The varying roles played by emotion in economic decision making
Emotions play complex roles in economic decision-making, particularly those involving risk. We discuss recent scholarship documenting three different entry points at which emotion can influence decision-making. First, decisions can be influenced by anticipated emotions , the feelings people forecast that they will experience once the outcomes of their decisions are revealed. Second, decisions can be swayed by immediate emotions , feelings felt at the time of decision. Immediate emotions fall into two categories. First are background emotions , or feelings people just happen to feel for incidental reasons at the time they make a decision. Second are action-related emotions , or feelings evoked as participants consider each decision option open to them. We discuss how emotions evoked at different entry points can lead to mixed emotions as people consider their choices.
Based on agency theory, this study first established the relationship between CEO duality and the choice of partial acquisition. Putting agency theory, resource-based view and institutional theory together, this study further examined how some firm and institutional factors moderate this relationship. Using secondary data collected from firms listed in the two stock exchanges in China mainland, we find duality CEOs prefer partial acquisition over the other FDI entry modes, and this preference may be changed by firm resources, such as firm size and firm international experience, and institutional factors, such as formal institutional distance.