Emotional biases and their relationship to working capital management Analytical study of a sample of decision makers in the Iraqi Stock Exchange
Keywords:emotional biases, Working capital, Iraq Stock Exchange
This research aims to understand and clarify the behavior of decision makers in companies who participate in the financial and administrative decision-making process for managing working capital. How can these biases affect working capital management decisions? The results show that emotional biases clearly appeared on the managers of Iraqi companies listed on the Iraq Stock Exchange and on their management decisions related to working capital management. Therefore, it is necessary to avoid the impact of these biases by knowing The psychological effects of these biases on financial and management decisions Emotional biases were tested on (103) of managers with influence on financial and administrative decisions related to working capital management and the company as a whole, based on the descriptive and inferential method of the sample and hypotheses of the study by using two statistical tools represented by the correlation matrix (Pearson correlation coefficients) and regression analysis The simple
- Pompian , Michael M. " Behavioral Finance and wealth management " . John Wiley. & Sons', 2006 .
- SHIM, JAE K. & SIEGEL, JOEL G. ‘’ Financial Management’’ , The McGraw-Hill Companies, 3th Edition,2007.
- Otto, Philipp Erik, "Cognitive Finance: Behavioral Strategies of Spending, Saving and Investing", Vova Science Publisher, Inc., New York, 2010.
- Ackert , Lucy F . & Deaves , Richard " Behavioral Finance : psychology Decision – Making and Markets " . south – western . 2010 .
- Al-Dahan,Noor . (2019)’’ Effect of Cognitive and Emotional Biases on Investor Decisions: An Analytical Study of the Iraq Stock Exchange’’ , International Journal of Innovation, Creativity and Change , Volume 9, Issue 10.
- Godswill,Osuma& Ailemen, Ikpefan &Osabohien, Romanus &Chisom, Ndigwe & Pascal, Nkwodimmah (2018) ‘’ Working capital management and bank performance: empirical research of ten deposit money banks in Nigeria’’ , Banks and Bank Systems, Volume 13, Issue 2.
- Korent, Dina & Orsag, Silvije (2018)’’ The Impact of Working Capital Management on Profitability of Croatian Software Companies’’ , Zagreb International Review of Economics & Business, Vol. 21, No. 1, pp. 47-65.
- Hofmann,Erik & Kotzab,Herbert (2010)’’ A SUPPLY CHAIN-ORIENTED APPROACH OF WORKING CAPITAL MANAGEMENT’’ , JOURNAL OF BUSINESS LOGISTICS, Vol. 31, No. 2.
- Ismail ,Rehana (2017)‘’ Working Capital – An Effective Business Management Tool’’ International Journal of Humanities and Social Science Invention ,Vol 6 Issue 3,PP.12-23.
- Haider,Salwa& Siddiqui&Danish Ahmed (2020) ‘’A Behavioral Finance Approach to Working Capital Management in Context of Pakistani Firms ‘’Available at SSRN: https://ssrn.com/abstract=3683103 or http://dx.doi.org/10.2139/ssrn.3683103
- Vuorikari ,Maija ’’Optimizing Working Capital Management from Processes Perspective ‘’ Master’s Thesis 2012.
- Nikolic, Jelena (2018) ‘’BIASES IN THE DECISION-MAKING PROCESS AND POSSIBILITIES OF OVERCOMING THEM’’ Economic Horizons, Vol 20.N1.
- Alvarez, Thiago & Sensini,Luca &Vazquez,Maria (2020) ‘’ Working Capital Management and Profitability: Evidence from an Emergent Economy’’, International Journal of Advances in Management and Economics .
-Wright, Terry, "The Top Investor Behavioral Biases", National Bank Financial, www.terrywright.ca, 2012.
How to Cite
Copyright (c) 2023 أ.د.م. نور صباح الدهان ، الباحثة مريم امير الكُردي
This work is licensed under a Creative Commons Attribution 4.0 International License.
Permit others to distribute and copy the manuscript, to create extracts, abstracts, and other revised versions, adaptations, or derivative works of or from the manuscript (such as a translation), to include in a collective work, to text or data mine the article, even for commercial purposes, as long as they credit the author(s), do not represent the author as endorsing their adaptation of the article, and do not modify the article in such a way as to damage the author''''s honor or reputation. Further details are found at Creative Commons Attribution 4.0 International (CC BY 4.0)