Corporate financial management and managers’ (ir)rationality

IF 0.2 0 ART
Ahmedin Lekpek
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Abstract

The aim of this paper is to analyze how managers who are characterized by optimism and excessive self-confidence, as forms of bias and irrationality, manage corporate finances. The assumption of the perfect rationality of an average man, from which the proponents of traditionalist economic views proceeded, proved to be unfounded in practice and was rejected by modern economics. Limited rationality and the absence of rationality in making economic decisions by the average person are accepted as real phenomena. The thesis that managers are more rational than average people is also called into question. Irrationality can occur in various forms. This paper deals with two forms of irrationality: optimism and excessive self-confidence, and factors that affect their level. It is considered how the optimism and excessive self-confidence of managers affect the profiling of investment, financing and dividend payment policies. Furthermore, factors that control actions of biased managers are presented. The results of the analysis of the relevant literature demonstrate that biased managers mainly rely on internal and short-term external sources of financing, invest significantly more and with greater risks than average managers, and generally pursue a residual dividend policy.
企业财务管理与管理者理性
本文的目的是分析以乐观和过度自信为特征的管理者如何管理公司财务,作为偏见和非理性的形式。传统主义经济学观点的支持者所依据的一个普通人完全理性的假设,在实践中被证明是没有根据的,并被现代经济学所拒绝。普通人在做出经济决策时的有限理性和缺乏理性被认为是真实存在的现象。经理人比普通人更理性的论点也受到了质疑。非理性可以以各种形式出现。本文探讨了非理性的两种表现形式:乐观和过度自信,以及影响其水平的因素。本文考虑了管理者的乐观主义和过度自信如何影响投资、融资和股息支付政策的轮廓。此外,还提出了控制有偏见管理者行为的因素。对相关文献的分析结果表明,偏倚型管理者主要依赖内部和短期外部融资来源,投资明显高于普通管理者,风险也更大,普遍采取剩余股利政策。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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