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Factors Affecting Changes in Managerial Decisions
Author(s) -
Woodard Joshua D.,
Chiu Leslie Verteramo,
Power Gabriel,
Vedenov Dmitry,
Klose Steven
Publication year - 2017
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/agr.21496
Subject(s) - econlit , production (economics) , business , time horizon , marketing , agriculture , actuarial science , economics , finance , microeconomics , ecology , medline , political science , law , biology
It is commonly held that revealed managerial decisions depend on the interaction of risk attitudes and preferences, as well as market and firm conditions. In agriculture, production plans can have a horizon of a few months to several years. However, it is not always the case that managers follow through on their plans once established. The purpose of this paper is to investigate factors that contribute to changes between managers’ planned decisions and eventual actions. A unique dataset consisting of farm financial data, consultant generated production plans, and a follow‐up producer survey was constructed with participants in the Texas FARM‐Assistance program. We evaluate the effects of managers’ behavioral attributes, farm financial indicators, and production characteristics on the decision to follow through on business plans. Our findings provide new insights into the decision‐making and planning processes of managers under risky market conditions, and the interactions of same with behavioral characteristics. [EconLit citations: Q12; Q13; Q14; D22; G02].