Words with friends hindsight missing full#
Words with friends hindsight missing professional#

In some jurisdictions, an investigation into the causes of a company's failure is even mandatory.

Also in less high-profile cases of business failure do the local communities or creditors typically appeal for a thorough investigation into the causes of the event. After the Enron bankruptcy in 2001, the collapse of Lehman Brothers in 2008, and more recently the Volkswagen emissions scandal, the public (as well as the authorities) demanded thorough investigations and that those to blame were held accountable. In this regard, corporate “disasters” are not much different. In such cases, people want to know what caused the event and whether there is someone to blame and to be held legally liable for the consequences. Think for example of the sinking of the MS Estonia cruise ferry in 1994, the Deepwater Horizon oil spill in the Gulf of Mexico in 2010, or the Ponte Marandi bridge collapse in Genoa (Italy) in 2018, just to name a few. This contribution is particularly timely considering the many companies that are currently going bankrupt or are facing bankruptcy amidst the COVID-19 pandemic.Īfter a disastrous event, public outcry often follows over who is to blame. In two studies (total N = 1,729), we demonstrate that legal professionals tend to judge a director's actions more negatively and perceive bankruptcy as more foreseeable in hindsight than in foresight and that these effects are significantly stronger for those who endorse the notion that humans have free will. Additionally, to advance our understanding of the mechanisms underlying these biases, we also examine whether free will beliefs can predict susceptibility to hindsight bias and outcome bias in this context.

Words with friends hindsight missing professional#

The present study investigates whether professional legal investigators such as judges and lawyers are affected by hindsight bias and outcome bias when evaluating directors’ conduct in a bankruptcy case.

Words with friends hindsight missing full#

The accurate assessment of directors’ liability can be jeopardized by having to judge in hindsight with full knowledge of the adverse outcome. Following a corporate disaster such as bankruptcy, people in general and damaged parties, in particular, want to know what happened and whether the company's directors are to blame.