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: corporate governance is best seen not as a subset of economics or even law, but instead as a subset of moral psychology. Recent … research in the nascent field of moral psychology suggests that we humans are not rational beings, particularly when we act in … veneer of rationality, to reassure ourselves of our own moral integrity and to signal our moral values to like-minded others …
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This paper investigates how the combination of preferences and biases impact the risk-value profile of acquiring firms. We find strong evidence that prior losses impact acquisition risk as firms with negative prior returns are more prone to become acquirers and make value destructive...
Persistent link: https://www.econbiz.de/10012981708
Neoclassical Economics and the Efficient Market Hypothesis (EMH) along with all its types have been a go to for investors since decades but why do almost all speculators tend to lose money while making their financial decisions? Stock market is the most vulnerable place towards uncertainty and...
Persistent link: https://www.econbiz.de/10013307313
I propose here the psychological attraction theory of financial regulation—that regulation is the result of psychological biases on the part of political participants—voters, politicians, bureaucrats, and media commentators; and of regulatory ideologies that exploit these biases. Some key...
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"This enlightening book comprehensively maps the current state of economic psychology and behavioural economics … economic decisions are made by answering key questions in the bordering field between economics and psychology. Close to the … ecological rationality research program, it presents the main factors that determine economic choices, before exploring the most …
Persistent link: https://www.econbiz.de/10014372512
Shared mental models: ideologies and institutions / Arthur T. Denzau and Douglass C. North -- The institutional foundations of political competence: how citizens learn what they need to know / Arthur Lupia and Mathew D. McCubbins -- Taking sides: a fixed choice theory of political reasoning /...
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