Enrichment : Journal of Management
Vol. 12 No. 5 (2022): December: Management Science And Field

Negative Effects of Framing and Adverse Selection on the Commitment Escalation in Investment Decision Making

Dina Puspita Sari (Andalas University)
Annisaa Rahman (Andalas University)



Article Info

Publish Date
24 Nov 2022

Abstract

Commitment escalation is a decision making to increase or expand commitments in a particular project or investment even if the project or investment indicates failure. This research aims to obtain empirical evidence from the influences of adverse selection and negative framing on the tendency to escalate commitments. This study used a 2x2 factorial experimental design with a case instrument. Participants in this study were S2 students in the Master of Management and Master of Accounting programs as proxy managers selected with purposive sampling techniques. This study has taken 72 Financial Management and Management Accounting courses. The analytical technique used ANOVA two ways. The results indicate that adverse selection affects the tendency of commitment escalation. In addition, this study also proves the tendency for escalation of commitments influenced by negative framing

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Journal Info

Abbrev

enrichment

Publisher

Subject

Economics, Econometrics & Finance

Description

The Enrichment : Journal of Management offers wide ranging and widespread analysis of all surfaces of management and science. Published two times per year, it delivers a emphasis for universal proficiency in the vital methods, techniques and areas of research; presents a opportunity for its readers ...