Author

  • Mian Numan Raheem

    • University of Education Lahore, Pakistan
    • Pakistan

  • M. Adrees

    • University of Education Lahore, Pakistan
    • Pakistan

Abstract

This study evaluated the effect of risk and uncertainty factors on financial decision making. The long-term goals and ways for achievement are constantly attached with uncertainty since we don’t know the circumstances, either positive or negative, which happen later. Uncertainty is a key logical factor that influences the dynamic. The reason for this investigation is to check how risk and factors of uncertainty impact the financial aspects of a firm. The risk factors incorporate, financial risk, market fluctuations hazards, fluctuation of unfamiliar and loan costs. Uncertainty factors incorporate political, monetary and environmental uncertainty. The results reveal that management knowledge and expertise related to these factors are utmost important for effective decision making and sustainable growth.

Keywords

References

  • Breckenridge, S. R. & Taplin, I. M. (2009). Managerial uncertainty as a feature of organizational form: A sociological perspective. Journal of Business and Industrial Marketing, 24(7), 487–495.
  • Demir, C. (2019). Macroeconomic Determinants of Stock Market Fluctuations: The Case of BIST-100, 7(1).
  • Gärling, T., Fang, D., Holmen, M. & Michaelsen, P. (2020). Financial risk-taking related to individual risk preference, social comparison and competition. Review of Behavioral Finance, ahead-of-print.
  • Hamid, F. S., Rangel, G. J., Taib, F. M. & Thurasamy, R. (2013). The relationship between risk propensity, risk perception and risk-taking behavior in an emerging market. International Journal of Banking and Finance, 10(1), 134–146.
  • Holanda, L., Nobre, N., Grable, J. E., Vieira, W. & Pq, B. P. (2018). Managerial risk-taking: a conceptual model for business use. Management Decision, 56(11), 2487–2501.
  • Igwe, A. (2016). Impact of fiscal policy variables on economic growth in Nigeria (1970-2012): a managerial economics perspective. Investment Management and Financial Innovations, 12(2), 169–179.
  • Jianu, I. (2017). The impact of financial risks on economic growth in EU-15. Theoretical and Applied Economics, XXIV(1), 23–44.
  • Johansson, S., Kullström, M., Björk, J., Karlsson, A. & Nilsson, S. (2020). Digital production innovation projects – The applicability of managerial controls under high levels of complexity and uncertainty. Journal of Manufacturing Technology Management, ahead-of-print.
  • Knipes, B. & Gauthier, J. (2012). Antecedents and implications of uncertainty in management. Management History, 18(2), 200–218.
  • Krishtaleva, T. I., Gureeva, E. A. & Rykova, I. N. (2020). Risk-oriented approach to managing the social market economy. International Journal of Sociology and Social Policy.
  • Kumbhakar, S. C. (2002). Empirical Risk preference and productivity measurement under output price uncertainty. Empirical Economics, 27(3), 461–472.
  • Law, M. (2003). MNEs, Globalisation and Digital Economy: Legal and Economic Aspects by Dr. Georgios I Zekos. Managerial Law, 45(1/2), 1–12.
  • Linn, T. & Maenhout, B. (2019). The impact of environmental uncertainty on the performance of the rice supply chain in the Ayeyarwaddy Region, Myanmar. Agricultural and Food Economics, 7(1), 1–29.
  • Marra, M., Pannell, D. J. & Abadi Ghadim, A. (2003). The economics of risk, uncertainty and learning in the adoption of new agricultural technologies: where are we on the learning curve. Agricultural Systems, 75(2–3), 215–234.
  • Monjed, H. & Ibrahim, S. (2020). Risk disclosure, income smoothing and firm risk smoothing. Journal of Applied Accounting Research, 21(3), 517–533.
  • Myšková, R. & Doupalová, V. (2015). Approach to Risk Management Decision-Making in the Small Business. Economics and Finance, 34(15), 329–336.
  • Noy, E. & Ellis, S. (2003). Risk: A neglected component of strategy formulation. Journal of Managerial Psychology, 18(7–8), 691–707.
  • Roeser, S. (2010). Intuitions, emotions and gut reactions in decisions about risks: towards a different interpretation of ‘neuroethics’. Journal of Risk Research, 13(2), 175–190.
  • Salehi, M., Afzal Aghaei Naeini, A. & Rouhi, S. (2020). The relationship between managers’ narcissism and overconfidence in corporate risk-taking. TQM Journal.
  • Salman, A. K. & Fuchs, M. (2015). Assessing risk factors of business failure in the manufacturing sector: a count data approach from Sweden. International Journal of Economics, Commerce and Management, United Kingdom, III(9), 42–62.
  • Santacruz, L. (2019a). Measures of firm risk-taking: revisiting Bowman’s paradox. Managerial Finance, 46(3), 421–434.
  • Santacruz, L. (2019b). Measures of firm risk-taking: revisiting Bowman’s paradox. Managerial Finance, 46(3), 421–434. https://doi.org/10.1108/MF-09-2019-0466
  • Sheaffer, Z., Sarfaty, S., Group, P. & Aviv, T. (2011). Leadership attributes, masculinity and risk-taking as predictors of crisis proneness. Gender in Management: An International Journal, 26(2), 163–187.
  • Shou, Y., Hu, W., Kang, M. & Park, Y. W. (2018). Risk management and firm performance: the moderating role of supplier integration. Industrial Management and Data Systems, 118(7), 1327–1344.
  • Smolarski, J. M., Wilner, N. & Vega, J. G. (2019). Dynamic transfer pricing under conditions of uncertainty – the use of real options. Journal of Accounting and Organizational Change, 15(4), 535–556.
  • Sniazhko, S. (2019). Uncertainty in decision-making: A review of the international business literature. Cogent Business & Management, 6(1), 1650692. https://doi.org/10.1080/23311975.2019.1650692
  • Ulibarri, N. (2019). Collaborative governance: a tool to manage scientific, administrative, and strategic uncertainties in environmental management? Ecology and Society, 24(2).
  • Zhang, L. (2018). Procurement risk management under uncertainty: a review. Industrial Management & Data Systems, 118(7), 1547–1574.
  • Zsidisin, G. A., Panelli, A. & Upton, R. (2000). Purchasing organization involvement in risk assessments, contingency plans, and risk management: an exploratory study. Supply Chain Management, 5(4), 187–197.

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Raheem, M. N., & Adrees, M. (2021). The Effect of Risk and Uncertainty Factors on Managerial Decision Making. Journal of Education and Vocational Research, 12(1(V), 30-37. https://doi.org/10.22610/jevr.v12i1(V).3239

Share this article

License

Copyright (c) 2021 Mian Numan Raheem, M. Adrees (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team  edits and formats manuscripts to bring uniformity and standardization in published material.

This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.

Keywords

Section

Research Paper

Published in

Vol. 12 No. 1(V) (2021) Sustainability, Numeracy & Decision-Making View issue contents

Published

2021-11-16

Submissions

Have research to publish? Journal of Education and Vocational Research welcomes submissions.

Make a Submission