Accounting information and its impact on the psychology of managerial decision-making

• Published in: Problems of Theory and Methodology of Accounting, Control and Analysis no. 1(60); pp. 31 - 36
• Main Author: Marchyshyn, N.Ya
• Format: Journal Article
• Language: English
• Published: 30.04.2025
• ISSN: 1994-1749
• DOI: 10.26642/pbo-2025-1(60)-31-36

In the modern economic environment, which is characterized by constant changes, the study of the influence of psychological and behavioral factors on the process of making managerial decisions becomes especially relevant. Cognitive biases, emotional states and intuitive reactions of managers can distort the objective perception of financial information, which often leads to irrational decisions and strategic errors. Behavioral economics offers new approaches to understanding these processes, aimed at minimizing the impact of destructive factors and increasing management efficiency. In this context, the correct perception, interpretation and use of accounting information are key to reducing risks and preventing financial losses or bankruptcy. The study of psychological aspects of management activity opens up opportunities for improving accounting and strategic practices, contributing to improving the quality of decision-making in the field of finance and management. The study found that accounting information, despite its objectivity, is subject to the influence of psychological factors, such as cognitive biases, emotions, and bounded rationality, which directly affect the process of making managerial decisions. It was analyzed how these psychological factors change the perception and interpretation of financial data, which often leads to irrational decisions. The study also showed that the use of behavioral economics methods and structured approaches to the analysis of accounting information can reduce the influence of these psychological factors, increasing the accuracy and effectiveness of managerial decisions.