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Familiarity bias and economic decisions: Evidence from a survey experiment

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  • Zhu, Zhaobo
  • Qi, Zhenyan
  • Jin, Yi

Abstract

This paper provides experimental evidence that people in China have strong familiarity bias identified by hometown and education locations when making merger and acquisition decisions. Emotions and genders could affect the role of familiarity bias in merger and acquisition decisions.

Suggested Citation

  • Zhu, Zhaobo & Qi, Zhenyan & Jin, Yi, 2023. "Familiarity bias and economic decisions: Evidence from a survey experiment," Economics Letters, Elsevier, vol. 229(C).
    • Handle: RePEc:eee:ecolet:v:229:y:2023:i:c:s0165176523002227
    DOI: 10.1016/j.econlet.2023.111197
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    References listed on IDEAS

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    More about this item

    Keywords

    Familiarity bias; Home bias; Emotion; Merger and acquisition decisions;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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