Previous research has explored the impact of life and career experiences and circumstances on CEO managerial styles. This past research shows a monotonic or unidirectional effect of a CEO’s life experiences on risk-taking. For example, CEOs rising from difficult economic circumstances might be more risk-averse while CEOs born in prosperous circumstances might be less risk-averse. […]
Read More… from The Connection Between Disasters and Less Risk-Averse CEOs
Neuroscientific research reveals that the brain reacts differently to negative vs. positive outcomes; recent research in finance shows that market participants (including investors and investment professionals) draw different lessons from market conditions depending on whether conditions are good or poor. Professor Camelia Kuhnen of University of North Carolina’s Kenan-Flagler Business School designed an experiment involving […]
Read More… from Overreacting to Bad Financial News Can Lead to Poor Investment Decisions
