%0 Journal Article
%T InvestorĄ¯s Commitment Bias and Escalation of FirmĄ¯s Investment Decision
%A Fadhila HAMZA
%A Anis JARBOUI
%J Economia : Seria Management
%D 2012
%I Editura ASE
%X This study examines the reasons of perseverance in firmĄ¯s investment decision. It shows the possible influence of three closely related features which are: firmĄ¯s financial indicators, investorĄ¯s risk profile, and investorĄ¯s commitment bias, on a firmĄ¯s investment decisions escalation. This study aims to provide evidence as to whether investor considers the financial and riskĄ¯s perception features (financial strength and risk profile) to persevere his initial investment decision while he notes a high level of commitment bias. The proposed model of this paper uses GLM univariate data analyses to examine this relationship. InvestorĄ¯s risk profile and his commitment bias have been measured by means of a questionnaire comprising several items. As for the selected sample, it has been composed of some 360 Tunisian individual investors. Our results have revealed that investors pay more attention to keep their psychology comfort than their financial comfort. It exposed the importance of the investorĄ¯s commitment bias and its risk perception in explaining investment decision escalation. Moreover results shows that there is strong and significant empirical relationship linking the escalatory behavior in investment decision and the interaction effects between the three independent variables. This means that, in practice, investors consider the three factors simultaneously.
%K commitment bias
%K escalatory behavior
%K investorĄ¯s risk profile
%K firmĄ¯s financial strength indicator
%K investment level
%U http://www.management.ase.ro/reveconomia/2012-2/8.pdf