Covid-19 and its impacts on financing and investment policies
Autor(a) principal: | |
---|---|
Data de Publicação: | 2022 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | RAM. Revista de Administração Mackenzie |
Texto Completo: | http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1678-69712022000200401 |
Resumo: | Abstract Purpose: To analyze how the Covid-19 has impacted the financing, capital structure, and investment policies of Brazilian companies from a behavioral finance perspective. Originality/value: The study focused on the behavioral finance literature, Prospect Theory, Big Five Theory, and Pecking Order Theory, in order to substantiate and explain the consequences of the emotions implicit in corporate decisions and their impacts on organizations during the Covid-19 crisis. Design/methodology/approach: A questionnaire was used, containing 26 questions spread over three sections: 1. investment, financing, and capital structure decisions made in the first half of 2020; 2. personality dimensions of the respondents; and 3. sociodemographic profiles of the respondents. A total of 120 responses was obtained and the ordinary least squares econometric model was applied to identify the influence of biases on corporate decisions. Findings: The results found showed that managers’ decisions have been influenced by heuristics and biases, especially decisions on starting new projects and raising funds, as it was found that overconfidence bias has prevailed in investment and financing decisions. The study also demonstrated that the decline in sales and lost profitability of Brazilian companies due to Covid-19 have led to bold behavior by managers, as they have sought to reverse the impacts of the pandemic. |
id |
MACKENZIE-2_639e8fcac6782a68c19205abb3ea1a0b |
---|---|
oai_identifier_str |
oai:scielo:S1678-69712022000200401 |
network_acronym_str |
MACKENZIE-2 |
network_name_str |
RAM. Revista de Administração Mackenzie |
repository_id_str |
|
spelling |
Covid-19 and its impacts on financing and investment policiesCovid-19behavioral financeinvestmentfinancingcapital structureAbstract Purpose: To analyze how the Covid-19 has impacted the financing, capital structure, and investment policies of Brazilian companies from a behavioral finance perspective. Originality/value: The study focused on the behavioral finance literature, Prospect Theory, Big Five Theory, and Pecking Order Theory, in order to substantiate and explain the consequences of the emotions implicit in corporate decisions and their impacts on organizations during the Covid-19 crisis. Design/methodology/approach: A questionnaire was used, containing 26 questions spread over three sections: 1. investment, financing, and capital structure decisions made in the first half of 2020; 2. personality dimensions of the respondents; and 3. sociodemographic profiles of the respondents. A total of 120 responses was obtained and the ordinary least squares econometric model was applied to identify the influence of biases on corporate decisions. Findings: The results found showed that managers’ decisions have been influenced by heuristics and biases, especially decisions on starting new projects and raising funds, as it was found that overconfidence bias has prevailed in investment and financing decisions. The study also demonstrated that the decline in sales and lost profitability of Brazilian companies due to Covid-19 have led to bold behavior by managers, as they have sought to reverse the impacts of the pandemic.Editora MackenzieUniversidade Presbiteriana Mackenzie2022-01-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S1678-69712022000200401RAM. Revista de Administração Mackenzie v.23 n.2 2022reponame:RAM. Revista de Administração Mackenzieinstname:Universidade Presbiteriana Mackenzie (UPM)instacron:MACKENZIE10.1590/1678-6971/eramf220225.eninfo:eu-repo/semantics/openAccessAmorim,Jonathas Q.Sales,George A. W.Grecco,Marta C. Pelucioeng2022-04-20T00:00:00Zoai:scielo:S1678-69712022000200401Revistahttps://www.scielo.br/j/ram/https://old.scielo.br/oai/scielo-oai.phprevista.adm@mackenzie.br1678-69711518-6776opendoar:2022-04-20T00:00RAM. Revista de Administração Mackenzie - Universidade Presbiteriana Mackenzie (UPM)false |
dc.title.none.fl_str_mv |
Covid-19 and its impacts on financing and investment policies |
title |
Covid-19 and its impacts on financing and investment policies |
spellingShingle |
Covid-19 and its impacts on financing and investment policies Amorim,Jonathas Q. Covid-19 behavioral finance investment financing capital structure |
title_short |
Covid-19 and its impacts on financing and investment policies |
title_full |
Covid-19 and its impacts on financing and investment policies |
title_fullStr |
Covid-19 and its impacts on financing and investment policies |
title_full_unstemmed |
Covid-19 and its impacts on financing and investment policies |
title_sort |
Covid-19 and its impacts on financing and investment policies |
author |
Amorim,Jonathas Q. |
author_facet |
Amorim,Jonathas Q. Sales,George A. W. Grecco,Marta C. Pelucio |
author_role |
author |
author2 |
Sales,George A. W. Grecco,Marta C. Pelucio |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Amorim,Jonathas Q. Sales,George A. W. Grecco,Marta C. Pelucio |
dc.subject.por.fl_str_mv |
Covid-19 behavioral finance investment financing capital structure |
topic |
Covid-19 behavioral finance investment financing capital structure |
description |
Abstract Purpose: To analyze how the Covid-19 has impacted the financing, capital structure, and investment policies of Brazilian companies from a behavioral finance perspective. Originality/value: The study focused on the behavioral finance literature, Prospect Theory, Big Five Theory, and Pecking Order Theory, in order to substantiate and explain the consequences of the emotions implicit in corporate decisions and their impacts on organizations during the Covid-19 crisis. Design/methodology/approach: A questionnaire was used, containing 26 questions spread over three sections: 1. investment, financing, and capital structure decisions made in the first half of 2020; 2. personality dimensions of the respondents; and 3. sociodemographic profiles of the respondents. A total of 120 responses was obtained and the ordinary least squares econometric model was applied to identify the influence of biases on corporate decisions. Findings: The results found showed that managers’ decisions have been influenced by heuristics and biases, especially decisions on starting new projects and raising funds, as it was found that overconfidence bias has prevailed in investment and financing decisions. The study also demonstrated that the decline in sales and lost profitability of Brazilian companies due to Covid-19 have led to bold behavior by managers, as they have sought to reverse the impacts of the pandemic. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-01-01 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1678-69712022000200401 |
url |
http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1678-69712022000200401 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
10.1590/1678-6971/eramf220225.en |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
text/html |
dc.publisher.none.fl_str_mv |
Editora Mackenzie Universidade Presbiteriana Mackenzie |
publisher.none.fl_str_mv |
Editora Mackenzie Universidade Presbiteriana Mackenzie |
dc.source.none.fl_str_mv |
RAM. Revista de Administração Mackenzie v.23 n.2 2022 reponame:RAM. Revista de Administração Mackenzie instname:Universidade Presbiteriana Mackenzie (UPM) instacron:MACKENZIE |
instname_str |
Universidade Presbiteriana Mackenzie (UPM) |
instacron_str |
MACKENZIE |
institution |
MACKENZIE |
reponame_str |
RAM. Revista de Administração Mackenzie |
collection |
RAM. Revista de Administração Mackenzie |
repository.name.fl_str_mv |
RAM. Revista de Administração Mackenzie - Universidade Presbiteriana Mackenzie (UPM) |
repository.mail.fl_str_mv |
revista.adm@mackenzie.br |
_version_ |
1752128650624368640 |