This paper explores the impact of retailers' corporate social responsibility (CSR) and manufacturers' overconfidence on manufacturers' carbon reduction in sustainable supply chains. We analyze the profits of manufacturers and retailers under different scenarios and explore the social welfare and environmental impacts under CSR. Our results suggest that retailers' CSR and manufacturers' overconfidence contribute positively to promoting carbon mitigation and reducing environmental impacts under certain conditions. However, with increasing CSR and manufacturer overconfidence levels, manufacturers are more likely to lead to worse environmental impacts and carbon emission reduction. In addition, we show that when the manufacturer's overconfidence level is high, manufacturers and retailers are more profitable and contribute to carbon emission reductions in the manufacturer without overconfidence (retailer without CSR) scenario. Moreover, we find that firms have the higher potential to capture optimal overall social welfare in the presence of retailers with CSR and manufacturer overconfidence.

The relationship between behavioural characteristics (both rational and irrational measures) and capital structure determinants has been empirically validated. This study examines the influence of the behavioural traits of overconfidence and optimism on capital structure determinations by IDX-listed public Indonesian firms’ (Tbks) management. This is statistically tested via a comprehensive hypothesis modelling construct that includes empirically validated capital structure determinants (market timing, profitability, tangibility, size and their impacts on stock price). Panel regression PLS and path analysis were performed on stock price data and financial metrics extracted from the 2013–2020 financial statements of 55 Tbks from the LQ-45 and Kompas-100 stock indices. This study found that Optimism, Market Timing and Adjusted Debt on Market Timing are not determinants of capital structure for Tbks, while Overconfidence and the control variables Firm Profitability, Firm’s Asset Tangibility and Firm Size were statistically validated as capital structure determinants. Overconfidence (as a behavioural bias) is observed to have significant negative influence on management’s capital structure determinations, while Optimism has insignificant positive influence. The less aggressive leveraged models adopted by the sampled Tbks may indicate that implemented good principles of corporate governance have played a role in preventing capital structure determinations skewed by managements’ behavioural biases or psychological tendencies.

The stock exchange in Indonesia acts as a means of financial resources of business and investment for the community. Any investor needs some profit from his/her investment. However, in determining a policy for decision making, many investors do not always think, rationally. Moreover, stock trading in the stock exchange/money market faces with high uncertainty, which may create some ir-rational acts and leads to irrational investment decisions. This study aims to test the biased inves-tor’s behavior, such as overconfidence, disposition effect, and risk tolerance on investor’s trading activities in the Indonesian Stock Exchange. To analyze the qualitative response variable in this re-search, the researchers considered more than two categories. Therefore, the analysis required was Multi-nominal Logistic Regression Model. Meanwhile, some investors appointed to be the subject in this research were the customers of some Securities. The survey distributed 170 questionnaires and collected 141 properly filled ones used in this research. The testing result employing simultaneous multi-nominal logistic regression show that the overall model used was quite significant. The testing conducted partially also shows that only overconfident investors were affected by trading activities. Meanwhile, the opportunity of the overconfident investor to do trading was considered to be moderate as much as 0.177 multiplied from the “infrequent” category.

This study examines whether capital structure determinations by Indonesian publicly listed firms (Tbks) are influenced by the behavioural biases of overconfidence and optimism, with the underlying rationality frameworks being framed by relevant financial information and impacted by decision-makers’ demographic attributes. Data were obtained from survey respondents and statistically analysed using partial least squares structural equation modelling to identify the indicators of causative dynamics within the hypothesised relationships. Sampled Tbks’ management (CEOs/CFOs) displayed the inherent behavioural traits of overconfidence and optimism in their capital structure determinations. However, such behavioural variables were not statistically proven to significantly influence capital structure decision-making and, hence, were not validated as capital structure determinants. The pecking order framework was revealed to have a significant framing effect on capital structure decision-making by sampled managers. Sampled managers’ demographic attributes and backgrounds were found to be capital structure determinants but did not have a mediating or moderating influence on the modelled relationship between behavioural variables and capital structure.

Entrepreneurs are the driving force behind the prospect and growth of the societies. Sound and wise decisions pave the way for them to carry out these highly important functions. Entrepreneurs are to discover and exploit opportunities. Therefore, they must gather sufficient and pertinent information. Entrepreneurs, like most human beings face complex and ambiguous decision-making situations, not to mention their lack of time and source to gather and process the data. Under these circumstances, entrepreneurs are prone making biases decisions. There are many reasons identified for this entrepreneurial decision making biases, such as the high cost of rational decision making, limitations in information processing, differences in their styles and procedures, or information overload, environmental complexity, environmental uncertainty. These biases are neither totally harmful nor completely useful and have to be seen as natural human characteristics. What makes entrepreneurial decision-making biases important is their effects on the decisions and thus the outcome of the enterprises. Entrepreneurial decision-making biases, deliberate or unintentional can seal the fate of the enterprises, therefore studying them meticulously is crucial. Literature has shown that experience could be an effective factor in decision-making biases. In this paper, we try to find out the impact of experience in Iranian high tech entrepreneurs’ major decision-making biases by a qualitative approach. Finally, it was concluded that experience is influential in shaping overconfidence bias.

This research examines the determinants of firms’ investment introducing a behavioral perspective that has received little attention in corporate finance literature. The following central hypothesis emerges from a set of recently developed theories: Investment decisions are influenced not only by their fundamentals but also depend on some other factors. One factor is the biasness of any CEO to their investment, biasness depends on the cognition and emotions, because some leaders use them as heuristic for the investment decision instead of fundamentals. This paper shows how CEO emotional bias (optimism, loss aversion and overconfidence) affects the investment decisions. The proposed model of this paper uses Bayesian Network Method to examine this relationship. Emotional bias has been measured by means of a questionnaire comprising several items. As for the selected sample, it has been composed of some 100 Tunisian executives. Our results have revealed that the behavioral analysis of investment decision implies leader affected by behavioral biases (optimism, loss aversion, and overconfidence) adjusts its investment choices based on their ability to assess alternatives (optimism and overconfidence) and risk perception (loss aversion) to create of shareholder value and ensure its place at the head of the management team.