Change search
ReferencesLink to record
Permanent link

Direct link
A behavioural approach to working capital management
Stockholm University, Faculty of Social Sciences, Stockholm Business School.
2016 (English)In: European Journal of Finance, ISSN 1351-847X, E-ISSN 1466-4364, Vol. 22, no 8-9, 662-687 p.Article in journal (Refereed) Published
Abstract [en]

This paper documents the behaviour of corporate treasurers who are involved in the decision-making process in the areas of cash, inventory, accounts receivable, accounts payable and risk management during the global financial crisis. Using a survey questionnaire, we attempt to find out if working capital managers are prone to certain heuristic-driven biases, such as loss aversion, high confidence level, anchoring and self-serving biases. Our findings show that these professionals exhibit signs of behavioural biases. Although the biases lead to sub-optimal decisions in certain areas of working capital management (WCM), they can also be desirable attributes in other aspects of WCM. We propose a profile of a good working capital manager.

Place, publisher, year, edition, pages
2016. Vol. 22, no 8-9, 662-687 p.
Keyword [en]
loss aversion, high confidence, anchoring, self-serving bias, working capital management
National Category
Business Administration
URN: urn:nbn:se:su:diva-116184DOI: 10.1080/1351847X.2014.883549ISI: 000378805100003OAI: diva2:802616
1st Conference of the Behavioural-Finance-Working-Group, London, England, June 21-22, 2012
Available from: 2015-04-13 Created: 2015-04-13 Last updated: 2016-08-11Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Graham, Michael
By organisation
Stockholm Business School
In the same journal
European Journal of Finance
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 66 hits
ReferencesLink to record
Permanent link

Direct link