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The purpose of this viewpoint article is to serve as a discussion starting point regarding organizational leadership’s increasing reliance on AI – in particular, how the technology is used as a supplemental tool for supporting rational decision-making. Practical implications and directions for further research are presented.

With its inception in economics, the concept of rationality has a rich history across multiple research domains. Based on that literature, coupled with the recent advancements in AI, the paper asks: will AI afford organizational leadership the ability to move from making bounded rational decisions to making fully rational decisions? The paper only scratches the surface of such a large question; however, the goal is to start the discussion around the topic.

While bounded rationality supports efficient decision-making, a complete understanding of any given decision is typically limited, and as a result, neither accuracy nor effectiveness is guaranteed. As AI systems grow in speed and accuracy, they should provide positive support for organizational leaders to make fully rational decisions. AI’s ability to collect and organize data, analyze it, and offer decision alternatives may help close the gap between bounded and rational decision-making.

Although AI research is not new, the recent developments in natural language processing engines has rapidly brought about new possibilities for their use in rational decision-making in the business and organizational context. This is fertile ground for future research, particularly in the area of organizational decision-making.

A controversy about whether liberalization through market opening is a necessary and sufficient condition for a stable and balanced growth in the developing countries was retriggered by the 2008 global financial crisis. This paper aims to analyze 1) the impact of market openness on the economic growth and financial development, 2) the dynamic correlation between the compositional change in foreign investments and the returns of domestic financial markets, 3) the effect of foreign portfolio investment on the stock market activity (liquidity and profitability). Our empirical findings infer that the income level has a positive relationship with financial openness and the foreign portfolio investments cause price fluctuations in the domestic stock market. These results imply that the precautionary and effective policies such as prudential regulations on the short-term capital transactions are strongly needed to emerging markets in order to prevent the excessive fluctuations in the financial markets over the macroeconomic fundamentals.

This study employs a multivariate GARCH model to investigate the relative sensitivities of the first and the second moment of bank stock return distribution to the short‐term and long‐term interest rates and their respective volatilities. Three portfolios are formed representing the money center banks, large banks, and small banks, respectively. Estimation and testing of hypotheses are carried out for each of the three portfolios separately. The sample includes daily data over the 1988‐2000 period. Several hypotheses are tested within the multivariate GARCH specification. These include the hypotheses of: (i) insensitivity of bank stock return to the changes in the short‐term and long‐term interest rates, (ii) insensitivity of bank stock returns to the changes in the volatilities of short‐term and long‐term interest rates, and (iii) insensitivity of bank stock return volatility to the changes in the short‐term and long‐term interest rate volatilities. The findings indicate that short‐term and long‐term interest rates and their volatilities do exert significant and differential impacts on the return generation process of the three bank portfolios. The magnitudes and the direction of the effect are model‐specific namely that they depend on whether the short‐term or the long‐term interest rate level is included in the mean return equation. These findings have implications on bank hedging strategies against the interest rate risk, regulatory decisions concerning risk‐based capital requirement, and investor’s choice of a portfolio mix.

State policies have played a significant role in shaping the structure of agrarian economy in both advanced and under‐developed capitalist societies.(1) The influence of the state over the rural sector is not simply confined to its agricultural policies but covers a large array of policies and actions that may have direct as well as indirect effects on the rural population. This paper deals with the factors that influence agricultural policies of the state in the specific case of state policies towards Oriental tobacco production in Turkey.

Examines the mature market, defined as consumers age 50 years or older, and reviews 33 segmentation methods for the mature market and identifies five key segmentation criteria: discretionary income, health, activity level, discretionary time, and response to others. Integrates methods devised by other researchers and provides marketers with a step‐by‐step, actionable segmentation method based on these five criteria. Offers implications for managers.