 Behavioural biases among SME ownersH. Kent Baker, Satish Kumar and Harsh Pratap Singh International Journal of Management Practice, 2018, vol. 11, issue 3, 259-283 Abstract: People are not fully rational and their decisions suffer from errors and biases. Because behavioural finance research focuses on investor irrationality, additional attention should examine managerial decision-making. This study helps to fill this gap by addressing three objectives: (a) to identify whether owners of small and medium-sized enterprises (SMEs) in India are prone toward behavioural bias; (b) to assess the impact of these biases on their decision-making; and (c) to determine whether age, experience, education, and gender affect their propensity to exhibit behavioural biases. Using responses from 154 Indian SME owners, the study uses logistic regression to assess how demographic variables affect behavioural biases. The evidence shows that SME owners are prone to self-attribution, overconfidence, and loss aversion, but not anchoring. Differences exist in the working capital management decisions of owners prone to behavioural biases. Gender, age, and experience significantly affect the propensity to exhibit behavioural biases. Keywords: behavioural biases; overconfidence bias; self-attribution bias; loss aversion bias; anchoring bias; working capital management. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmpra:v:11:y:2018:i:3:p:259-283 Access Statistics for this article More articles in International Journal of Management Practice from Inderscience Enterprises Ltd |
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