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The purpose of this study is to explore and understand, how strong financial literacy influences the cognitive biases of students in Germany while investing. Second, it also evaluates the most influential cognitive biases that students encounter when undertaking their investment decisions within this environment.

A quantitative approach is used to assess the relationship between financial literacy and students’ investment-related cognitive biases by using the frameworks proposed by Clercq (2019) and Pompian (2012).

The results advocate that the students’ financial literacy positively impacts their cognitive biases within the investment process. It additionally revealed the most significant biases regarding students’ investment decision-making and proposed the possible reasons behind their behavioral distortions.

The study provides a detailed review of the behavioral tendencies of the younger generation while investing and creates recommendations for prospective researchers.

This research lies at the junction of the behavioral finance field, suggesting that it assists in developing a theoretical framework of cognitive biases within students’ financial decisions. Furthermore, it serves as an addition to the financial management subject course that would provide valuable insights about, first and foremost, financial literacy and subsequently, the theory behind the investment process.

Broiler meat is the most commonly used meat product worldwide. Although China is regarded as one of the three largest broiler producers, the per capita chicken consumption remains low. Consumers' cognitive bias and the information acquisition channels are believed to be the main factors contributing to this. This paper aims to discuss the aforementioned issue.

To explore the phenomenon empirically, the current study uses the survey data of 1,056 consumers from China and analyses them using ordered logistic regression.

The results revealed that consumers' cognitive bias significantly affects their behaviour toward broiler products, and the order of influence is cognitive bias regarding industry cognitive > product nutrition and taste > food safety. The study further revealed that the more diverse the information acquisition channels, the more likely they are to promote consumer behaviour toward broiler chickens. The order of influence of the channels was self-organising > new media > traditional media.

Overall, the findings suggest that the government and enterprises should strengthen and upgrade information channels to boost both the broiler industry and consumer consumption behaviour regarding poultry products.

Rather than the usual focus on the impact of consumer cognition on consumer behaviour, this study examines the impact of cognitive bias on consumer behaviour. Further, centring on broiler products with high protein, low fat and feed-to-meat ratios, this study explores the reasons the per capita consumption of broiler products in China is far lower than the national average.

The authors review the small but growing literature linking cognitive biases to food safety problems and foodborne illness outbreaks.

The authors conducted a search of peer-reviewed articles utilizing empirical methods published since the year 2000 focusing on food safety or foodborne illnesses/outbreaks and cognitive biases.

The authors find that most research is conducted at the consumer side of the food system, with few studies examining the potential problems that can arise in the production and processing of food. The authors also observe that most research tends to focus on a few cognitive biases.

This is the most comprehensive study to date examining insights from the literature on cognitive biases and the related discipline of behavioral economics to the specific problem of foodborne illness outbreaks and food safety problems.

The purpose of this paper is to highlight the prominent cognitive biases that influence Lean practices in organisations that have a multi-cultural work environment which will aid the organisational managers and academics in enhancing the understanding of the human thought process and mitigate them suitably.

A multiple case study was conducted in organisations that were previously committed to Lean practices and had a multi-cultural work environment. This research was conducted on five companies based on 99 in-depth semi-structured interviews and seven process observations that sought to establish the system-wide cognitive biases present in a multi-cultural Lean environment.

The novel findings indicate that nine new biases influence Lean implementation and practices in a multi-cultural environment. This study also found strong connectivity between Lean practices and 45 previously identified biases that could affect positively or negatively the lean methodologies and their implementation. Biases were resilient enough that their influence on Lean in multi-cultural workplaces, even with transient populations, did not demonstrate cultural differentiation.

Like any qualitative research, constructivism and narrative analyses are subjected to understanding based on knowledge gained on the subject, and data may have been interpreted differently. Constructivist co-recreation of process scenarios based result limitations is therefore acknowledged. The interactive participation in exploring the knowledge sought after and interaction that could have a probable influence on the participant need to be acknowledged. However, the research design, multiple methods of data collection, generalisation based on data collection and analysis methods limit the effects of these and findings are reliable to a greater extent.

The results can provide an enhanced understanding of biases and insights into a new managerial approach to take remedial steps on biases’ influence on Lean practices that can result in improved productivity and well-being from a business process perspective. Understanding and mitigating the prominent biases can aid Lean manufacturing processes and support decision makers and line managers in improving lean methodologies’ effectiveness and productivity. The biases can be negated and used to implement decisions with ease. The influence of biases and the model could be used as a basis to counter implementation barriers.

To the best of the authors’ knowledge, this is the first study that connects the cognitive perspectives of Lean business processes in a multi-cultural environment to identify the cognitive biases that influence Lean practices in organisations that were previously committed to Lean practices. The novel findings indicate that nine new biases and 45 previously identified biases influence Lean implementation and practices in a multi-cultural environment. The second novelty of this study shows the connection between cognitive biases, Lean implementation and practices in multi-cultural business processes.

This article aims to systematically review the literature published in recognized journals focused on cognitive heuristic-driven biases and their effect on investment management activities and market efficiency. It also includes some of the research work on the origins and foundations of behavioral finance, and how this has grown substantially to become an established and particular subject of study in its own right. The study also aims to provide future direction to the researchers working in this field.

For doing research synthesis, a systematic literature review (SLR) approach was applied considering research studies published within the time period, i.e. 1970–2021. This study attempted to accomplish a critical review of 176 studies out of 256 studies identified, which were published in reputable journals to synthesize the existing literature in the behavioral finance domain-related explicitly to cognitive heuristic-driven biases and their effect on investment management activities and market efficiency as well as on the origins and foundations of behavioral finance.

This review reveals that investors often use cognitive heuristics to reduce the risk of losses in uncertain situations, but that leads to errors in judgment; as a result, investors make irrational decisions, which may cause the market to overreact or underreact – in both situations, the market becomes inefficient. Overall, the literature demonstrates that there is currently no consensus on the usefulness of cognitive heuristics in the context of investment management activities and market efficiency. Therefore, a lack of consensus about this topic suggests that further studies may bring relevant contributions to the literature. Based on the gaps analysis, three major categories of gaps, namely theoretical and methodological gaps, and contextual gaps, are found, where research is needed.

The skillful understanding and knowledge of the cognitive heuristic-driven biases will help the investors, financial institutions and policymakers to overcome the adverse effect of these behavioral biases in the stock market. This article provides a detailed explanation of cognitive heuristic-driven biases and their influence on investment management activities and market efficiency, which could be very useful for finance practitioners, such as an investor who plays at the stock exchange, a portfolio manager, a financial strategist/advisor in an investment firm, a financial planner, an investment banker, a trader/broker at the stock exchange or a financial analyst. But most importantly, the term also includes all those persons who manage corporate entities and are responsible for making their financial management strategies.

Currently, no recent study exists, which reviews and evaluates the empirical research on cognitive heuristic-driven biases displayed by investors. The current study is original in discussing the role of cognitive heuristic-driven biases in investment management activities and market efficiency as well as the history and foundations of behavioral finance by means of research synthesis. This paper is useful to researchers, academicians, policymakers and those working in the area of behavioral finance in understanding the role that cognitive heuristic plays in investment management activities and market efficiency.

Despite evidence showing that cognitive biases – the systematic errors made by humans during cognitive processing, are prevalent among decision-makers, there is a lack of theoretical models providing insight into how these limitations of human mind might affect decisions made during performance management. This study aims to fill this gap and contribute to performance management scholarship by proposing a conceptual framework broadening our understanding of the role of cognitive biases in performance improvements practices and by highlighting remedies for cognitive biases.

Using benchmarking as an example, the authors integrate the knowledge from performance management and cognitive psychology literature. Examples of cognitive biases possible during benchmarking are used to illustrate how the limitations of human mind might have a critical role in performance management.

The cognitive biases might diminish the positive effect of performance improvement practice on organizational performance. As there is a prevalence of cognitive biases coupled with the inability of individuals to recognize and face them, the remedy for cognitive biases should be sought not at an individual but rather on an organizational level, in creating organizational cognitive biases policy (CBP).

The presented model provides new insights into the role of cognitive biases in performance management and allows seeing CBP as a safeguard against the effects of cognitive biases on performance. By referring to cognitive biases and CBP, our model also helps to understand why the same performance improvement practices might incite different opinions among decision-makers.

In a work environment marked by unprecedented complexity, volatility and ambiguity, managers must accomplish their objectives while navigating many challenges. This paper aims to investigate potential interrelations among environmental transformations, cognitive biases and strategic decisions. In particular, the purpose of the study is to crystallize the state of art on the impact of cognitive biases on strategic decisions, in the context of environmental transformations.

The authors have conducted a systematic literature review to identify existing relevant work on this topic and to detect potential avenues for future research.

The findings highlight how decision-making is influenced and enabled by internal (e.g. perception) and external factors (e.g. digitalization). Specifically, the strategic role of cognitive biases appears to be crucial when investigating the related impact on strategic decisions in times of environmental transformation.

Implications are drawn for scholars and practitioners interested in evaluating the role of specific decision-making determinants for the formation and implementation of strategic decisions. In this sense, we stress that decision-makers need to manage their cognitive biases and select the right information out of a wide data set in order to adapt to environmental transformations.

By systematizing the literature review, potential interrelations among environmental transformations, cognitive biases and strategic decisions are identified. Furthermore, the primary phases that drive the decision-making process are proposed (analysis, decision, onboarding and control).

This study aims to determine the effect of cognitive biases, that is, anchoring effect, illusion of control, and endowment effect, on customer satisfaction.

An experimental design was applied using 524 undergraduate students as participants. A three-way ANOVA was employed for data analysis.

Positive relationships were found between cognitive biases and customer satisfaction. However, no such relationships were found between the interactions of various types of cognitive bias and customer satisfaction, except the interaction between illusion of control and endowment effect.

This study focuses only on three types of cognitive biases; thus, it cannot be generalized to other such systematic patterns.

Marketers can introduce cognitive bias when implementing marketing campaigns to boost customer satisfaction.

This study expands the knowledge boundary by addressing the impact of the interaction between various aspects of cognitive bias that drive customer satisfaction.

The purpose of this paper is to investigate if and how firms approach debiasing and what determines its success. In particular, this study examines if debiasing is effective in reducing cognitive decision biases. This paper also investigates organizational characteristics that determine the effectiveness of debiasing.

This study uses survey data from German firms to answer the research questions. Target respondents are individuals in a senior management accounting function.

In line with the hypotheses, this paper finds that debiasing can reduce cognitive biases. Moreover, this study finds that psychological safety not only directly influences the occurrence of cognitive biases but is also an important factor that determines the effectiveness of debiasing.

This paper provides evidence that debiasing can serve as a powerful management accounting tool and discusses debiasing in the context of recent management accounting literature. This study also adds to the stream of research that investigates the role of psychological safety in organizations by highlighting its importance for successful debiasing.

This paper informs firms that use or intend to use debiasing about crucial determinants to consider when debating its implementation, i.e. psychological safety. This study also identifies risk management as a potential interface for the implementation of systematic debiasing.

While previous research primarily addresses specific cognitive biases and debiasing mechanisms using lab experiments, this is – to the best of the knowledge – the first study investigating cognitive biases and debiasing on a broad conceptual level using survey data.

While some studies have found that cognitive biases are detrimental to entrepreneurial performance, others have conjectured that cognitive biases may stimulate entrepreneurial action. This study uses a typology of availability and representative heuristics to examine how two patterns of biases affect entrepreneurial performance. Drawing on ideas from cognitive science, this study predicts that various levels of biases in each pattern stimulate entrepreneurial behavior and performance.

A profile-deviation approach was employed to analyze data from 253 entrepreneurs and zero-truncated Poisson regression and the zero-truncated negative binomial regression to test hypotheses.

This study finds some positive associations between a particular level of cognitive biases in each of the two patterns and entrepreneurial behavior and performance. Results show that the patterns of biases often stimulate and never hurt entrepreneurial behavior and performance. The opposite holds for a lack of cognitive biases, which hurts and never stimulates entrepreneurial behavior and performance.

This study examines patterns of cognitive biases of entrepreneurs instead of single biases. The study broadens the perspective on the heuristics and cognitive biases of entrepreneurs by examining patterns of biases emanating from the availability and the representativeness heuristic that make a difference for entrepreneurial behavior and performance. The study also brings the “great rationality debate” closer to the entrepreneurship field by showing that a normative rule based on statistics and probability theory does not benefit entrepreneurial behavior and performance.