The Overconfidence Behavioral Bias in Working Capital Management and Performance of Small and Medium Enterprise in Ghana: A Conceptual Paper

  • Jeff Lamptey Faculty of Economics and Business, Universiti Malaysia Sarawak (UNIMAS)
  • Asri Bin Marsidi Faculty of Economics and Business, Universiti Malaysia Sarawak (UNIMAS)
  • Bilyaminu Usman Faculty of Economics and Business, Universiti Malaysia Sarawak (UNIMAS)
  • Ashemi Baba Ali Department of Economics, University of Maiduguri, Borno State, Nigeria
Keywords: overconfidence small and medium enterprise, working capital management, performance

Abstract

The concept of overconfidence is well understood in the financial market and corporate decision as individual investors and managers of large corporations prone to overconfident bias. This paper is the first to conceptualize overconfidence bias in working capital management and performance of Small and medium enterprises by employing qualitative case study inquiry to gain insight and SME managers overconfident behavior. This paper argues that overconfidence bias can distort working capital investment with the possibility of overinvestment working capital inventory if SME managers have enough internal equity in anticipation of higher performance.

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Published
2020-07-10
How to Cite
Lamptey, J., Marsidi, A., Usman, B. and Ali, A. (2020) “The Overconfidence Behavioral Bias in Working Capital Management and Performance of Small and Medium Enterprise in Ghana: A Conceptual Paper”, Malaysian Journal of Social Sciences and Humanities (MJSSH), 5(7), pp. 124 - 129. Available at: https://msocialsciences.com/index.php/mjssh/article/view/438 (Accessed: 5August2020).
Section
Articles