This study examines the reasons of investor’s escalatory behavior in firm’s investment decision. It shows the possible influence of three closely related features which are: firm’s financial indicators, investor’s risk profile, and investor’s psychology commitment level, on a firm’s investment decisions escalation. This study aims to provide evidence as to whether investor considers the financial and risk’s perception features (financial strength and risk profile) in his escalatory behavior while he notes a high psychology commitment level. The proposed model of this paper uses GLM univariate data analyses to examine this relationship. Investor’s risk profile and his psychology commitment level 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 investor’s commitment bias and its risk perception in explaining his investment decision escalation. Moreover results shows that there is strong and significant empirical relationship linking the investment decision escalation and the interaction effects between the three independent variables. This means that, in practice, investors consider the three factors simultaneously.

Purpose: The purpose of this paper is to investigate the impact of the International Financial Reporting Standards (IFRS) adoption and corporate governance mechanisms (e.g., Board characteristics and Audit Committee (AC) characteristics) on Audit Report Lag (ARL) in an emerging country, named Saudi Arabia. Methodology: We use a sample of 616 firm-year observations from the Tadawul Stock Exchange in Saudi Arabia for the period 2016-2019. Panel regressions were used. Findings: The results indicate that ARL has significantly increased after the IFRSs' adoption. This result may imply that IFRS adoption leads to a need of adaptation process. It may support the need for more training and IFRS education in Saudi Arabia. Additionally, both AC diligence and AC financial expertise significantly reduce ARL. It may support the Saudi regulatory requirement to equip audit committees with at least one member with accounting and financial expertise. However, the results show that AC size and Board characteristics (board size, board independence and board meetings) are not significantly associated with ARL. Contribution: Our study fills the gap in the existing literature by examining the impact of the IFRSs' adoption and the corporate governance characteristics on ARL, whose results remain mixed and rare in Saudi Arabia, an emerging and under-studied context.

This study deals with appreciating the role of both governance system and executives cognitive and attitudinal aspects in the innovation decision-making. After discussing the theoretical relationship between board independence and CEOs attitude and behavior, we are advancing an empirical model testing the correlation between the managers' attitude and behavior towards innovation and his psychological commitment level. The CEOs commitment bias and attitude constituent were measured using questionnaire. The data analysis was performed using the Bayesian network method on 220 Tunisian executives. Empirical results confirm the theoretical prediction and shows that processing with persuasive mechanism does not have an effective role on the alignment of the manager's attitude and behavior in key tasks such innovation decision. CEOs authentic behavior was more related to an important manager involvement in this behavior rather than to persuasive effort committed by outside directors to make him contract this action. CEOs attitude and behavior towards innovation are shown related to commitment link "manager-task" and suggests that the board of directors plays no role in the CEOs discretion management. We argue that persuasive approach is not a sufficient path in behavior and interests alignment; yet, it should be applied with the commitment approach for understanding manager decision-making.

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Given the importance of analyzing the manager’s attitude and behavior in decision-making process, several researchers have examined the effect of the persuasive communication on manager’s actions. The majority of these researchers are concentrated on studying the impact of the governance monitoring system as a predictor of manager’s behavior. The aim of this review is to analyze the existing theoretical literature with a deep concentration on the new behavior change paradigm enhanced by the theory of binding communication. Particularly, we aim in this paper to remedy the explained breakage between managers’ cognitions and theirs actions, and aims to predict the managers behaviors.