Question
Psychological research has indicated that there are biases in decision-making. These biases can arise in making various corporate financial decisions such as merger and acquisition,
Psychological research has indicated that there are biases in decision-making. These biases can arise in making various corporate financial decisions such as merger and acquisition, dividend policy, capital budgeting, capital structure, initial public offering etc. As a high rank personnel in an organization you should be aware of biases existence, their effect on decisions and how to avoid them. REQUIRED: As a manager with the knowledge of behavioural finance, evaluate the effects of behavioural biases in corporate financial decision making and provide ways of avoiding or mitigating them.
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