Author(s): Gregor Žvipelj
Journal: Management
ISSN 1854-4223
Volume: 6;
Issue: 2;
Start page: 191;
Date: 2011;
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Keywords: behavioural finance | management buyout | crowd psychology | optimism | greed
ABSTRACT
The theory of behavioral economics examines the behavior of individualsin markets in order to examine, explain and predict individualbehavior. The psychology of behavior has evolved in order to explainthe impact of emotions and most common cognitive errors in thedecision-making process of individuals. Psychological and sociologicalaspects, which can be explained by a qualitative case study, are used tounderstand their behavior. In this paper we shall analyse the rationalityof management behavior from the Behavioral Economy perspectivethrough a plural case study. The conclusions drawn from our researchshow that non-economic factors, such as overconfidence, arrogance,greed and optimism significantly contribute to the management buyoutdecision.
Journal: Management
ISSN 1854-4223
Volume: 6;
Issue: 2;
Start page: 191;
Date: 2011;
VIEW PDF
DOWNLOAD PDF Original pageKeywords: behavioural finance | management buyout | crowd psychology | optimism | greed
ABSTRACT
The theory of behavioral economics examines the behavior of individualsin markets in order to examine, explain and predict individualbehavior. The psychology of behavior has evolved in order to explainthe impact of emotions and most common cognitive errors in thedecision-making process of individuals. Psychological and sociologicalaspects, which can be explained by a qualitative case study, are used tounderstand their behavior. In this paper we shall analyse the rationalityof management behavior from the Behavioral Economy perspectivethrough a plural case study. The conclusions drawn from our researchshow that non-economic factors, such as overconfidence, arrogance,greed and optimism significantly contribute to the management buyoutdecision.
