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Financial decision making is influenced by several factors. These factors include uncertainty, corporate social responsibility, and stakeholders' interests . The financial environment and human behavior also play a significant role in shaping financial decisions . Additionally, theories and concepts are used to explain and improve financial decision making . Cognitive psychology research has explored how people make decisions and the factors that influence decision making in the present and future . Overall, the determinants of financial decisions and their impact on the financial performance of firms are critical factors to consider .
Related Questions
What are the factors that influence decision making?5 answersFactors that influence decision-making include a lack of information, values, incentives, norms, organizational culture, self-concept, position, problems, situations, conditions, goals, availability of necessary information, personality, decision-making skills, experience, and environment. Psychological factors such as cognitive biases, emotions, and social influences also play a crucial role in shaping economic decision-making. Additionally, the study on investment decisions in financial organizations found that factors such as planning, economic policy, communication, motivation, organizing, and work stress can influence decision-making. These factors collectively contribute to the complex process of decision-making, highlighting the need for policies and programs that take into account both rational and psychological factors in shaping economic behavior.What are the most important factors that influence financial decision-making in students?4 answersFinancial decision-making in students is influenced by several factors. These factors include financial literacy, money ethics, money attitude, time preference, financial experience, financial specialization agents, power, personal financial literacy, achievement, financial behavior, avoidance, reward for efforts, financial socialization agents, and regret aversion bias. Additionally, herding, risk tolerance, and overconfidence play a significant role in shaping investment decisions among students. Students' values towards money and attitude also influence their financial decisions. Furthermore, motives such as home education, school education, and personal lifestyle impact students' saving behavior. These findings highlight the importance of financial literacy education, the role of financial institutions and universities in providing guidance, and the need to instill human values related to financial decision-making in students.What are the key factors that influence financial responsibility?4 answersFinancial responsibility is influenced by several key factors. One important factor is financial knowledge, which has a weak association with responsible financial behavior. Other factors include parental influence, self-discipline, thoroughness, optimism, intuitiveness, and materialism. These individual psychological characteristics play a role in shaping financial behavior. Demographic characteristics such as age, occupation, perceived income adequacy, and having a child also influence financial responsibility. Gender and income dynamics also play a role, with women being more likely to have major responsibility for household shopping and bill paying, while financial decision-making tends to be shared equally and influenced by income ranking. External pressures, such as concentrated ownership and customers' pressure, can either inhibit or motivate the quality of corporate social responsibility reporting among financial institutions.What are the key factors that influence financial literacy?5 answersFinancial literacy is influenced by various factors. Demographic factors such as age, gender, education level, profession, income level, family size, and number of dependents have been found to have an association with the level of financial literacy. For example, education level, profession, income level, and family size have been identified as factors that impact financial literacy. Additionally, the study in South Africa found that gender, age cohort, and education level were related to financial literacy, with males using budgets more than females and adults between the ages of 41-50 being more likely to keep copies of financial documents. Furthermore, socioeconomic factors such as consumption spending have been found to affect the relationship between financial awareness and skills. Overall, understanding these key factors can help policymakers identify gaps and design appropriate interventions to improve financial literacy levels.What are the factors affecting financial decision making of students?5 answersFinancial decision making of students is influenced by various factors. Factors such as herding, risk tolerance, and overconfidence significantly impact the stock investment decisions made by students. Additionally, financial literacy plays a crucial role in students' decision-making process. Factors such as management, income, budgeting, education, and planning contribute to the financial literacy level possessed by university students. Moreover, cognitive style, including the individual's way of processing information, affects the decision-making process in finance, including the time spent, speed, emotional state, and decision strategy. Furthermore, students' financial knowledge and personal background also affect their financial opinions and choices. Factors such as gender, nationality, academic discipline, and financial choices have a significant impact on financial literacy. Finally, factors such as money management, financial behavior, influence, attitude, and investment positively affect the financial literacy of college students.What are the factors that influence decision making?2 answersFactors that influence decision making include psychological, emotional, and cognitive systems. Other factors include social norms, basic research on choice, and the role of predispositions and biases. Additionally, recent experience and self-fulfilling prophecies regarding forecast accuracy can also impact decision making. Lack of information, ambiguity, and inaccuracy of available information are exogenous factors that increase uncertainty in decision making. The decision-making process is also influenced by factors such as heuristics, the IT systems that support business processes, and the desire to reach a desired future state.
