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

Kim, Huong Trang ORCID: https://orcid.org/0000-0002-6158-9985 and Nguyen, Quang ORCID: https://orcid.org/0000-0002-2999-194X (2020) An exploration on the nexus between managers’ present bias and corporate investment. Applied Economics Letters . pp. 1-5. ISSN 1350-4851 [Article] (Published online first) (doi:10.1080/13504851.2020.1861186)

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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.

Item Type: Article
Keywords (uncontrolled): Economics and Econometrics
Research Areas: A. > Business School > Economics
Item ID: 31738
Notes on copyright: 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
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Depositing User: Jisc Publications Router
Date Deposited: 05 Jan 2021 11:48
Last Modified: 04 Feb 2021 17:30
URI: https://eprints.mdx.ac.uk/id/eprint/31738

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