Peer effects, Financial Decisions and Industry Concentration
Purpose- This article reviews literature related to peer effects and different financial decisions. It further summarizes the theory and motives that drive peer effects. Also, the study highlights the influence of industry concentration on peer interaction in financial decision making. This content...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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seisense
2019-02-01
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| Series: | SEISENSE Journal of Management |
| Subjects: | |
| Online Access: | https://journal.seisense.com/jom/article/view/116 |
| _version_ | 1797260496598990848 |
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| author | Isma Zaighum Dr. Mohd Zaini Abd Karim |
| author_facet | Isma Zaighum Dr. Mohd Zaini Abd Karim |
| author_sort | Isma Zaighum |
| collection | DOAJ |
| description |
Purpose- This article reviews literature related to peer effects and different financial decisions. It further summarizes the theory and motives that drive peer effects. Also, the study highlights the influence of industry concentration on peer interaction in financial decision making. This content analysis of scantily available peer effect literature has been performed to highlight the significance of peer effects in financial decision making like investment, cash holding, leverage and many more. Most of the existing peer effects literature focuses on the U.S. However, peer effects also occur in other countries but empirical evidence is comparatively limited. But, managers may take into consideration their industry peers especially if their firms are operating in highly competitive environments.
Design/Methodology- Content analysis approach is applied to review prevailing financial literature on peer interactions and financial decisions with a special focus on industry concentration in explaining the peer effects.
Practical Implications- As the prime focus of managerial decisions is to maximize the firm’s value. Hence, information about peers would be helpful in making better decisions, especially in highly competitive environments. Also, this review of selected literature provides pathways for future research in investigating the motives of peer effects.
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| first_indexed | 2024-03-07T14:05:12Z |
| format | Article |
| id | doaj.art-acdd09706b2d48b0987bb528cb4b7c78 |
| institution | Directory Open Access Journal |
| issn | 2617-5770 |
| language | English |
| last_indexed | 2024-04-24T23:26:15Z |
| publishDate | 2019-02-01 |
| publisher | seisense |
| record_format | Article |
| series | SEISENSE Journal of Management |
| spelling | doaj.art-acdd09706b2d48b0987bb528cb4b7c782024-03-16T00:24:30ZengseisenseSEISENSE Journal of Management2617-57702019-02-012210.33215/sjom.v2i2.116Peer effects, Financial Decisions and Industry ConcentrationIsma Zaighum0Dr. Mohd Zaini Abd Karim1Universiti Utara MalaysiaOthman Yeop Abdullah Graduate School of Business, University Utara Malaysia Purpose- This article reviews literature related to peer effects and different financial decisions. It further summarizes the theory and motives that drive peer effects. Also, the study highlights the influence of industry concentration on peer interaction in financial decision making. This content analysis of scantily available peer effect literature has been performed to highlight the significance of peer effects in financial decision making like investment, cash holding, leverage and many more. Most of the existing peer effects literature focuses on the U.S. However, peer effects also occur in other countries but empirical evidence is comparatively limited. But, managers may take into consideration their industry peers especially if their firms are operating in highly competitive environments. Design/Methodology- Content analysis approach is applied to review prevailing financial literature on peer interactions and financial decisions with a special focus on industry concentration in explaining the peer effects. Practical Implications- As the prime focus of managerial decisions is to maximize the firm’s value. Hence, information about peers would be helpful in making better decisions, especially in highly competitive environments. Also, this review of selected literature provides pathways for future research in investigating the motives of peer effects. https://journal.seisense.com/jom/article/view/116Peer effectFinanceIndustry ConcentrationReview |
| spellingShingle | Isma Zaighum Dr. Mohd Zaini Abd Karim Peer effects, Financial Decisions and Industry Concentration SEISENSE Journal of Management Peer effect Finance Industry Concentration Review |
| title | Peer effects, Financial Decisions and Industry Concentration |
| title_full | Peer effects, Financial Decisions and Industry Concentration |
| title_fullStr | Peer effects, Financial Decisions and Industry Concentration |
| title_full_unstemmed | Peer effects, Financial Decisions and Industry Concentration |
| title_short | Peer effects, Financial Decisions and Industry Concentration |
| title_sort | peer effects financial decisions and industry concentration |
| topic | Peer effect Finance Industry Concentration Review |
| url | https://journal.seisense.com/jom/article/view/116 |
| work_keys_str_mv | AT ismazaighum peereffectsfinancialdecisionsandindustryconcentration AT drmohdzainiabdkarim peereffectsfinancialdecisionsandindustryconcentration |