How an Unforeseen Economic Crisis from the Coronavirus Affects Financial Strategy and Decision-making in Capital Structures

Jack Joseph

Master's thesis

How does an unforeseen economic crisis affect financial priorities in decision-making and effect capital structures?

Anotácia:

The basis of this study looked into the unforeseen impacts of the coronavirus in the business world. Looking into specifics, a survey was conducted to gain insight into the minds of financial professionals and their strategic shifts in priorities. A look into the relevance of traditional theories like trade off, pecking order, and agency costs were examined. Also, a critical look into the cognitive biases that are at play during an economic shock. Psychological principles like overconfidence and optimism, anchoring, and threat response are measured. This study is a piloted preliminary study into the impact of the coronavirus as the event is taking place. Therefore, it is merely suggestive towards how future research could be conducted.

Abstract:

The basis of this study looked into the unforeseen impacts of the coronavirus in the business world. Looking into specifics, a survey was conducted to gain insight into the minds of financial professionals and their strategic shifts in priorities. A look into the relevance of traditional theories like trade off, pecking order, and agency costs were examined. Also, a critical look into the cognitive biases that are at play during an economic shock. Psychological principles like overconfidence and optimism, anchoring, and threat response are measured. This study is a piloted preliminary study into the impact of the coronavirus as the event is taking place. Therefore, it is merely suggestive towards how future research could be conducted.

Kľúčové slová

Coronavirus, Capital Structure, Behavioral Finance

Keywords

Coronavirus, Capital Structure, Behavioral Finance

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 25. 11. 2019

Obhajoba závěrečné práce

• Obhajoba proběhla 10. 6. 2020
• Vedúci: Barbora Rýdlová
• Oponent: František Poborský

Vysoká škola ekonomická v Praze

Master programme:
Finance and Accounting