IDEAS home Printed from https://ideas.repec.org/a/mir/mirbus/v6y2016i1p40-62.html
   My bibliography  Save this article

Influence of Emotions on Decision-Making

Author

Listed:
  • Michele Franco

    (Master’s Program in Business Administration, FACCAMP, Rua Guatemala, 167, CEP 13231-230, Campo Limpo Paulista - SP, Brazil.)

  • Cida Sanches

    (Professor and researcher at the Master’s Program in Business Administration, FACCAMP, Rua Guatemala, 167, CEP 13231-230, Campo Limpo Paulista - SP, Brazil.)

Abstract

The purpose of this study is to verify whether emotions and feelings influence the decisions of entrepreneurs differently in terms of gender using data collected via instruments i.e. questionnaire and a semi-structured interview. The findings suggest that out of 13 factors under study, 8 showed significant differences in the responses given by the two groups: love, unfairness, compassion, dissension, individualism, insecurity, anger and surprise. Men tend to face a decision situation as an intellectual challenge. They avoid listening to other people and decide rapidly, as they understand these actions as a sign of capacity and independence. The results showed that male and female entrepreneurs are significantly affected by feelings and emotions. Women showed a greater tendency than men did towards the following factors: love, jealousy and dissension. This study contributes to the entrepreneurship liteature and broadens the empirical base of studies related to the influence of emotions and feelings of male and female entrepreneurs, providing a possible new perspective regarding decisions, taking into account the gender of the decision maker.

Suggested Citation

  • Michele Franco & Cida Sanches, 2016. "Influence of Emotions on Decision-Making," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 6(1), pages 40-62, January.
    • Handle: RePEc:mir:mirbus:v:6:y:2016:i:1:p:40-62
    as

    Download full text from publisher

    File URL: http://thejournalofbusiness.org/index.php/site/article/view/908/585
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hervé Laroche, 1995. "From Decision to Action in Organizations: Decision-Making as a Social Representation," Organization Science, INFORMS, vol. 6(1), pages 62-75, February.
    2. Schumpeter, Joseph A., 1947. "The Creative Response in Economic History," The Journal of Economic History, Cambridge University Press, vol. 7(2), pages 149-159, November.
    3. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    4. Bechara, Antoine & Damasio, Antonio R., 2005. "The somatic marker hypothesis: A neural theory of economic decision," Games and Economic Behavior, Elsevier, vol. 52(2), pages 336-372, August.
    5. Herbert A. Simon & Massimo Egidi & Ricardo Viale & Robin Marris, 1992. "Economics, Bounded Rationality and the Cognitive Revolution," Books, Edward Elgar Publishing, number 409.
    6. Jon Elster, 1998. "Emotions and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 47-74, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mariana Sedliačiková & Patrik Aláč & Mária Moresová, 2020. "How Behavioral Aspects Influence the Sustainable Financial Decisions of Shareholders: An Empirical Study and Proposal for a Relevant Decision-Making Concept," Sustainability, MDPI, vol. 12(12), pages 1-18, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michele Franco & Cida Sanches, 2016. "Influence of Emotions on Decision-Making," International Journal of Business and Social Research, LAR Center Press, vol. 6(1), pages 40-62, January.
    2. Ardalan, Kavous, 2018. "Neurofinance versus the efficient markets hypothesis," Global Finance Journal, Elsevier, vol. 35(C), pages 170-176.
    3. Klaus Wälde, 2016. "Emotion Research in Economics," CESifo Working Paper Series 5982, CESifo.
    4. Christian Schmidt, 2006. "Quelques points de rencontre entre économistes et psychologues," Revue économique, Presses de Sciences-Po, vol. 57(2), pages 242-257.
    5. Kavous Ardalan, 2018. "Behavioral attitudes toward current economic events: a lesson from neuroeconomics," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 53(4), pages 202-208, October.
    6. Stephan Schulmeister, 2000. "Technical Analysis and Exchange Rate Dynamics," WIFO Studies, WIFO, number 25857, April.
    7. Etienne, Julien, 2010. "The impact of regulatory policy on individual behaviour: a goal framing theory approach," LSE Research Online Documents on Economics 36541, London School of Economics and Political Science, LSE Library.
    8. Giuseppe Garofalo, 2014. "Irreducible complexities: from Gödel and Turing to the paradigm of Imperfect Knowledge Economics," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(6), pages 3463-3474, November.
    9. Emmanuel PETIT, 2010. "The role of regret in the persistence of anomalies in financial markets (In French)," Cahiers du GREThA (2007-2019) 2010-07, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    10. Ronald Bosman & Frans Van Winden, 2010. "Global Risk, Investment and Emotions," Economica, London School of Economics and Political Science, vol. 77(307), pages 451-471, July.
    11. Klaus Wälde & Agnes Moors, 2016. "Current Emotion Research in Economics," Working Papers 1612, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    12. Drichoutis, Andreas C. & Nayga, Rodolfo M., 2013. "Eliciting risk and time preferences under induced mood states," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 18-27.
    13. Bruno S. Frey & Matthias Benz, 2004. "From Imperialism to Inspiration: A Survey of Economics and Psychology," Chapters, in: John B. Davis & Alain Marciano & Jochen Runde (ed.), The Elgar Companion To Economics and Philosophy, chapter 4, Edward Elgar Publishing.
    14. Hans-Rüdiger Pfister & Gisela Böhm, 2012. "Responder Feelings in a Three-Player Three-Option Ultimatum Game: Affective Determinants of Rejection Behavior," Games, MDPI, vol. 3(1), pages 1-29, February.
    15. Lotz, Aïleen, 2011. "An Economic Approach to the Self : the Dual Agent," MPRA Paper 30043, University Library of Munich, Germany.
    16. Andreas Roider & Patrick W. Schmitz, 2012. "Auctions with Anticipated Emotions: Overbidding, Underbidding, and Optimal Reserve Prices," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(3), pages 808-830, September.
    17. Kräkel, Matthias, 2004. "Emotions and Incentives," IZA Discussion Papers 1270, Institute of Labor Economics (IZA).
    18. Caliendo, Marco & Fossen, Frank & Kritikos, Alexander, 2010. "The impact of risk attitudes on entrepreneurial survival," Journal of Economic Behavior & Organization, Elsevier, vol. 76(1), pages 45-63, October.
    19. Brice Corgnet & Camille Cornand & Nobuyuki Hanaki, 2020. "Negative Tail Events, Emotions & Risk Taking," Working Papers 2016, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    20. Francesco Bogliacino & Cristiano Codagnone & Giuseppe Alessandro Veltri & Amitav Chakravarti & Pietro Ortoleva & George Gaskell & Andriy Ivchenko & Francisco Lupiáñez-Villanueva & Francesco Mureddu & , 2015. "Pathos & Ethos: Emotions and Willingness to Pay for Tobacco Products," PLOS ONE, Public Library of Science, vol. 10(10), pages 1-25, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mir:mirbus:v:6:y:2016:i:1:p:40-62. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: M Kabir (email available below). General contact details of provider: https://edirc.repec.org/data/csmirus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.