Subjective Well-Being of Corporate Managers And Its Impact on Stock Market Volatility and Financial Stability During the Covid-19 Pandemic in Poland: Agent-Based Model Perspective

Marcin Rzeszutek (), Jorgen Vitting Andersen (), Adam Szyszka () and Szymon Talaga ()
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Marcin Rzeszutek: Faculty of Psychology, University of Warsaw, Poland
Jorgen Vitting Andersen: CNRS, Centre d'Economie de la Sorbonne, https://centredeconomiesorbonne.cnrs.fr
Adam Szyszka: Warsaw School of Economics, Collegium of World Economy, Warsaw, Poland
Szymon Talaga: The Robert Zajonc Institute for Social Studies, University of Warsaw, Poland

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: This study aims at connecting the behavioral corporate finance (micro level) perspective and complexity theory along with agent-based modelling in order to analyze the impact of selected behavioral managerial factors on aggregated data related to the financial market stability (macro level). Specifically, we want to explore whether subjective well-being (SWB) of corporate managers (CEOs) impacted their business decisions during the Covid-19 pandemic, and how it may be related to volatility of stock prices and the issue of financial stability during this critical period. Our study is based on a survey of 255 managers of companies listed on the Warsaw Stock Exchange in Poland over the period . Using the results of this survey, we build an agent-based model (ABM) calibrated for the specific case of Poland to investigate how decision making of CEOs, stemming from their SWB, influence the stock prices and selected financial market dynamics indicators. The results of our study indicate that the excess volatility of stock prices may be a function of changes of SWB of managers, which in turn could lead to some crashes on the macro level with respect to financial stability

Keywords: subjective well-being; CEO; Covid-19; agent-based model (search for similar items in EconPapers)
Pages: 19 pages
Date: 2023-12
New Economics Papers: this item is included in nep-cmp, nep-eur, nep-hap, nep-hme and nep-tra
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http://mse.univ-paris1.fr/pub/mse/CES2023/23017.pdf (application/pdf)
https://shs.hal.science/hal-04364100

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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:23017

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