Behavioral CorporateFinance

ArXiv ID: ssrn-288257 “View on arXiv”

Authors: Unknown

Abstract

Managers and corporate directors need to recognize two key behavioral impediments that obstruct the process of value maximization, one internal to the firm and

Keywords: Value Maximization, Behavioral Impediments, Corporate Governance, Management Decision Making, Equities

Complexity vs Empirical Score

• Math Complexity: 1.5/10
• Empirical Rigor: 2.0/10
• Quadrant: Philosophers
• Why: The paper is conceptual and descriptive, focusing on psychological biases and behavioral theory with minimal mathematical formalism or quantitative models; empirical evidence is cited anecdotally or through references without presenting backtests, datasets, or implementation-heavy analysis.

  flowchart TD
    A["Research Goal:<br>Identify behavioral impediments to value maximization"] --> B["Data Inputs:<br>Corporate governance structures & management decisions"]
    B --> C["Methodology:<br>Analysis of equities & behavioral finance theories"]
    C --> D{"Computational Process:<br>Assess impact of internal vs. external impediments"}
    D --> E["Key Findings:<br>Managers must overcome internal biases &<br>external governance misalignments for value maximization"]