Prioritizing Managers' Financial Behavioral Biases on Banks' Liquidity Control (AHP approach)

اقتصاد پولی مالی

Articles in Press, Accepted Manuscript, Available Online from 08 January 2025

Document Type: پژوهشی

DOI: 10.22067/mfe.2025.90764.1472

Authors

Nasrin Hashemizadeh^{* 1}; Mohammad Javad mohagheghnia²

¹کارشناس اقتصادی/سیاست های رابردی اقتصاد و مدیریت

²Associate Professor of Finance and Banking Department of Allameh Tabatabai University

Abstract

Today’s behavior regarding risk control and using appropriate management tools can strengthen banks' performance in face of financial challenges. The aim of present study is to prioritize behavioral biases of managers on liquidity control of banks in Iran. In order to achieve this goal, a questionnaire was designed using AHP approach and completed by 50 bank managers. In designed questionnaire, three liquidity control criteria in Iranian banks, influential behavioral biases, and control variables for behavioral biases were compared in pairs. Then, using AHP approach, decisions made by bank managers were prioritized. The main results of study showed that among liquidity control criteria, the advertising and deposit attraction sub-criterion is affected with a higher priority than behavioral biases. Also, among the behavioral biases affecting the liquidity control criterion, the mental accounting sub-criterion had a higher priority in affecting liquidity control criterion than others. Among criteria for controlling behavioral biases, sub-criteria of managerial experience and manager gender had a higher priority on behavioral biases, which indicates that bank managers tend to classify and code liquidity in different categories in liquidity control through advertising and deposit attraction. In general, the results show role of different financial manager experience and gender of managers more clearly. Therefore, bank planners and heads can benefit from the results of the study in better control of bank liquidity.

Keywords

Liquidity control; behavioral biases; cognitive errors; finance; behavioral economics

References