DecisionSciRN: Decision-Making Authority (Topic)最新文献

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Pricing Ethics in the Foreign Exchange Market: Environmental, Social and Governance Ratings and Currency Premia 外汇市场的定价伦理:环境、社会和治理评级与货币溢价
DecisionSciRN: Decision-Making Authority (Topic) Pub Date : 2021-07-15 DOI: 10.2139/ssrn.3887760
I. Filippou, Mark P. Taylor
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引用次数: 8
I Am The Firm! Eponymous Firms and Rose-Coloured Forecasts 我就是律所!同名公司和乐观的预测
DecisionSciRN: Decision-Making Authority (Topic) Pub Date : 2020-12-27 DOI: 10.2139/ssrn.3755887
D. Kliger, Yevgeny Mugerman, Ruth Rooz
{"title":"I Am The Firm! Eponymous Firms and Rose-Coloured Forecasts","authors":"D. Kliger, Yevgeny Mugerman, Ruth Rooz","doi":"10.2139/ssrn.3755887","DOIUrl":"https://doi.org/10.2139/ssrn.3755887","url":null,"abstract":"We invoke the famous Louis XIV quote “L'État, c'est moi,” applying it to the corporate world, and introduce the novel idea that a self-serving bias, which we define as “I Am The Firm,” is infused within the culture of certain companies. We hypothesize that the owners of eponymous firms – firms that bear the names of their owners – experience enhanced self-identification with their firms, and thus tend to inject their own subjective beliefs and desires into the realistic objective prospects of the firms. The “I am the firm” effect is a form of a self-serving bias, which arises from the blurring of boundaries between the owner and the corporate eponymy entity that carries the same name. Employing a unique corporate setting in Israel, we demonstrate that eponymous firms disclose unduly optimistic biased forecasts relative to their non-eponymous counterparts, which cannot be validated or justified solely by rational explanations. The obfuscation of the boundaries in eponymous firms between subjective illusory desires and objective realistic truths is revelatory and has far-reaching implications in various aspects of corporate decisions, which we suggest will require future research.","PeriodicalId":269008,"journal":{"name":"DecisionSciRN: Decision-Making Authority (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116716571","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 1
Designing Organizations in Volatile Markets 在动荡的市场中设计组织
DecisionSciRN: Decision-Making Authority (Topic) Pub Date : 2019-03-01 DOI: 10.2139/ssrn.3275742
Shuo Liu, Dimitri Migrow
{"title":"Designing Organizations in Volatile Markets","authors":"Shuo Liu, Dimitri Migrow","doi":"10.2139/ssrn.3275742","DOIUrl":"https://doi.org/10.2139/ssrn.3275742","url":null,"abstract":"Multinational and multiproduct firms often experience uncertainty in the relative return of conducting activities in different markets due to, for example, exchange rate volatility or the changing prospects of different products. We study how a multi-divisional organization should optimally allocate decision-making authority to its managerial members when operating in such volatile markets. To be able to adapt its decisions to local conditions, the organization has to rely on self-interested division managers to collect and disseminate the relevant information. We show that if communication takes the form of verifiable disclosure, then centralized decision-making does not suffer from information asymmetry and it allows the headquarter of the organization to better cope with the inter-market uncertainty. However, a downside of centralization is that it can discourage information acquisition, and this negative effect is amplified by the need for coordinating the activities of different divisions. As a result, the optimality of decentralized decision-making can actually be driven by a large coordination motive.","PeriodicalId":269008,"journal":{"name":"DecisionSciRN: Decision-Making Authority (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2019-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132196397","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 6
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