search query: @author Willman, P. / total: 18
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| Author: | Willman, P. |
| Title: | Traders, managers and loss aversion in investment banking: a field study |
| Journal: | Accounting, Organizations and Society
2002 : JAN-MAR, VOL. 27:1, p. 85-98 |
| Index terms: | INVESTMENT INVESTMENT BANKS MANAGERS |
| Language: | eng |
| Abstract: | Two aspects of the imputed behaviour of traders in financial markets have recently attracted attention. First, regulatory authorities are concerned that reliance on high bonus payments is depressing profits in the investment banking sector and may expose firms employing traders to high levels of operational risk. Second, periodic publicity surrounding the concealment of losses by traders, which has led to the failure of at least one major bank, has resulted in regulatory intervention as well as public concern about malfeasance. The paper examines the management of traders in financial markets from the perspectives of agency and prospect theory. Using interview data from a sample of traders and managers in four investment banks, the paper argues that managers focus on avoiding losses rather than making gains. |
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