Retrospective wisdom: Long-term orientation and the rating downgrades of financial institutions

Dang, Huong

doi:10.1016/j.gfj.2023.100857

Cited by 1 publication

(1 citation statement)

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“…Objective indicators capture the subject’s knowledge about various financial notions such as the relationship between interest rates and inflation whereas subjective indicators capture their self-assessed financial knowledge such as “how good one is in managing their finance”? Though both indicators play a respective part some studies show a greater effect size of subjective financial knowledge in influencing managerial financial wisdom (Dang, 2023). Literature provides a trail where people scoring high on financial knowledge are found effective in credit, saving, and investment behavior (King et al ., 2022) and are more likely to invest in higher efficiency funds, plan for future years, and perceive high financial satisfaction or managerial financial wisdom (Philippas and Avdoulas, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Framework of managerial wisdom: an analysis using the TOPSIS and MICMAC process

Valiyan,

Abdoli,

Ashrafi

et al. 2024

AJB

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PurposeBehavioral characteristics and the existence of personal knowledge and skills that are essential in forming a capable manager with specialized insight, is one of the most important evaluation processes in appointing a manager. Wisdom as a trait of a set of personal characteristics and cognitive knowledge of a capable manager will gain competitive advantages for the company and external stakeholders. The purpose of this study is to present the framework of managerial financial wisdom through qualitative and quantitative research methodologies.Design/methodology/approachThe study uses grounded theory methodology to identify factors for managerial financial wisdom and uses a MICMAC process to evaluate the power of driving and dependence among factors. MaxQDA software was used for data coding and analysis. The MICMAC process by determining the location of each of the sub-themes in the four-dimensional matrix, seeks to determine the most effective criterion in the context of the study. The method of data collection is mixed and in terms of philosophical nature, this study is inductive/comparative.FindingsThe results of the research in the qualitative part indicate the presentation of a framework based on two categories, four components, and thirty themes. The results of the quantitative part of the study also showed that the most important factor of managerial financial wisdom is market-oriented values. Finally, it was found that the social trust caused by managerial financial wisdom is considered a factor in gaining more shares in the capital market due to the positive stimulus in this dimension.Originality/valueThe study is relevant for both practitioners and academia and has significant implications. For practitioners, the structural linkages identified will help enhance managerial wisdom effectiveness and drive the critical metrics for financial decisions and shareholders' rights protection. The study may help financial market practitioners better understand future policies. Academia and researchers can take reference from methodologies used in this study for exploring factors of interest and developing matrix linkages among them.

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Section: Literature Reviewmentioning

confidence: 99%