The Research of Escalation of Commitment Behavior and Psychological Factors
| Autor: | Hui-Ying Lin, 林惠瑩 |
|---|---|
| Rok vydání: | 2009 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 97 The purpose of this study is to explore the relationship between investor’s psychological biases and escalation of commitment behavior. Based on the generalized prospect theory of escalation of commitment, this study set up four factors of constructs of first-order latent variables, including mental account, regret avoiding, self-control and over confidence. The Structure Equation Model (SEM) is employed to conduct empirical analysis. The empirical results indicate that escalation of commitment are significantly related to the four mental elements. In particular, the factors of heuristic, mental accounting and risk attitude have more impact on escalation of commitment. For instance, the investor’s mental accounting exhibits no willing to stop the loss (sell out the investment) when they are confronting with deeply going down of the price of investment due to the fact that they don’t want to experience that the price of investment goes up and gets back to the prime cost some day after they sold out the investment. Therefore, investors decide to buy more shares to cut down the average cost. Furthermore, the self control will weaken the escalation of commitment. The reasons are that the investors whom have setup the stop loss point are more self-controllable. Therefore, the sunk cost is not easy to happen. Moreover, they can control their self-conceit when they had gain. Hence, it will avoid the over investment and reduce the ration of loss happened. To sum up, the behavior of escalation of commitment is significantly impacted by mental account, regret avoiding and self-control. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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