Search results
1 – 10 of over 2000Yangyi Zeng and Thomas Herzfeld
Mental budgeting, as a part of mental accounting theory, is expected to impact a household's budgetary management in terms of expenses. The purpose of this paper is to study…
Abstract
Purpose
Mental budgeting, as a part of mental accounting theory, is expected to impact a household's budgetary management in terms of expenses. The purpose of this paper is to study whether and how mental budgeting can explain differences in farmers' reactions to different incentives of low-toxicity pesticide use.
Design/methodology/approach
Based on data from a survey of 393 vegetable farmers in the Sichuan Province, this analysis, using a Likert Scale approach, first explores whether farmers utilize mental budgeting. Secondly, using a Probit model, this paper analyzes how mental budgeting affects farmers' intentions to switch to low-toxicity pesticide use when faced with different incentives.
Findings
The results show that the majority of farmers categorize agricultural inputs into different groups and that 26.46% of the investigated farmers utilize mental budgeting for pest control practices. In addition, farmers who utilizing mental budgeting report a higher willingness to switch to low-toxicity pesticides when they're presented with a specific subsidy. Furthermore, if offered a price premium for quality, the willingness to switch to low-toxicity pesticides for farmers utilizing mentally budget is lower compared to other farmers.
Originality/value
This paper examines the existence of mental budgeting among farmers. It provides a better understanding of how farmers categorize agricultural inputs and their mental mechanisms with respect to agricultural expenses. Finally, this paper is the first to study the effects of mental budgeting on farmers' reactions to different incentives aimed at stimulating the adoption of low-toxicity pesticides.
Details
Keywords
Renu Isidore R. and Christie P.
The purpose of this paper is to test the relationship between the annual income earned by the investors and eight behavioural biases exhibited by the investors such as mental…
Abstract
Purpose
The purpose of this paper is to test the relationship between the annual income earned by the investors and eight behavioural biases exhibited by the investors such as mental accounting, anchoring, gambler’s fallacy, availability, loss aversion, regret aversion, representativeness and overconfidence.
Design/methodology/approach
The relationship is derived based on a questionnaire survey conducted on 436 secondary equity investors residing in Chennai, India.
Findings
Analysis of variance test was performed on the normalised and non-normalised version of the biases divided in terms of the annual income earned by the investor. The test found that for the significant biases except the overconfidence bias, the investors with higher annual income were less prone to the biases when compared to investors with lower annual income. On the other hand, with respect to the overconfidence bias, the investors with higher annual income were prone to exhibit overconfidence bias when compared to the investors with lower annual income. Correlation analysis showed that the investors with high annual income were more likely to exhibit higher overconfidence bias but lower representativeness, loss aversion, availability and mental accounting biases.
Originality/value
A contribution in the financial and economic front which would benefit the financial advisors to now consider the income earned by the clients as an important factor while giving financial advice to the clients and while guiding them about the biases they are prone to exhibit.
Details
Keywords
Zack Enslin, John Hall and Elda du Toit
The emerging business partner role of management accountants (MAs) results in an increased requirement of MAs to make business decisions. Frame dependence cognitive biases…
Abstract
Purpose
The emerging business partner role of management accountants (MAs) results in an increased requirement of MAs to make business decisions. Frame dependence cognitive biases regularly influence decisions made in conditions of uncertainty, as is the case in business decision-making. Consequently, this study aims to examine susceptibility of MAs to frame dependence bias.
Design/methodology/approach
A survey was conducted among an international sample of practising MAs. The proportion of MAs influenced by framing bias was analysed and compared to findings in other populations. Logistic regression was then used to determine whether MAs who exhibit a higher preference for evidence-based (as opposed to intuitive) decision-making are more susceptible to framing bias.
Findings
Despite a comparatively high preference for evidence-based decision-making, the prevalence of framing bias among MAs is comparable to that of other populations. A higher preference for evidence-based decision-making was found to only be associated with higher susceptibility to endowment effect bias.
Originality/value
To the best of the authors’ knowledge, this is the first study to comprehensively examine framing bias for MAs as a group of decision-makers. Additionally, this study’s sample consists of practising MAs, and not only students.
Details
Keywords
Anshita Bihari, Manoranjan Dash, Sanjay Kumar Kar, Kamalakanta Muduli, Anil Kumar and Sunil Luthra
This study systematically explores the patterns and connections in the behavioural bias and investment decisions of the existing literature in the Scopus database published…
Abstract
Purpose
This study systematically explores the patterns and connections in the behavioural bias and investment decisions of the existing literature in the Scopus database published between 2007 and 2022. The purpose of this paper is to address this issue.
Findings
In the article it was determined which contributed documents were the most significant in this particular subject area along with the citations, publications and nations that were associated with them. The bibliographic coupling offered more in-depth insights into the papers by organizing them into distinct groups. The pattern of the publications has been brought to light, and the connection between different types of literature has provided insight into the path that future studies should take.
Research limitations/implications
This study considered only articles from the Scopus database. Future studies can be based on papers that have been published in other databases.
Originality/value
The outcome of this study provides valuable insights into the intellectual structure and biases of investors and adds value to existing knowledge. This review provides a road map for the future trend of research on behavioural bias and investment decisions.
Details
Keywords
This article conceptualises how the economic well-being of an entrepreneurial household affects its members' mental accounting process to establish its affordable loss for a…
Abstract
Purpose
This article conceptualises how the economic well-being of an entrepreneurial household affects its members' mental accounting process to establish its affordable loss for a plunge decision.
Design/methodology/approach
The article used research literature to analyze the resources available for entrepreneurial endeavours against a household's ability to maintain acceptable minimum material living standards, juxtaposing income and wealth against competing consumption and investment opportunities.
Findings
Mentally accounting for whether household resources can meet minimum material living standards is central to entrepreneurs' ability to raise affordable loss and decide to invest in a new venture. The article proposes that entrepreneurial households establish affordable loss by availing their money exceeding that required to maintain acceptable minimum material living standards. In low-income households, the author assumes that members are not employed and can thus avail their time (versus money) towards affordable loss.
Originality/value
Economic well-being introduces mental accounts of income and wealth and a hedonic reference outcome in the material living standards of households required to meet basic needs. The article introduces the tension entrepreneurial households face between using their income and wealth towards investing in a new business and maintaining their material living standards. It introduces the idea that a loss can be “affordable” according to an entrepreneurial household's ability to remain above its acceptable minimum material living standard. This view prompts scholars to consider a household unit of analysis and avoid assuming an entrepreneur makes the plunge decision in isolation.
Details
Keywords
Hajer Chenini and Anis Jarboui
A separate study of the different behavioral biases does not allow for a full understanding of the complexity and stability of the heterogeneity of beliefs. Therefore, through a…
Abstract
Purpose
A separate study of the different behavioral biases does not allow for a full understanding of the complexity and stability of the heterogeneity of beliefs. Therefore, through a more global view of these anomalies, the authors wish to show that they can converge on a single concept, which is the heterogeneity of beliefs.
Design/methodology/approach
It is therefore essential to stress that the importance of this study is mainly reflected in the methodological approach used in the construction and analysis of the map and not only in the results achieved. This contribution states that structural analysis, as a means of building the cognitive map, can facilitate the task of investors and other decision-makers, in the identification and analysis of the heterogeneity of beliefs that can therefore guide investors' strategy in decision-making.
Findings
The authors have studied the behavior of the investor and its way of interpreting the information and the authors have emphasized the value of studying the concept of heterogeneity of beliefs in its complexity. So that part of the work seems to be relevant and crucial to filling, if you will, that void. In this sense, the authors have shown that behavioral abnormalities are multidimensional concepts: “self-deception”, “cognitive bias”, “emotional bias” and “social bias”.
Originality/value
In particular, this article will aim to achieve the objective of proposing a model for measuring the heterogeneity of beliefs. Thus, the authors want to show that the heterogeneity of beliefs can be measured directly through the different behavioral anomalies.
Details
Keywords
Jérôme Boutang and Michel De Lara
In a modern world increasingly perceived as uncertain, the mere purchase of a household cleaning product, or a seemingly harmless bottle of milk, conveys interrogations about…
Abstract
Purpose
In a modern world increasingly perceived as uncertain, the mere purchase of a household cleaning product, or a seemingly harmless bottle of milk, conveys interrogations about potential hazards, from environmental to health impacts. The main purpose of this paper is to suggest that risk could be considered as one of the major dimensions of choice for a wide range of concerns and markets, alongside aspiration/satisfaction, and tackled efficiently by mobilizing the recent findings of cognitive sciences, neurosciences and evolutionary psychology. It is felt that consumer research could benefit more widely from psychological and evolutionary-grounded risk theories.
Design/methodology/approach
In this study, some 50 years of marketing management literature, as well as risk-specialized literature, was examined in an attempt to get a grasp of how risk is handled by consumer sciences and of whether they make some use of the most recent academic works on mental biases, non-mainstream decision-making processes or evolutionary roots of behavior. We then tested and formulated several hypotheses regarding risk profiles and preferences in the sector of insurance, by participating in an Axa Research Fund–Paris School of Economics research project.
Findings
It is suggested that consumer profiles could be enriched by risk-taking attitudes, that risk could be part of the “reason why” of brand positioning, and that brand, as well as public policy communication, could benefit from a targeted use of risk perception biases.
Originality/value
This paper proposes to apply evolutionary-based psychological concepts to build perceptual maps describing people and consumers on both aspiration and risk attitude axis, and to design communication tools according to psychological research on message framing and biases. Such an approach mobilizes not only the recent findings of cognitive sciences and neurosciences but also the understanding of the roots of risk attitudes and perception. Those maps and framing could probably be applied to many sectors, markets and public issues, from commodities to personal products and services (food, luxury goods, electronics, financial products, tourism, design or insurance).
Details
Keywords
Financial literacy is a crucial element of financial decision-making, exerting significant influence on the behaviour of individual investors, while making budgetary, house…
Abstract
Purpose
Financial literacy is a crucial element of financial decision-making, exerting significant influence on the behaviour of individual investors, while making budgetary, house financing, stock investing and retirement planning decisions. So, the purpose of this research is to determine the relationship between financial literacy and behavioural biases of individual investors in Pakistan.
Design/methodology/approach
In this research paper, a sample of 300 observations was obtained through questionnaires from individual investors residing in Lahore and invested in Pakistan Stock Exchange. The data obtained, was passed through Cronbach’s Alpha and Exploratory Factor Analysis (EFA). The hypothesis developed for the research was tested by Pearson’s Chi-square and Ordinal Regression Analysis.
Findings
The hypothesis testing of the research concluded that there is a negative association between financial literacy and behavioural biases of individual investors. So, it means; with an increase in level of financial literacy, the likelihood of investor facing behavioural biases reduces. It also appeared that male respondents have more financial literacy than female respondents
Originality/value
Previous studies in the field of finance, identified different factors causing the financial behaviour of individual investor of Pakistan, and also focused on level of financial literacy in Pakistan, but these studies have not emphasized the crucial relationship between financial literacy and behavioural biases of individual investors. Thus, the unique empirical analysis developed in this paper has accentuated the financial literacy as a factor that mitigates behavioural biases of individual investor.
Details
Keywords
Raphaela Stadler, Trudie Walters and Allan Stewart Jepson
This paper explores mental wellbeing in the events industry. We argue that mental wellbeing is often difficult to achieve in the stressful and deadline-driven events industry, and…
Abstract
Purpose
This paper explores mental wellbeing in the events industry. We argue that mental wellbeing is often difficult to achieve in the stressful and deadline-driven events industry, and that better awareness and understanding of specific actions for employees to flourish at work is needed.
Design/methodology/approach
We used in-depth semi-structured interviews with event professionals in the UK to investigate their individual coping strategies. To contextualise, we used the Five Ways to Wellbeing framework as an analytical tool.
Findings
Our findings reveal that event professionals currently unconsciously engage in a variety of actions to maintain and enhance their mental wellbeing outside of work, but not at work. Out of the Five Ways to Wellbeing, specific actions to Connect, Be Active and Take Notice were most important to event professionals. The remaining two ways, Keep Learning and Give, were also identified in the data, although they were less prominent.
Practical implications
We present recommendations for event professionals to more consciously engage with the Five Ways to Wellbeing and for employers to develop mental wellbeing initiatives that allow their employees to flourish.
Originality/value
In event studies, the Five Ways to Wellbeing have thus far only been applied to event attendees, volunteers and the local community. Our paper highlights how event employees can also benefit from engaging in some of the actions set out in the framework to enhance their mental wellbeing at work.
Details
Keywords
Justice Mensah, Kwesi Amponsah-Tawiah and Nana Kojo Ayimadu Baafi
This study aims to extend the literature on psychological contracts, employee mental health, self-control and equity sensitivity among employees in Ghana.
Abstract
Purpose
This study aims to extend the literature on psychological contracts, employee mental health, self-control and equity sensitivity among employees in Ghana.
Design/methodology/approach
Data for this study came from a sample of 484 employees from an organisation in the telecommunication sector of Ghana. The details of the study were discussed with employees after which they were given the choice to participate in the study.
Findings
The present study found that psychological contract breach is directly associated with mental health and indirectly related to mental health through equity sensitivity and self-control.
Originality/value
The findings suggest that psychological contracts are important aspects of the employment relationship that could be used to enhance employee mental health. Furthermore, enhancing employees’ self-control and resolving issues of individuals high on equity sensitivity are effective ways that organisations can deploy to sustain mental health in the face of psychological contract breaches.
Details