2022
DOI: 10.5267/j.ijdns.2021.9.012
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Short and/or long-term investment choice: Artificial intelligence analysis of the role of both or-ganizational and behavioral determinants

Abstract: This paper shows empirically the impact of organizational and behavioral determinants on the CEO's investment horizon choice, using artificial intelligence explanatory methods. We apply our approach to 100 Saudi firms. We test the effect of three organizational determinants: ownership concentration, board independence, and CEO remuneration system; and three behavioral determinants: myopia, the locus of control and commitment, on the CEO's investment horizon choice. The study’s key finding is that executives' c… Show more

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Cited by 4 publications
(3 citation statements)
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“…The Future of Finance in an AI-Dominated Landscape AI's capacity to automate financial advisories, elevate the quality of customer engagements, refine investment methodologies, and fortify regulatory adherence heralds a future where its imprint on the financial domain deepens with every passing moment (Hamza, 2022). Yet, this horizon is not without its storms.…”
Section: Ethical Considerations and Ai In Financementioning
confidence: 99%
“…The Future of Finance in an AI-Dominated Landscape AI's capacity to automate financial advisories, elevate the quality of customer engagements, refine investment methodologies, and fortify regulatory adherence heralds a future where its imprint on the financial domain deepens with every passing moment (Hamza, 2022). Yet, this horizon is not without its storms.…”
Section: Ethical Considerations and Ai In Financementioning
confidence: 99%
“…This decision-making bias, is a concern because of the impact it causes and is often not realized by many managers. Managerial myopia is described as maximizing short-term revenue rather than long-term performance (Laverty 1996;Levinthal and March 1993), lack of management foresight of strategic opportunities (Miller 2002), *Address correspondence to this author at the Faculty of Economics, Universitas Islam Sultan Agung, Semarang, Indonesia, and Faculty of Economics and Business, Universitas Islam Nahdlatul Ulama, Jepara, Indonesia; Tel: +6285290708266; E-mail: anam@unisnu.ac.id difficulties in being oriented toward the future (Marginson and McAulay 2008), abandonment of long-term planning (Ridge, Kern, and White 2014), lack of investment in longterm value creation activities (Hamza 2022;Lee and Nawata 2020;Madyan, Kurniawan, and Firdausi 2019). This management bias leads to the destruction of the value of the enterprise (Mahajan 2019).…”
Section: Introductionmentioning
confidence: 99%
“…Concerning the concept of finance, financial myopia is the inability to understand or anticipate the consequences resulting from short-term financial decisions (Trent 2020). Financial decision-making oriented toward short-term goals can be seen in investment decisions where financial allocations are used to solve current problems rather than investing in future opportunities (Chen, Lin, and Yang 2015;Hamza 2022;Lee and Nawata 2020;Madyan et al 2019).…”
Section: Introductionmentioning
confidence: 99%