Complex Systems, Multi-Sided Incentives and Risk Perception in Companies

Most research about financial stability and sustainable growth focuses on the financial sector and macroeconomics and neglects the real sector, microeconomics and psychology issues. Real-sector and financial-sectors linkages are increasing and are a found

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MICHAEL I. C. NWOGUGU

Complex Systems, Multi-Sided Incentives and Risk Perception in Companies

Michael I. C. Nwogugu

Complex Systems, Multi-Sided Incentives and Risk Perception in Companies

Michael I. C. Nwogugu Enugu, Nigeria

ISBN 978-1-137-44703-6 ISBN 978-1-137-44704-3  (eBook) https://doi.org/10.1057/978-1-137-44704-3 Library of Congress Control Number: 2018951551 © The Editor(s) (if applicable) and The Author(s) 2019 The author(s) has/have asserted their right(s) to be identified as the author(s) of this work in accordance with the Copyright, Designs and Patents Act 1988. This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Palgrave Macmillan imprint is published by the registered company Springer Nature Limited The registered company address is: The Campus, 4 Crinan Street, London, N1 9XW, United Kingdom

Contents

1 Introduction 1 1.1 Perception Dynamics Theory 13 1.2 The Unreliability of Empirical Research in Psychology, Complex Systems, Behavioral Game Theory, Behavioral International Political Economy and Behavioral Operations Research 13 1.3 Major Current and Future Trends in Industrial/ Organizational Psychology, Group Decisions and Related Areas of Operations Research (and Which May Affect Financial Stability in Both the Real and Financial Sectors) 14 1.4 Intangible Assets an Real Estate as Major Elements of Organizational Behavior, Corporate Risk, Financial Stability, Evolution and Resource-Efficiency in Companies 18 1.4.1 Equity-Based Incentives (“EBIs”) and Human Capital are Intangible Assets 29 1.5 Some Public Health Implications of Nonlinear Risk and Risk Perception 32 1.6 The Chapters 35 1.7 Mergers/Acquisitions, Leveraged Buyouts and Management Buyouts 45

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Contents

1.8 Stock Indices 48 1.9 Technology Licensing 49 Appendix 1 50 Appendix 2 59 Appendix 3: The Most Significant and/or Largest Economic/