The overconfidence bias in relation to investment decisions is well documented in psychology and behavioural finance literature. Less known is that an overconfidence bias also relates to financing decisions. Managers that are overconfident of their firm's future are likely to prefer debt to...

This paper represents one of the first studies to document an empirical relation between market sentiment and capital structure in the USA. In a sample of US firms we find that market sentiment as proxied by the University of Michigan Consumer Sentiment Index is pervasive and significant in...

Behavioural corporate finance (BCF) examines the effects of managerial and investor psychological biases on a firm's corporate finance decisions (such as investment appraisal and capital structure). In contrast to the well-developed research in behavioural finance (which examines the effects of...

The objective of this study is to generate a model that will measure the cost of type I and type II errors in a logistic estimation model. The paper's objective also is to find out how cost behaves when the cut-off point changed in an estimation model which leads to different decisions that...

This study is motivated by the need to further explore judgmental bias within the balanced scorecard (BSC). The focus is not only within its use as a performance measurement tool with bonus and incentive implications (Lipe and Salterio, 2000) but more importantly with its design stages which are...