Intuitive Expertise and Financial Decision-Making

✍ Scribed by Michael Grant, Fredrik Nilsson

• Publisher: Routledge
• Year: 2022
• Tongue: English
• Leaves: 125
• Series: Routledge Focus on Accounting and Auditing
• Category: Library

✦ Synopsis

This book provides insights into the hidden role of intuitive expertise in financial decision-making. The authors show and discuss how expertise combined with intuitive judgments positively affect decision-making outcomes.

The book builds on the latest academic studies in this emergent field. In combination with the academic perspective, the authors provide a field study that they conducted in the context of mergers and acquisitions (M&As), a common and critical strategic investment for companies. The interviews were carried out with experts and decision-makers in large and successful international companies (i.e., M&A experts, CEOs, CFOs, and board members). The book provides a solid theoretical and empirically based grounding of the topic. In addition, it offers suggestions to practitioners on how they can develop and nurture intuitive expertise in strategic investment decision-making. The report of the field study provides examples and quotes from interviews to visualize findings, thus helping practitioners gain understanding and insights from the text. The authors also discuss the downsides of intuitive expertise, such as biases and flawed decision-making.

For scholars, students, and professionals, the book offers a concise and up-to-date summary of an emergent stream of research, exploring how cognition and judgment affect financial decision-making.

✦ Table of Contents

Cover
Half Title
Series Page
Title Page
Copyright Page
Table of Contents
Preface
1 Introduction
1.1 Intuitive expertise
1.2 Financial decision-making
1.3 A guide to the reader
2 Experts and expertise
2.1 Defining expertise
2.2 Expertise is domain and task dependent
2.3 Becoming an expert
2.4 Neural and memory mechanisms
2.5 Summary
3 Intuition
3.1 Defining intuition
3.2 Emotions and affect
3.3 Dual-process theories
3.4 Heuristics and biases
3.5 Summary
4 Intuitive expertise
4.1 Defining intuitive expertise
4.2 Conditions for effective use of intuitive expertise
4.3 Field studies of intuitive expertise
4.4 Summary
5 The empirical study
5.1 The characteristics of intuitive expertise
5.2 The development of intuitive expertise
5.3 The use of intuitive expertise
5.4 Areas of expertise
5.5 Articulating intuition and social dynamics
5.6 Summary
6 Conclusions
6.1 A framework for intuitive expertise
6.2 Financial decision-making and the role of intuitive expertise
6.3 Implications and future research
Appendix A: Methods
Appendix B: Description of interviewees
Index