly in R%D, while trying to benefit from this investment, within the framework of the so called 'creative intelligence'. At this level, creative intelligence lies in the framework of the...

This paper investigates whether there are differences in cosmetic earnings management between firms audited by male vs. female auditors in a sample of private Finnish firms. We find that earnings cosmetics is more likely to appear in firms audited by male auditors. Our results also indicate that...

The study examines the relationship between ethical values (idealism, relativism) and personality traits (Machiavellianism, locus of control) on decision-making of individuals and their perception on earnings management practices. Based on a survey of advanced auditing students in Canada, the...

This article advocates for more experimental finance research and emphasises that combining knowledge from various academic disciplines has the potential to inform all types of financial decisions. The psychology literature shows how the limits of human cognition affect financial...

Risk taking is a part of life, and people take risks in different contexts. Risk taking is mostly associated with aggression. Numerous studies have explored differences in risk taking between the genders. In addition, the relationships between risk taking and the hormones cortisol and...

This paper examines investment lumpiness under incentive restrictions. When financial frictions enter the picture into the neoclassical framework, investment is no longer smooth due to the lump-sum costs that the firm incurs when raising costly external finance. Whited (2006) shows that the firm...

Behavioural finance and behavioural corporate finance analyses the effects of psychological biases, heuristics, and emotions on investors' and managers' decision-making and performance. Taffler and Tuckett (2005) have introduced a major paradigm shift by introducing a new field of research,...

We extend and refine the welfare game developed by Coate et al. (2002) in two directions. First, by allowing the client and auditor to choose their strategies sequentially, we show that the most efficient equilibrium is that the client moves first to honestly report earnings, which is followed...

The empirical financial literature has recently suggested that the US stock market might be efficient in bad times and inefficient in good times. This article explains why some psychological phenomena such as wishful thinking, overconfidence and the house money effect might cause deviations from...

Corporate governance encompasses the processes for board effectiveness and enhanced transparent disclosures. Both these requirements result in improved quality and quantity of information made available to investors, which in turn is expected to result in informed trading, reduced information...