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 |
| Journal | Managerial and Decision Economics |
| Volume | 30 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 2009 |