Search results for "risk taking"
showing 10 items of 20 documents
Dynamic Risk Taking with Bonus Schemes
2014
This paper studies dynamic risk taking by a risk-averse manager who receives a bonus; the company may default on its contractual obligations (debt and fixed compensation). We show that risk taking is time independent, and is summarized by the so-called risk aversion of derived utility. We highlight the importance of dynamic aspects and provide a foundation for common qualitative discussions that are based on characteristics of bonus functions. The paper cautions that deferral of fixed compensation may increase risk taking. Finally, we motivate a new bonus scheme that incentivizes the manager to implement the socially optimal risk level.
Actitudes de emprendimiento y los "Cinco Grandes": una compa-ración intercultural entre España y Estados Unidos.
2022
Culture may interact with personality to facilitate or inhibit en-trepreneurial behaviors. 296 undergraduates in the United States and 257 in Spain completed the Big Five Personality Inventory and the Entrepreneur-ial 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 consider-ably by country and gender. Significant…
Towards a methodology to assess organizational learning capability
2011
PurposeThe present study aims to revalidate a measurement scale for organizational learning capability in the context of university faculty members. This is a particularly relevant context because it deals with knowledge‐intensive services. Following Chiva et al., organizational learning capability was conceptualized as a second factor construct including five dimensions: experimentation, risk taking, interaction with the external environment, dialogue and participative decision making.Design/methodology/approachData were collected from the Instituto Tecnológico de Costa Rica, a leading university in Costa Rica. The survey was addressed to faculty members. A total of 795 valid questionnaire…
Not all high-alexithymia individuals are risk-takers: private self-consciousness moderates the relationship between alexithymia and risk-taking behav…
2016
This article concerns the influence which alexithymia exerts on risk-taking. In particular, alexithymia is seen as a factor which encourages risk-taking as it allows high-alexithymia individuals to feel emotions which are sufficiently intense to compensate for their deficit of emotional awareness. In this connection, we make the hypothesis that alexithymia’s influence is moderated by private self-consciousness (SC). This is because private SC increases the likelihood that high-alexithymia individuals become aware of their risk-taking tendency and that this tendency is discrepant with their pro-safety standards (‘putting someone in danger is bad’) or self-schemas (‘I am a responsible person’…
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…
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.
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.
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…
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…
The Relationship between Risk-Taking, Sensation-Seeking, and the Tourist Behavior of Young Adults: A Cross-Cultural Study
2004
This study analyzed the effects of the combined psychological characteristics of risk-taking and sensation seeking on the travel behavior and preferred tourist activities of young adults on leisure trips. The results of this cross-cultural study, which was conducted among 1,429 students at 11 universities located in 11 different countries, found that respondents with high combined risk-taking and sensation seeking (RSS) scores differed significantly in their travel behavior, mode of destination choice, preferred tourist activities and demographics, from those who had low RSS scores. The study also discovered a significant difference between nationalities on RSS scores.