Managerial psychology and transport firms efficiency: a stochastic frontier analysis

Sami Jarboui

Review of Managerial Science, 2016, vol. 10, issue 2, 365-379

Abstract: This paper presents an original essay that explains how managerial psychology affects the efficiency of transport firms. Stochastic frontier analysis methods are applied to our sample over a 12-year period from 2000 to 2011, where we aim to detect the potential effect of a well-documented bias in behavioral economic and finance theory: the managerial optimism bias. We initiate a debate concerning the potential role of Chief Executive Officers’ (CEO) irrationalities in explaining the inefficiency of public transport operators, such as the shortfall between the optimal production function and the observed production level. We find strong evidence of the negative impact of CEOs’ optimism bias on transport firms’ technical efficiency, meaning that managerial optimism decreases transport firms’ technical efficiency. Copyright Springer-Verlag Berlin Heidelberg 2016

Keywords: Managerial psychology; Transport firm; Technical efficiency; Stochastic frontier analysis; C14; C67; C83; D24; L92; N70; R40 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s11846-014-0149-1

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