Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/212452 
Erscheinungsjahr: 
2019
Schriftenreihe/Nr.: 
Bank of Finland Research Discussion Papers No. 18/2019
Verlag: 
Bank of Finland, Helsinki
Zusammenfassung: 
Overconfidence and overextrapolation are two behavioral biases that are pervasive in human thinking. A long line of research documents that such biases influence business decisions by distorting managers' expected productivity. We propose a new mechanism in which the biases change firms' precautionary motives when external financing is costly, finding that the influences of biases on investment, payouts, and refinancing are stronger for financially weaker firms. Moreover, biased and rational firms display di erential responses to economic booms and busts holding financial positions constant. Our work illustrates that managerial traits, when interacting with imperfect capital markets, drive firm dynamics in business cycles.
JEL: 
E32
G31
G32
G35
G41
Persistent Identifier der Erstveröffentlichung: 
ISBN: 
978-952-323-293-8
Dokumentart: 
Working Paper

Datei(en):
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