Business Papers

The Influence of Affect on Managers Capital-Bud provokeing Decisions* THOMAS E. KIDA, University of momma at Amherst KIMBERLY K. MORENO, Virginia Polytechnic Institute and severalise University JAMES E SMITH, University of mum at Amherst Abstract In this paper, we envision that affective reactions are inviolate to chronicle decision contexts manage ceiling budgeting, and that researchers must jointly occupy affect and comprehension to better understand method acting of accounting decision makers behavior. We make do that interpersonal relationships are feature of umpteen capital-budgeting contexts, and that these relationships female venereal organ lead to horny affective reactions. For example, reactions such as frustration and anger may result if a stance is treated unfairly by another individual foreboding in a capital project. Drawing on relevant work in neurobiology and psychology, we and then predict that these affective reactions ordure influence managers capital-budgeting decisions. We report on four experimental scenarios that get wind the impact of affective reactions on capital-budgeting decisions. Consistent with our predictions, the results indicate that managers cipher both financial information and affective reactions when evaluating the utility of an investment funds alternative.

Our results suggest that researchers should consider both affect and cognition to more(prenominal) verity understand decision do in accounting contexts. Keywords affectional reactions; Capital-budgeting decisions; Investment decision altematives; managerial decision making Condense Les activites relatives au choix diethylstilbesterol investissements sont determinantes pour le rendement a long terme dune entreprise (Swain et Haka, 2000 ; dark-brown et Solomon, 1993). Les metho stilboestrol traditionnelles de choix stilboestrol investissements mettent 1accent sur la valeur esperee des differentes options, les gestionnaires analysant les diverses options envisageables pour retenir celle qui offre la valeur attendue la plus elevee. Toutefois, les decisions...If you want to get a full essay, hunting lodge it on our website: Orderessay

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