International Journal of Nonlinear Analysis and Applications

The role of decision-making styles in the health of companies

Document Type : Research Paper

Authors

Department of Accounting, Bonab Branch, Islamic Azad University, Bonab, Iran

Abstract

Economic enterprises, which are likened to humans in terms of their life situation, are born at one time and die in different ways after going through different stages of life. But what is meaningful about the life of economic enterprises is their health and flexibility. The formation of new businesses is an important driver in economic activities and is the main driver of economic development in a country. Therefore, the purpose of this research is to investigate the role of decision-making styles (intuitive, dependent, rational, immediate, and avoidant) on the health of companies (financial health and financial flexibility) in Iran's capital market. In terms of purpose, the present research is applied, and in terms of data collection methods, descriptive-analytical survey based on structural modeling approach. The statistical population of the research is top and middle managers of listed companies and a standard questionnaire was used to collect data. In this research, the causal relationships between decision-making styles and financial health of companies were predicted. The results showed that rational and avoidant decision-making styles affect the health of companies. In other words, rational and avoidant decision-making by company managers increases the financial health and financial flexibility of companies.

Keywords

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International Journal of Nonlinear Analysis and Applications
Volume 16, Issue 3
March 2025
Pages 219-228
  • Receive Date: 13 July 2023
  • Accept Date: 07 October 2023