Leader's cognitive process and investment decisions: evidence from the U.S.
Loading...
Date
2024-03-28
Authors
Guo, Xiaoli
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
This study addresses how a leader's cognitive process affects a firm's strategic decision in investment made by the U.S. publicly listed companies. Findings indicate that when sales are below aspirations, decision-makers are more likely to make investments in fixed assets and innovation only in the long run, but they are less likely to invest in innovation when a firm's accounting profitability is below aspirations. Consistent results are found in robustness tests, and both theoretical and practical implications are discussed.
Description
Keywords
Leadership, Cognitive process, Investment decisions