Abstract
The purpose of this study is to identify the effects of risk aversion, which are dishonesty, ambiguity and ethical behaviour. The first and third phase of this studies involve of completing a questionnaire to identify participant level of dishonesty and ethical behaviour. The second phase involves an experiment adapted from Ellsberg’s which we identify participant tendency of risk taking on ambiguity condition. In this study we found that dishonesty has a negative effect on risk aversion meanwhile ambiguity and ethical behaviour have positive effect on risk aversion. Even though the result of ambiguity has positive effect on risk aversion, but this result has shown an insignificant effect. In the future, researchers are suggested to emphasize the risk for indicating the ambiguity on risk aversion.
Highlights
IntroductionRisk is known as something that will be affecting in every decision that every individual takes
The same can be said about the general population risk aversion toward dishonesty, ambiguity, and ethical behaviour
The focus of the study here is to have a better understand the connection between dishonest, ambiguity and ethical behaviour correlate to risk-averse
Summary
Risk is known as something that will be affecting in every decision that every individual takes. How many people who are willing to take risk are depending on their preference? There are two types of people on taking risks, one who is a risk aversion and the other one is risk taking. Risk taking is seen as a good thing because people have great desire to achieve their goals and concern about the long-term goal either, but for someone who keeps taking risk, he will suffer a huge loss if he are very confidence on the opportunity which will occur. Risk aversion is for someone who dislikes risk and would prefer the lower risk. The reason why risk aversion people dislike risk is that they are fear of failure and only concern about the short-term goals
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Economics & Management Sciences
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
