The Informational Content of the Shape of Utility Functions: Financial Strategic Behavior

J.M.E. Pennings; P. Garcia

doi:10.1002/mde.1439

The Informational Content of the Shape of Utility Functions: Financial Strategic Behavior

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

Recently, pennings and smidts (2003) showed a relationship between organizational behavior and the global shape of the utility function. Their results suggest that the shape of the utility function may be related to ‘higher-order’ decisions. This research examines the relationship between financial strategic decisions and the global shape of the utility function of real decision makers. We assess the shape of utility functions of portfolio managers and show that the global shape is related to their strategic asset allocation. The findings demonstrate the informational content of the shape of utility functions in the context of financial strategic behavior.

Original language	English
Pages (from-to)	83-90
Number of pages	8
Journal	Managerial and Decision Economics
Volume	30
DOIs	https://doi.org/10.1002/mde.1439
Publication status	Published - 1 Jan 2009

Access to Document

10.1002/mde.1439

Cite this

@article{26f995b54d8a4e49a0ed9ca853da5cc5,

title = "The Informational Content of the Shape of Utility Functions: Financial Strategic Behavior",

abstract = "Recently, pennings and smidts (2003) showed a relationship between organizational behavior and the global shape of the utility function. Their results suggest that the shape of the utility function may be related to {\textquoteleft}higher-order{\textquoteright} decisions. This research examines the relationship between financial strategic decisions and the global shape of the utility function of real decision makers. We assess the shape of utility functions of portfolio managers and show that the global shape is related to their strategic asset allocation. The findings demonstrate the informational content of the shape of utility functions in the context of financial strategic behavior.",

author = "J.M.E. Pennings and P. Garcia",

year = "2009",

month = jan,

day = "1",

doi = "10.1002/mde.1439",

language = "English",

volume = "30",

pages = "83--90",

journal = "Managerial and Decision Economics",

issn = "0143-6570",

publisher = "John Wiley & Sons Inc.",

}

TY - JOUR

T1 - The Informational Content of the Shape of Utility Functions: Financial Strategic Behavior

AU - Pennings, J.M.E.

AU - Garcia, P.

PY - 2009/1/1

Y1 - 2009/1/1

N2 - Recently, pennings and smidts (2003) showed a relationship between organizational behavior and the global shape of the utility function. Their results suggest that the shape of the utility function may be related to ‘higher-order’ decisions. This research examines the relationship between financial strategic decisions and the global shape of the utility function of real decision makers. We assess the shape of utility functions of portfolio managers and show that the global shape is related to their strategic asset allocation. The findings demonstrate the informational content of the shape of utility functions in the context of financial strategic behavior.

AB - Recently, pennings and smidts (2003) showed a relationship between organizational behavior and the global shape of the utility function. Their results suggest that the shape of the utility function may be related to ‘higher-order’ decisions. This research examines the relationship between financial strategic decisions and the global shape of the utility function of real decision makers. We assess the shape of utility functions of portfolio managers and show that the global shape is related to their strategic asset allocation. The findings demonstrate the informational content of the shape of utility functions in the context of financial strategic behavior.

U2 - 10.1002/mde.1439

DO - 10.1002/mde.1439

M3 - Article

SN - 0143-6570

VL - 30

SP - 83

EP - 90

JO - Managerial and Decision Economics

JF - Managerial and Decision Economics

ER -