Designing a wisdom model in promoting thick decision-making in the capital market

Subject Areas : Investments

Azizollah Askarzadeh ¹ , Allah Karam Salehi ² , Saber MollaAlizadeh Zavardehi ³ , Reza Tehrani ⁴

1 - Department of Finance, MasjedSoleiman Branch, Islamic Azad University, MasjedSoleiman, Iran.
2 - Department of Accounting, MasjedSoleiman Branch, Islamic Azad University, MasjedSoleiman, Iran.
3 - Department of Industrial Engineering, MasjedSoleiman Branch, Islamic Azad University, MasjedSoleiman, Iran.
4 - Department of Finance, University of Tehran, Tehran, Iran.

Received: 2023-04-30 Accepted : 2023-08-06 Published : 2024-01-27

Keywords: Stakeholder integration, Sustainable value creation, Thick decision-making, Wisdom.,

Abstract :

Objective: With increasing environmental complexities in market structures, the agency cost gap between companies and shareholders has deepened daily. CEO power plays a crucial role as an important criterion in creating interest discrimination between shareholders and managers or balancing interests. Therefore, this research aimed to design a wisdom model for promoting thick decision-making in the capital market. Research Methodology: This research is exploratory in terms of purpose, developmental in terms of results, and mixed in terms of data type. In the qualitative phase, a wisdom model was presented to promote thick decision-making in the capital market using a grounded theory approach, through interviews with 22 experts in industrial management and finance, including managers and university professors. Then, in the quantitative phase, with the participation of 80 professors, doctoral students, and managers from various levels of the top 50 capital market companies, the designed qualitative model was evaluated using structural equation modeling. Findings: The results indicate that managerial wisdom towards pluralism of shareholder and stakeholder values is influenced by the risk arising from multiple information sources. In cost-oriented components, factors such as facilitating access to organizational financial resources are influential. Market-oriented components include facilitating access to extra-organizational financial resources, while bio-oriented components are affected by the global economy's shift towards a circular economy. Originality/Scientific Value: The research findings can contribute to implementing wisdom strategies for promoting pluralistic social values, which can lead to increased decision legitimacy from stakeholders' perspectives, competitive effectiveness, reduced conflicts of interest in decision-making, and emphasis on social dimensions.

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