Abstract
The aim of this paper is to explore the determinants of firm investment decision under the manager’s psychological characteristic. Previous research investigating the relationship between overconfidence and financial decisions has studied investment, financing decisions and firm values. However, there are only a few exceptions to examine how a managerial emotional bias (optimism, loss aversion and overconfidence) affects firm investment cash flow sensitivity. This stream of research contends whether to firm investment cash flow sensitivity or not depends on how managers perceive of the company’s future. We introduce an approach based on bayesian network technique with a series of semi-directive interviews. The originality of this research paper is guaranteed since it traits the behavioral corporate policy choice in emergent markets. In the best of our knowledge this is the first study in the Tunisian context that explores such area of research. Ours results show that investment nature analysis by introducing behavioral dimension enriched organizational financial theory: leader affected by behavioral biases presence prefer asset specificity high level allowing this protect against the takeover operation Russianness.