Kaiserslautern - Fachbereich Wirtschaftswissenschaften
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Capital budgeting or investment decisions have an essential influence on companies’ performance. Instead of a rational choice, capital budgeting might be regarded as a process of reality construction. Research suggests that decision makers have only limited control over their own cognitive biases in this construction process. It is in this perspective that this paper intends to answer the following research question: What are behavioral determinants for a successful capital-budgeting decision process? The authors identify and discuss three behavioral success factors (reflective prudence, critical communication and outcome independence) for five stages of the capital budgeting process against the backdrop of the findings of the managerial and organizational cognition theory and cognitive psychology.
By mapping the boundaries of Kant’s categorical imperative to the point where it permits the committing of a crime against Hume’s three principles of justice, it shall be demonstrated how far the area is in which these two concepts persist alongside each other and how narrow the border zone is in which they do not. Indeed, the latter is a forbidden place that can only be accessed through destiny and never by choice. Whoever is witnessed to stay there, must wish for Justice to draw her sword against him, and whoever dares to try reaching it, will only wander about a deserted land where both justice and morality are left behind.