search query: @indexterm financial management / total: 951
reference: 15 / 951
| Author: | Fennema, M.G. Perkins, J.D. |
| Title: | Mental budgeting versus marginal decision making: Training, experience and justification effects on decisions involving sunk costs |
| Journal: | Journal of Behavioral Decision Making
2008 : JUL, VOL. 21:3, p. 225-239 |
| Index terms: | decision making sunk costs financial management accountants students |
| Freeterms: | mental budgeting justification |
| Language: | eng |
| Abstract: | This study examines the effects of relevant academic training, financial experience (here as: expr.) and decision justification (as: justf.) on investment decisions including sunk costs (here as: s-cts). Based on data collected on both the process (strategy) and outcome of the decisions, it is indicated that practicing Certified Public Accountants (CPAs), Masters of Business Administration students (MBAs) and undergraduate (here as: u-g.) accounting students perform better than u-g. psychology students. The level of training was found to be positively correlated with performance, while the level of expr. was not. Justf. was found to improve decisions only for those participants with significant work expr. (CPAs and MBAs). Strategies were examined and surprisingly it was found that economically rational decisions can be made even if s-cts. are not ignored. |
SCIMA