Cover Image

Peer effects, financial decisions and industry concentration: A review

Purpose- This article reviews literature related to peer effects and different financial decisions. It further summarizes the theory and motives that drive peer effects. Also, the study highlights the influence of industry concentration on peer interaction in financial decision making. This content...

Full description

Saved in:
Bibliographic Details
Main Authors: Zaighum, Isma, Abd Karim, Mohd Zaini
Format: Article
Language:English
Published: SEISENSE 2019
Subjects:
HG Finance
Online Access:http://repo.uum.edu.my/27326/1/SJM%202%202%202019%2013%2021%20N.pdf
http://repo.uum.edu.my/27326/
http://doi.org/10.33215/sjom.v2i2.116
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.uum.repo.27326
record_format eprints
spelling my.uum.repo.273262020-08-13T02:25:59Z http://repo.uum.edu.my/27326/ Peer effects, financial decisions and industry concentration: A review Zaighum, Isma Abd Karim, Mohd Zaini HG Finance Purpose- This article reviews literature related to peer effects and different financial decisions. It further summarizes the theory and motives that drive peer effects. Also, the study highlights the influence of industry concentration on peer interaction in financial decision making. This content analysis of scantily available peer effect literature has been performed to highlight the significance of peer effects in financial decision making like investment, cash holding, leverage and many more. Most of the existing peer effects literature focuses on the U.S. However, peer effects also occur in other countries but empirical evidence is comparatively limited. But, managers may take into consideration their industry peers especially if their firms are operating in highly competitive environments. Design/Methodology- Content analysis approach is applied to review prevailing financial literature on peer interactions and financial decisions with a special focus on industry concentration in explaining the peer effects.Practical Implications- As the prime focus of managerial decisions is to maximize the firm’s value. Hence, information about peers would be helpful in making better decisions, especially in highly competitive environments. Also, this review of selected literature provides pathways for future research in investigating the motives of peer effects. SEISENSE 2019 Article PeerReviewed application/pdf en http://repo.uum.edu.my/27326/1/SJM%202%202%202019%2013%2021%20N.pdf Zaighum, Isma and Abd Karim, Mohd Zaini (2019) Peer effects, financial decisions and industry concentration: A review. SEISENSE Journal of Management, 2 (2). pp. 13-21. ISSN 2617-5770 http://doi.org/10.33215/sjom.v2i2.116 doi:10.33215/sjom.v2i2.116
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Zaighum, Isma
Abd Karim, Mohd Zaini
Peer effects, financial decisions and industry concentration: A review
description Purpose- This article reviews literature related to peer effects and different financial decisions. It further summarizes the theory and motives that drive peer effects. Also, the study highlights the influence of industry concentration on peer interaction in financial decision making. This content analysis of scantily available peer effect literature has been performed to highlight the significance of peer effects in financial decision making like investment, cash holding, leverage and many more. Most of the existing peer effects literature focuses on the U.S. However, peer effects also occur in other countries but empirical evidence is comparatively limited. But, managers may take into consideration their industry peers especially if their firms are operating in highly competitive environments. Design/Methodology- Content analysis approach is applied to review prevailing financial literature on peer interactions and financial decisions with a special focus on industry concentration in explaining the peer effects.Practical Implications- As the prime focus of managerial decisions is to maximize the firm’s value. Hence, information about peers would be helpful in making better decisions, especially in highly competitive environments. Also, this review of selected literature provides pathways for future research in investigating the motives of peer effects.
format Article
author Zaighum, Isma
Abd Karim, Mohd Zaini
author_facet Zaighum, Isma
Abd Karim, Mohd Zaini
author_sort Zaighum, Isma
title Peer effects, financial decisions and industry concentration: A review
title_short Peer effects, financial decisions and industry concentration: A review
title_full Peer effects, financial decisions and industry concentration: A review
title_fullStr Peer effects, financial decisions and industry concentration: A review
title_full_unstemmed Peer effects, financial decisions and industry concentration: A review
title_sort peer effects, financial decisions and industry concentration: a review
publisher SEISENSE
publishDate 2019
url http://repo.uum.edu.my/27326/1/SJM%202%202%202019%2013%2021%20N.pdf
http://repo.uum.edu.my/27326/
http://doi.org/10.33215/sjom.v2i2.116
_version_ 1675329767023312896
score 13.211869

Similar Items