Abstract

This article is focused on tackling the issue of the impact of the bank CEO’s emotional bias on the Tunisian banks’ performance level while accounting for the mediating role of the control systems....

Highlights

  • The literature of behavioral finance has matured to the point where one can study the indirect trajectory of the relationship between behavioral biases and performance

  • We have set up a survey of some CEOs of Tunisian banks listed on the Tunis Stock Exchange in the post-revolution period

  • The analysis of the data collected showed that the behavioral dimension of the Tunisian Bank CEO affects the combination of control systems and the performance of Tunisian banks

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Summary

Introduction

The literature of behavioral finance has matured to the point where one can study the indirect trajectory of the relationship between behavioral biases and performance. Behavioral literature is attentive about the impacts of emotional bias on financial decisions. The effect of bank’s regional CEO’s emotional bias on bank performance is a complex phenomenon that can go beyond the simple direct effect. With respect to the organizational architecture theory, organizational performance is defined as the practice of co-locating decision-making rights and specific knowledge at a lower cost (Brickley, Zimmerman, & Smith, 2008). An efficient organizational architecture results in a ABOUT THE AUTHORS. Yasmine Souissi is a PhD student in Finance. Her main research interests are related to corporate finance, and behavioral finance business

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