How Do Behavioral Aspects Affect the Financial Decisions of Managers and the Competitiveness of Enterprises?
Mariana Sedliacikova, Maria Moresova, Patrik Alac, Josef Drabek
Keywords:
financial decision-making, behavioral aspects, managers, competitiveness
Abstract:
Decisions of financial managers can improve the competitiveness of the enterprise. Decisions are
affected not only by knowledge and experience but also by emotional and cognitive deviations in
behavior. Considering the role of competitiveness, this paper investigated whether an effect of
behavioral factors on the financial decision-making of managers can be shown, and if so, to what
degree. The aim of the paper is to propose a concept, the essence of which is to determine the key
systematically-occurring errors in the financial decision-making process of managers rising from
the effect of the human factor as a basis of prevention of incorrect financial decisions. The issue
was mapped in the territory of the Visegrad Four (V4) by means of an empirical survey by the
method of a questionnaire. By evaluating the research, the methodology of statistical hypotheses
testing by measures of association was used (contingency coefficients - Cramer’s contingency
coefficient V and Pearson’s contingency coefficient C) and Pearson’s chi-square test. The results
of the research allow the formulation of conclusions that expand current knowledge in the field
of research. The main results of the conducted research are that the key behavioral aspects
(cognitive, psychological and emotional) that influence the financial decision-making process of
business managers in the V4 countries are love, sadness and hate. A concept was created from
the achieved results, the application of which in the enterprises of the V4 countries can help
managers avoid making improper financial decisions which could have a negative impact on the
financial health and competitiveness of an enterprise.
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 How Do Behavioral Aspects Affect the Financial Decisions of Managers and the Competitiveness of Enterprises? [PDF file] [Filesize: 1.2 MB]
 10.7441/joc.2021.02.06
Sedliacikova, M., Moresova, M., Alac, P., & Drabek, J. (2021). How Do Behavioral Aspects Affect the
Financial Decisions of Managers and the Competitiveness of Enterprises? Journal of Competitiveness,
13(2), 99–116. https://doi.org/10.7441/joc.2021.02.06
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