Cognitive antecedents of family business bias in investment decisions: A commentary on 'Risky decisions and the family firm bias: An experimental study based on prospect theory

Lude and Prügl explored “family business bias,” a cognitive tendency where the family nature of a firm can often reduce investors’ perceived risk in investments. As a result, investors would display lower risk-avoidance in the gain domain and reinforced risk-seeking in the loss domain. We expanded t...

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Main Authors: FANG, H., SIAU, Keng, MEMILI, E., DOU, J.
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2018
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Online Access:https://ink.library.smu.edu.sg/sis_research/9367
https://ink.library.smu.edu.sg/context/sis_research/article/10367/viewcontent/fang_et_al_2018_cognitive_antecedents_of_family_business_bias_in_investment_decisions_a_commentary_on_risky_decisions.pdf
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spelling sg-smu-ink.sis_research-103672024-10-25T09:26:46Z Cognitive antecedents of family business bias in investment decisions: A commentary on 'Risky decisions and the family firm bias: An experimental study based on prospect theory FANG, H. SIAU, Keng MEMILI, E. DOU, J. Lude and Prügl explored “family business bias,” a cognitive tendency where the family nature of a firm can often reduce investors’ perceived risk in investments. As a result, investors would display lower risk-avoidance in the gain domain and reinforced risk-seeking in the loss domain. We expanded the authors’ work by introducing four cognitive factors (anchoring, representativeness, stereotype heuristic, and information availability) that can explain the underlying mechanisms behind the prevalence of “family business bias” and other cognitive misperceptions surrounding family businesses when it comes to investment decisions. 2018-09-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/sis_research/9367 info:doi/10.1177/1042258718796073 https://ink.library.smu.edu.sg/context/sis_research/article/10367/viewcontent/fang_et_al_2018_cognitive_antecedents_of_family_business_bias_in_investment_decisions_a_commentary_on_risky_decisions.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University family business cognitive bias Databases and Information Systems Management Information Systems
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic family business
cognitive bias
Databases and Information Systems
Management Information Systems
spellingShingle family business
cognitive bias
Databases and Information Systems
Management Information Systems
FANG, H.
SIAU, Keng
MEMILI, E.
DOU, J.
Cognitive antecedents of family business bias in investment decisions: A commentary on 'Risky decisions and the family firm bias: An experimental study based on prospect theory
description Lude and Prügl explored “family business bias,” a cognitive tendency where the family nature of a firm can often reduce investors’ perceived risk in investments. As a result, investors would display lower risk-avoidance in the gain domain and reinforced risk-seeking in the loss domain. We expanded the authors’ work by introducing four cognitive factors (anchoring, representativeness, stereotype heuristic, and information availability) that can explain the underlying mechanisms behind the prevalence of “family business bias” and other cognitive misperceptions surrounding family businesses when it comes to investment decisions.
format text
author FANG, H.
SIAU, Keng
MEMILI, E.
DOU, J.
author_facet FANG, H.
SIAU, Keng
MEMILI, E.
DOU, J.
author_sort FANG, H.
title Cognitive antecedents of family business bias in investment decisions: A commentary on 'Risky decisions and the family firm bias: An experimental study based on prospect theory
title_short Cognitive antecedents of family business bias in investment decisions: A commentary on 'Risky decisions and the family firm bias: An experimental study based on prospect theory
title_full Cognitive antecedents of family business bias in investment decisions: A commentary on 'Risky decisions and the family firm bias: An experimental study based on prospect theory
title_fullStr Cognitive antecedents of family business bias in investment decisions: A commentary on 'Risky decisions and the family firm bias: An experimental study based on prospect theory
title_full_unstemmed Cognitive antecedents of family business bias in investment decisions: A commentary on 'Risky decisions and the family firm bias: An experimental study based on prospect theory
title_sort cognitive antecedents of family business bias in investment decisions: a commentary on 'risky decisions and the family firm bias: an experimental study based on prospect theory
publisher Institutional Knowledge at Singapore Management University
publishDate 2018
url https://ink.library.smu.edu.sg/sis_research/9367
https://ink.library.smu.edu.sg/context/sis_research/article/10367/viewcontent/fang_et_al_2018_cognitive_antecedents_of_family_business_bias_in_investment_decisions_a_commentary_on_risky_decisions.pdf
_version_ 1814047935795560448