• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.5
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• pp.185-196
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• 2023

This paper investigates the effects of entrepreneurs' cognitive biases on business opportunity evaluation, given their strong entrepreneurial spirit, which is characterized by innovation, proactivity, and risk-taking. When making decisions related to business activities, entrepreneurs typically make rational judgments based on their knowledge, experience, and the advice of external experts. However, in situations of extreme stress or when quick decisions are required, they often rely on heuristics based on their cognitive biases. In particular, we often see cases where entrepreneurs fail because they make decisions based on heuristics in the process of evaluating and selecting new business opportunities that are planned to guarantee the growth and sustainability of their companies. This study was conducted in response to the need for research to clarify the effects of entrepreneurs' cognitive biases on new business opportunity evaluation, given that the cognitive biases of entrepreneurs, which are formed by repeated successful experiences, can sometimes lead to business failure. Although there have been many studies on the effects of cognitive biases on entrepreneurship and opportunity evaluation among university students and general people who aspire to start a business, there have been few studies that have clarified the relationship between cognitive biases and social networks among entrepreneurs. In contrast to previous studies, this study conducted empirical surveys of entrepreneurs only, and also conducted research on the relationship with social networks. For the study, a survey was conducted using a parallel survey method using online mobile surveys and self-report questionnaires from 150 entrepreneurs of small and medium-sized enterprises. The results of the study showed that 'overconfidence' and 'illusion of control', among the independent variables of entrepreneurs' cognitive biases, had a statistically significant positive(+) effect on business opportunity evaluation. In addition, it was confirmed that the moderating variable, social network, moderates the effect of overconfidence on business opportunity evaluation. This study showed that entrepreneurs' cognitive biases play a role in the process of evaluating and selecting new business opportunities, and that social networks play a role in moderating the structural relationship between entrepreneurs' cognitive biases and business opportunity evaluation. This study is expected to be of great help not only to entrepreneurs, but also to entrepreneur education and policy making, by showing how entrepreneurs can use cognitive biases in a positive way and the influence of social networks.

• Korea Trade Review
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• v.41 no.1
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• pp.67-90
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• 2016

This study examines whether there is any significant relation between executive compensation and future firm performance for the Korean export manufacturing small and medium-sized firms. We sorted the whole sample firms into the sub-groups of 10 deciles by firm size and the KSIC standard. We found the following empirical results. First, Korean export manufacturing small and medium-sized firms typically showed lower or even negative profitability in terms of return on equity and operating profit ratio to sales. Foreign equity ownership is very low with an average of 3.77%. Second, for the firms with higher ratio of excess executive compensation to asset had lower future firm performance. It implies that the typical owner-manager in Korean export manufacturing SMEs earns excess pay, but do not contribute much to firm performance. Third, as for future cumulative abnormal returns for future one- and three-year periods, firms with higher owner-executive pay had lower returns compared with firms with lower pay. So the stock market investors set a lower value on them. Fourth, there is a positive relation between excess executive pay and executive overconfidence, and it implies that owner-CEOs with higher pay may become overconfident, thereby lowering future firm performance somehow.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.635-645
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• 2020

This research was conducted to achieve several objectives and focus research was based on financial behavior theory and prospect theory as grounded theory e.g., investigate the financial decision-making behavior between financial and real assets investment, and confirm the relationship existing between herding behavior and overconfidence factors to the level of loss and regret aversion, and financial literacy into real assets investment decisions. The study used 220 real estate auction respondents as investor samples at the State Assets and Auction Service Office Makassar, South Sulawesi, Indonesia. Data was collected through the use of a questionnaire consisting of 23 questions to measure the variables. Moreover, the research data passed through several feasibility tests like the inner and outer modeling by Partial Least Square - Structural equation model (PLS-SEM) while the hypotheses formulated were also tested to determine the magnitude of the variable relationship. Through the use of the direct and intervening test, loss and regret aversion variables have a positive and significant effect while financial literacy variables have no significant effect. There is a slight difference in the decision-making process for real assets and financial assets investors. Investment decision making behavior in the financial assets sector requires less complicated decisions compared to the decisions related to real assets investments.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.171-176
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• 2022

The article analyzes the impact of psychological factors on the level of loans used by investors in Vietnam's real estate market. Individual investors in the Vietnamese real estate industry were surveyed using a questionnaire. A total of 320 questionnaires were collected for the survey. The author finalized 314 questionnaires after deleting those that were invalid due to too many blank cells. SPSS 25 was used to conduct quantitative research. According to the findings, Excessive Optimism (EO) is the factor that has the highest impact on the level of loan used by investors in the Vietnamese real estate market, and this relationship is positive. With an influence level of 0.261 and 0.130, the elements of herd psychology and overconfidence also have a beneficial impact on the degree of loan used by investors in Vietnam's real estate market. Fear of loss is a factor that has a negative relationship with the level of loan utilization by investors in the Vietnamese real estate market, although, with a beta coefficient of 0.134, the degree of influence is not significant. Studies on psychological aspects and human behavior in general, and investors in particular, can help investors avoid falling into these psychological traps.

• Asia-Pacific Journal of Business
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• v.13 no.3
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• pp.93-118
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• 2022

Purpose - Export marketers may have incentives to attempt real earnings management to avoid low reported earnings. Therefore, we attempted to verify the relationship between cost stickiness and real earnings management in the context of export marketing. Design/methodology/approach - Data were collected from exporters that settle-accounts in December excluding financial businesses listed on the stock market from 2015 to 2019. Multiple regression analysis were employed to analyze the data. Findings - The results showed that there is a negative relationship between cost stickiness and real earnings management. In addition, the results showed that export marketers little attempt to offset the cost inefficiency caused by the increase in expense because of cost stickiness with opportunistic management activities through real earnings management. Rather, as the level of real earnings management appears lower, exporters showing cost stickiness are expected to report management performance based on actual marketing. Furthermore, exporters with a high level of managerial centrality or high managerial overconfidence little attempt to offset cost inefficiency caused by cost stickiness with real earnings management activities. Research implications or Originality - Our study is the first to investigate the quality of earnings information of exporters with cost stickiness. Based on the results, we suggested efficient marketing strategies for exporters.

• Journal of the Korea Society of Computer and Information
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• v.25 no.7
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• pp.159-165
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• 2020

With respect to the cause of asymmetric cost behavior, there are two streams of the literature. One stream focused on effect of managerial expectation and the other explained using agency system. In this study, we aim to investigate the determinants of asymmetric cost behavior in these streams. We first examine the impact of managerial overconfidence and optimistic bias on asymmetric cost. We also examine ownership ratio as a proxy of the quality of corporate governance effects on asymmetric cost. The results are as follows. First, firms have the anti-sticky asymmetric cost behavior. Second, we find that the firms with managerial optimistic bias mitigate the degree of asymmetric cost. This finding implies that managerial optimism is a factor that alters asymmetric cost behavior. Third, the degree of asymmetric cost is weaker in case of firms with higher manager's ownership. This result provides an important empirical evidence for understanding the role of corporate governance in cost behavior.

• Journal of The Korean Association For Science Education
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• v.20 no.2
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• pp.214-220
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• 2000

The difference (bias) between self-efficacy and chemistry problem-solving ability was investigated for 96 (male: 48, female: 48) high school students. A self-efficacy instrument was administered, which asked the confidence in solving algorithmic and conceptual problems successfully. Their chemistry problem-solving ability was then assessed with 10 algorithmic and 10 conceptual problems as same in the self-efficacy instrument. Although students had higher scores in the algorithmic problems, no significant difference was found in the self-efficacy to solve the two different forms of problems. Therefore, the bias scores in the conceptual problems were higher than those in the algorithmic problems. Two-way ANOVA results for the bias in the algorithmic problems revealed a significant interaction between gender and the previous achievement level. Analysis of simple effects indicated that the bias scores of high-achieving boys were significantly higher than those of high-achieving girls. While most high-achieving boys were in the overconfident category, high-achieving girls were more likely to be in the underconfident category.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.4 no.1
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• pp.67-88
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• 2009

The purpose of this study IS to suggest the failure factors and the success factors of technology-based startups(TBS). This study surveyed 327 startup companys on the general obstacles of starting business and the entrepreneurship policy of the Government. The failure factors of TBS are 1) overconfidence of TBS in their technology, 2) lack of cost management, 3) lack of concentration on the sales revenue of their activies, 5) many unplanned challenges, and 5) lack of strategic decision. And the success factors of TBS are 1) CEO's leadership having a clear business concept, 2) development of innovative products and services, 3) flat and flexible organization structure, 4) leveraging outside business resources and networks, and 5) strengthening the human resources by the hybrid agent.

• Journal of Korean Academy of Nursing
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• v.25 no.3
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• pp.562-580
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• 1995

This research was an attempt to make it possible to provide nursing care and health education meet- ing the need not of care givers but of patients by identifying the nature of patients' self regulation experiences. The specific objective of this study was : 1) to explore self regulation experiences of patients with adult disease. The phenomenological approach in qualitative studies is used to serve this purpose. Colaizzi's method is used for the phenomenological analysis of the data in this study, which were collected from 25 patients hospitalized in the internal medical ward and oriental medical ward of a Seoul hospital, suffering from adult disease such as hypertension, arteriosclerosis and diabetes mellitus. The research was conducted over a period of March to September, 1994. The investigator conducted participated observations and in-depth unstructured interviews which were audiotaped under the permission of patients. The investigator read the data repeatedly to identify and categorize significant statements, formulating meanings, themes and theme clusters. The result is categorized as follows : Self regulation activities, their barriers and predisposing factors of a disease. Thirteen theme clusters of self regulation activities related to health identified were. “maintaining diet regimen”, “maintaining exercise regimen”, “maintaining medication regimen”, “maintaining oriental medical regimen”, “maintaining health monitoring regimen”, “maintaining self effort”, “maintaining religious life”, “maintaining social sup-port systems”, “maintaining peaceful mind”, “maintaining moderation in life”, “maintaining sincere attitude in life”, “maintaining natural life”, and “maintaining folk remedy” This findings confirm the fact that self regulation is complicatedly and diversely influenced by oriental medicine and folk remedy, and Korean traditional ideas melted in Confucianism, Buddhism, Taoism and Shamanism, and modern medical care and western culture. Seven theme clusters of self regulation barriers identified were : "lack of knowledge and self aware-ness", "lack of social supports", "lack of awareness of need in continuous regimen and treatment", "dissatisfaction with hospital and health care provider", "lack of self management ", "lack of will to combat illness", and "overconfidence in folk remedy" Four theme clusters of predisposing factors of a disease were : "cumulation of stressors", "fatalism", "careless life style", and "family history". In conclusion, this. study will prove helpful not only in understanding clients in light of our traditional culture but also in providing them with the kind of nursing care and health education satisfying their demands and particularly cultural needs.

• Human Ecology Research
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• v.56 no.5
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• pp.447-460
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• 2018

This study determines whether certain cognitive biases (i.e., time preference, goal attainment expectation, unrealistic optimism, and overconfidence) and a specific negative mood-state (i.e., anxiety) influence credit misuse among college students. Data were collected from fourth-year college students (N=1,146), all of whom attended the same university in the southwest United States. Hierarchical multiple regression analyses and moderator analyses were employed to test the research hypotheses. Results showed that specific cognitive biases and anxiety were directly associated with credit misuse. We found that the longer goal attainment was delayed, the greater the students' unrealistic optimism concerning future income; in addition, the more overconfident they became with respect to financial knowledge, the more frequently they engaged in credit misuse. The study also showed that the higher a student's level of anxiety, the more often that students engaged in credit misuse. We also found that cognitive bias factors and anxiety interact to influence credit misuse. Anxiety interacted with time preference and unrealistic optimism such that present-oriented time preference was negatively related to credit misuse while optimism toward future income was positively related to credit misuse, but only for students with high anxiety levels. The findings of this study are discussed in the context of understanding and preventing irresponsible financial behavior among young adults.