Firm Culture

Emotions can influence financial decisions in surprisingly predictable ways. We tend to be overconfident in our own knowledge and decisions, we extrapolate recent trends while dismissing the past, we refuse to accept losses gracefully by hanging on to our… READ MORE ›

The financial crisis has its roots not only in bets on risky assets but also in corporate culture. At a basic cultural level, the global credit crisis demonstrates that we have lost have our way and created a toxicity… READ MORE ›

A few weeks ago, Daniel Kahneman, the Nobel prize-winning psychologist and pioneer of behavioral economics, wrote a fascinating article in The New York Times Magazine that examines the illusion of skill as it… READ MORE ›

Donald MacKenzie gives a sociologist’s perspective on the capital markets and discusses how cultural differences within firms can create valuation discrepancies. Professor MacKenzie also discusses the role of sociology in risk management.