An exploration on the nexus between managers’ present bias and corporate investment

Article

Kim, H. and Nguyen, Q. 2022. An exploration on the nexus between managers’ present bias and corporate investment. Applied Economics Letters. 29 (2), pp. 150-154. https://doi.org/10.1080/13504851.2020.1861186
TypeArticle
TitleAn exploration on the nexus between managers’ present bias and corporate investment
AuthorsKim, H. and Nguyen, Q.
Abstract

This study aims to explore the role of top manager’s present bias as a main driver of corporate investment. For this purpose, we embed an experiment in a firm-level panel survey with a sample of top managers from 623 textile and garment firms in Vietnam. The experiment enables us to elicit present bias for each individual manager. We find that firms led by managers with a greater level of present bias are more likely to have a lower investment. There also exists evidence that the effect of managers’ present bias on corporate investment is stronger for SMEs than for large firms.

KeywordsEconomics and Econometrics
PublisherTaylor & Francis (Routledge)
JournalApplied Economics Letters
ISSN1350-4851
Electronic1466-4291
Publication dates
Online11 Dec 2020
Print19 Jan 2022
Publication process dates
Deposited05 Jan 2021
Accepted25 Nov 2020
Output statusPublished
Accepted author manuscript
Copyright Statement

This is an Accepted Manuscript of an article published by Taylor & Francis in Applied Economics Letters on 11 Dec 2020, available online: http://www.tandfonline.com/10.1080/13504851.2020.1861186

Digital Object Identifier (DOI)https://doi.org/10.1080/13504851.2020.1861186
LanguageEnglish
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