Search results for "Risk taking"
showing 10 items of 20 documents
Behavioral and Electrophysiological Arguments in Favor of a Relationship between Impulsivity, Risk-Taking, and Success on the Iowa Gambling Task
2019
The aim of the present study was to investigate the relationship between trait impulsivity, risk-taking, and decision-making performance. We recruited 20 healthy participants who performed the Iowa Gambling Task (IGT) and the Balloon Analog Risk Task (BART) to measure decision-making and risk-taking. The impulsivity was measured by the Barratt Impulsiveness Scale. Resting-state neural activity was recorded to explore whether brain oscillatory rhythms provide important information about the dispositional trait of impulsivity. We found a significant correlation between the ability to develop a successful strategy and the propensity to take more risks in the first trials of the BART. Risk-taki…
Conspiracy Beliefs Are Related to the Use of Smartphones behind the Wheel
2021
The belief in conspiracy theories predicts behaviors related to public health such as the willingness to receive vaccines. This study applies a similar approach to an aspect of road safety: the use of smartphones while driving. A representative sample of 1706 subjects answered a series of questions related to what can be regarded as erroneous or conspiracy beliefs against restricting or banning the use of smartphones while driving. The results show that those having such conspiracy beliefs reported a greater use of smartphones behind the wheel.
How Bonus Deferral Changes Risk Taking
2012
We characterize continuous-time risk taking and show that the introduction of deferral increases risk taking at any time when the realized asset value is large or small. For realized asset values in-between we derive the parameterizations of deferral for which risk taking decreases and discuss trade-offs in setting the deferral parameters.
Does bonus deferral reduce risk-taking?
2015
AbstractThe common thinking that deferring bonus payments makes an agent more risk averse isfalse. We characterize continuous-time risk taking and show that the introduction of deferralincreases risk taking at any time when the realized asset value is large or small. For realizedasset values in-between we characterize the parameterizations of deferral for which risk tak-ing decreases and discuss trade-offs in setting the deferral parameters.Keywordsbonus, risk taking, risk aversion, deferral ratioJEL Classi cationG28, G38 ∗ This paper circulated previously under the title \Bonus Deferral Does Not Choke Excessive Risk Taking."We are grateful for comments and suggestions from seminar participa…
Hormonal changes after competition predict sex‐differentiated decision‐making
2019
Entrepreneurship attitudes and the Big Five: a cross-cultural comparison between Spain and the United States
2022
Abstract Culture may interact with personality to facilitate or inhibit entrepreneurial behaviors. 296 undergraduates in the United States and 257 in Spain completed the Big Five Personality Inventory and the Entrepreneurial Attitudes Scale for Students (Mean age = 20.16 years; SD = 3.39). We hypothesized that across cultures, conscientiousness and openness would predict greater risk taking whereas neuroticism and agreeableness would be a negative correlate. Personality variables explained a larger proportion of the variance in entrepreneurial attitudes in the U.S. data. The associations between the personality dimensions and entrepreneurship varied considerably by country and gender. Signi…
CEO Compensation and Risk-Taking: Evidence from Listed European Hotel Firms
2020
This paper examines the relationship between CEO compensation policies and financial performance in the European hotel sector. We analyze CEO cash-, equity- and total-compensation relationships with two accounting-based and two market-based financial performance proxies, including a bi-dimensional proxy formed by stock market return and risk. This bi-dimensional market-based financial performance proxy enables us to take a deep dive into the relationship between CEO compensation policies and firm risk-taking. We then analyze the nature of this relationship by decomposing market-based risk into systematic and idiosyncratic risk, using five alternative asset-pricing factorial models. Our resu…
Asymmetry of CEO Compensation and the Role of Relative and Macroeconomic Shocks in Risk Taking Incentives
2015
If managers are risk-averse and compensation schemes are not directly linked to shareholder wealth, incentives to allocate effort to manage effects of relative and macroeconomic shocks may be distorted. In this paper we develop a simple model to identify factors that determine the optimal allocation of effort to manage relative and macroeconomic shocks. We then show how serial correlation in shocks, the relative variance of shocks and the ability of managers to influence the effects of shocks on shareholder wealth determine the optimal allocation of managerial effort. Thereafter, we emphasize how CEO compensation depends on performance variables distinguishing between relative and macroecon…
GOVERNANCE-BASED ACQUISITIONS AND RISK TAKING IN BANKING
2008
We examine the market for corporate control in banking when strategic acquisitions are driven by the different governance structures of commercial and savings banks. In contrast to profit-maximizing entities, we show that savings institutions can have acquisition incentives from their peculiar governance and ownership structure. Governance-based acquisition incentives, which interact with the specifics of the loan market in affecting bank risk taking, can arise when acquisitions take place sequentially or simultaneously, and also when financial intermediaries affect risk taking directly through the target return of investments or indirectly through the loan interest rate.
Risk Taking by Banks in the Transition Countries
2007
The banking sectors of the transition countries have progressed remarkably in the last 15 years. In fact, banking in most transition countries has largely shaken off the traumas of the transition era. At the start of the 21st century banks in these countries look very much like banks elsewhere. That is, they are by no means problem free but they are struggling with the same issues as banks in other emerging market countries. There have been a surprisingly large number of studies that have told us about the performance of these banks but we know very little about their risk taking behaviour and how the banking environment influences it.