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Fear of Virus or of Competitors? The Decision Rationales of Financial Managers Under COVID-19
This paper surveyed 422 financial managers before the number of novel coronavirus (COVID-19) infections in China peaked and used path analysis to study the risk decision-making mechanisms of financial managers. The study found that whether financial managers developed coping strategies depends on th...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Frontiers Media S.A.
2020
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Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7652787/ https://www.ncbi.nlm.nih.gov/pubmed/33192811 http://dx.doi.org/10.3389/fpsyg.2020.556139 |
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author | Sun, Jinlu Wu, Ting Chen, Bo |
author_facet | Sun, Jinlu Wu, Ting Chen, Bo |
author_sort | Sun, Jinlu |
collection | PubMed |
description | This paper surveyed 422 financial managers before the number of novel coronavirus (COVID-19) infections in China peaked and used path analysis to study the risk decision-making mechanisms of financial managers. The study found that whether financial managers developed coping strategies depends on their assessment of potential business revenue losses. There are two transmission paths: the direct effect refers to the risk perception directly caused by COVID-19, while the indirect effect refers to managers’ fear that they will not make timely adjustments or will make judgment errors, resulting in the loss of competitive advantage. It is worth noting that the indirect effect exceeds the direct effect, which indicates that financial managers are more rational than ordinary people in dealing with COVID-19, that they are relatively more concerned about competitor changes, and that they may even view COVID-19 as an important opportunity to obtain a better competitive position. |
format | Online Article Text |
id | pubmed-7652787 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2020 |
publisher | Frontiers Media S.A. |
record_format | MEDLINE/PubMed |
spelling | pubmed-76527872020-11-13 Fear of Virus or of Competitors? The Decision Rationales of Financial Managers Under COVID-19 Sun, Jinlu Wu, Ting Chen, Bo Front Psychol Psychology This paper surveyed 422 financial managers before the number of novel coronavirus (COVID-19) infections in China peaked and used path analysis to study the risk decision-making mechanisms of financial managers. The study found that whether financial managers developed coping strategies depends on their assessment of potential business revenue losses. There are two transmission paths: the direct effect refers to the risk perception directly caused by COVID-19, while the indirect effect refers to managers’ fear that they will not make timely adjustments or will make judgment errors, resulting in the loss of competitive advantage. It is worth noting that the indirect effect exceeds the direct effect, which indicates that financial managers are more rational than ordinary people in dealing with COVID-19, that they are relatively more concerned about competitor changes, and that they may even view COVID-19 as an important opportunity to obtain a better competitive position. Frontiers Media S.A. 2020-10-27 /pmc/articles/PMC7652787/ /pubmed/33192811 http://dx.doi.org/10.3389/fpsyg.2020.556139 Text en Copyright © 2020 Sun, Wu and Chen. http://creativecommons.org/licenses/by/4.0/ This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms. |
spellingShingle | Psychology Sun, Jinlu Wu, Ting Chen, Bo Fear of Virus or of Competitors? The Decision Rationales of Financial Managers Under COVID-19 |
title | Fear of Virus or of Competitors? The Decision Rationales of Financial Managers Under COVID-19 |
title_full | Fear of Virus or of Competitors? The Decision Rationales of Financial Managers Under COVID-19 |
title_fullStr | Fear of Virus or of Competitors? The Decision Rationales of Financial Managers Under COVID-19 |
title_full_unstemmed | Fear of Virus or of Competitors? The Decision Rationales of Financial Managers Under COVID-19 |
title_short | Fear of Virus or of Competitors? The Decision Rationales of Financial Managers Under COVID-19 |
title_sort | fear of virus or of competitors? the decision rationales of financial managers under covid-19 |
topic | Psychology |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7652787/ https://www.ncbi.nlm.nih.gov/pubmed/33192811 http://dx.doi.org/10.3389/fpsyg.2020.556139 |
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