A Review of Research on the Economic Consequences of Managers' Bounded Rationality Behaviour
Keywords:
bounded rational behavior of managers, short-sightedness of managers, risk appetite of managers, overconfidence of managersAbstract
Enterprise investment is an important content of macroeconomic policy formulation, and investment decision-making is also a very important content of business management for enterprises themselves. Managers are the main body of corporate decision-making, and their irrational behavior often has an important impact on corporate business decisions. Recognizing the importance of managers' irrational behavior, scholars have carried out a lot of theoretical research and empirical analysis from the perspectives of risk preference, overconfidence, cognitive bias, overoptimism, and conservatism, but a systematic research framework is still lacking. Based on this, this paper focuses on the short-sighted behavior of managers in irrational behavior, systematically reviews the current literature on the influence of irrational behavior of managers on business decision-making, summarizes the achievements and shortcomings of existing research, and looks forward to future research.
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Copyright (c) 2023 Ruyue Xu, Benjamin Chan Yin Fah
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Published by University Tun Abdul Razak (UNIRAZAK)
