Negativity Bias in Investors’ Reactions to Board of Directors’ Risk Oversight Disclosure

This study examined the organizational risk readiness, extent of practices, and level of risk exposure of microfinance institutions in Ilocos Norte and determined whether organizational risk readiness predicts the degree of risk exposure. The study utilized a quantitative research design employing descriptive and inferential statistical methods. Data were collected from 116 staff members of selected microfinance institutions in Ilocos Norte using a structured survey questionnaire. The data were analyzed using mean, composite mean, and multiple linear regression analysis. Findings revealed that microfinance institutions in Ilocos Norte demonstrate a very high level of organizational risk readiness, with an overall mean of 5.68, interpreted as “Very Ready.” This indicates that risk governance structures, policies, technological capacity, financial resilience, and monitoring systems are well established within the institutions. In terms of operational practices, the results showed that the extent of practices of microfinance institutions is “Almost Always Practiced,” with an overall mean of 5.87. Among the service areas, micro-savings services obtained the highest composite mean, followed by microinsurance and microcredit services, while fund transfer services obtained the lowest composite mean, although all were still interpreted as almost always practiced. Despite the high level of readiness and consistent practices, the results revealed that microfinance institutions experience a high level of risk exposure, with an overall mean of 2.89 interpreted as “High Exposure.” Among the risk categories, liquidity risk obtained the highest exposure, followed by operational risk and credit risk, while market and external risk obtained the lowest exposure, though still classified as high. Regression analysis further showed that selected components of organizational risk readiness significantly predict risk exposure. Specifically, Risk Monitoring, Reporting and Compliance significantly predicted Credit Risk, while Risk Governance significantly predicted Operational Risk, Liquidity Risk, and Market and External Risk at the 0.05 level of significance. These findings suggest that governance structures and monitoring systems play critical roles in influencing the level of institutional risk exposure. Based on the findings, the study proposes a Strategic Risk Management Framework for Microfinance Institutions in Ilocos Norte aimed at strengthening governance, monitoring systems, operational resilience, liquidity stability, and market adaptability. The framework seeks to bridge the gap between organizational readiness and actual risk outcomes to enhance institutional sustainability and resilience in the microfinance sector.

Operational risk has been receiving increasing attention, both in academic research and in practice. We discuss ways of quantifying operational risk with a specific focus on manufacturing companies. In line with interpretations that depict the operations of a company using material, financial and information flows, we extend the idea of overlaying the three flows with risk flow to assess operational risk. We demonstrate the application of the risk flow concept by discussing a case study with a consumer goods company.We implemented the model in six phases using discrete-event and Monte Carlo simulation techniques. Results from the simulation are evaluated to show how specific parameter changes affect the level of operational risk exposure for this company. Inventory as a means of risk mitigation in the network is discussed and results are presented.

Although many positive psychology interventions like mindfulness-based treatments (MBTs) for youth have been used with a wide array of risk exposed populations (children living in poverty, victims of violence, displaced persons, children with disabilities, etc.), the efficacy of MBTs with regard to the level and domain of risk exposure has been largely overlooked. This oversight contributes to a perception of positive psychology as being decontextualized. The purpose of this meta-analysis is to better understand how a young person’s level and domain of risk exposure influences the efficacy of MBTs. Published studies were included if participants were children or adolescents, were RCTs or cluster RCTs, and focused on the effect of an MBT or an MBT component. Specifically, 58 studies were qualitatively analyzed and 42 were quantitatively analyzed. The qualitative analysis evidenced a lack of objectivity in the assessment of risk exposure, with many papers providing very little or no detail on participants’ level or domain of risk exposure (whether threats to psychological wellbeing originate with the individual’s biology or cognitions, or the social, built or natural environment). Our quantitative analysis showed that MBTs significantly improved main outcomes relative to the control conditions, with a small-to-moderate effect size. Where it was possible to identify the level of risk exposure, we found that MBTs positively moderated treatment response, with better response among those participants with a higher level of risk. We conclude that future Positive Psychology research will need to better account for risk exposure if the discipline is to improve our understanding of which populations benefit most from interventions that promote mindfulness.

Introduction: Nursing is a profession whereby trained personnel (nurses) provide care for patients. Nurses are considered as the backbone of healthcare, However, during the fulfilment of their duties and responsibilities, nurses are continuously exposed to occupational dangers and risks which affect their health and nursing quality. The objective of this study was to investigate health risk perception and exposure among nurses in healthcare facilities of senatorial areas of Bayelsa state. Methodology: A descriptive cross sectional survey design was adopted to investigate the health risk perception and exposure among 289 nurses in healthcare facility of central senatorial area in bayelsa state. Data was collected using a well-structured questionnaire. with a reliability coefficient of 0.70 and analyzed with the aid of the statistical package for social sciences (SPSS) version 25. Descriptive results were presented in frequencies and percentages using tables and charts. Inferential statistics of binary logistic regression and chi-square test were employed in analyzing the hypotheses at 0.05 alpha level. Result: The study found that the majority of respondents had a high level of health risk perception (57.4%) and exposure (60.4%). There was no statistical significant difference found in health risk perception of the respondents based on years of work experience and educational status. Respondents in the casualty unit had higher health risk perception [OR:4.606 (95% CI= 1.487-14.265)]. Those with 6-10 years of work experience had higher health risk exposure [OR:0.012 (95% CI= 0.002-0.065)]. Respondents with B.ScN were also had higher health risk exposure [OR:1.597 (95% CI= 0.823-3.101)]. Respondents in theatre and casualty units had high health risk exposure. The result revealed that respondents in the theatre (P<0.01) and casualty (P<0.05) units did significantly exhibited high level of health risk exposure. The odds ratio revealed that respondents in theatre are 0.123 times had high health risk exposure while respondents in the casualty unit are 0.050 times exhibited high level of health risk exposure. Conclusion: The study concluded that nurses are aware of the health risks they can be exposed to in the course of carrying out their duties, hence the need to encourage them to ensure adherence to safety and protection measures to reduce health risks exposures. The study recommended that hospital management of various health care institutions should provide adequate and complete PPE, to encourage safety practices and reduce occupational health risks.

Erratum: Global, regional, and national comparative risk assessment of 84 behavioural, environmental and occupational, and metabolic risks or clusters of risks for 195 countries and territories, 1990–2017: a systematic analysis for the Global Burden of Disease Study 2017 (The Lancet (2018) 392(10159) (1923–1994), (S0140673618322256), (10.1016/S0140-6736(18)32225-6))

Cultural evolutionary theory has identified a range of cognitive biases that guide human social learning. Naturalistic and experimental studies indicate transmission biases favoring negative and positive information. To address these conflicting findings, the present study takes a socially situated view of information transmission, which predicts that bias expression will depend on the social context. We report a large-scale experiment (N = 425) that manipulated the social context and examined its effect on the transmission of the positive and negative information contained in a narrative text. In each social context, information was progressively lost as it was transmitted from person to person, but negative information survived better than positive information, supporting a negative transmission bias. Importantly, the negative transmission bias was moderated by the social context: Higher social connectivity weakened the bias to transmit negative information, supporting a socially situated account of information transmission. Our findings indicate that our evolved cognitive preferences can be moderated by our social goals.

Negativity bias, positivity bias, and valence asymmetries: Explaining the differential processing of positive and negative information

Objectives To identify the risk exposure level of nursing tasks and explore the association with ergonomic factors such as biomechanical, organisational, psychosocial, and environmental job factors. Also, the association among the risk exposure level of nursing tasks among nurses with the prevalence of work-related musculoskeletal disorders (WMSDs), activity limitation, and physician visits for the past 12 months were analysed. Methods In phase one, 68 registered nurses (median age: 33.5 years, females: 89.70%, males: 10.20%) completed the standardised Nordic musculoskeletal questionnaire (NMQ) and ErgoEnf questionnaire on ergonomic risk factors. In phase two, 25 participants were observed at inpatient care using the workplace ergonomic risk assessment tool (WERA) to profile the risk exposure levels during nursing tasks. Results In the patient repositioning task, 24% of the nurses scored low, 76% scored medium-risk exposure level, and none of the nurses obtained a high-risk exposure level. Biomechanical, environmental, and organisational factors were significantly associated with risk exposure levels (p < .05), while no association was found with the psychosocial factors. Conclusions This study showed a significant association between nursing task-specific risk-exposure scores, ergonomic risk factors and the prevalence of WMDs. The risk exposure scores were significantly associated with the reported WMSDs of the lower back, neck, and hip/thigh regions; these prevented normal activities at least once in the last 12 months. Possible interventions are discussed in the realms of human factors framework.

Board attributes, hedging activities and exchange rate risk: Multi-country firm-level evidence

Evaluative conditioning (EC) is the change of a conditioned stimulus's evaluation due to its pairing with an unconditioned stimulus (US). While learning typically shows negativity biases, we found no such biases in a reanalysis of meta-analytic EC data. We provide and test a cognitive-ecological answer for this lack of negativity bias. We assume that negativity effects follow from ecological differences in evaluative information's distributions (i.e., differential frequency). Accordingly, no negativity bias emerges because positive and negative information is equally frequent in most EC experiments. However, if negative (or positive) information is rare, we predict a negativity (positivity) bias. We tested this prediction in five preregistered experiments (three laboratory-based, N = 394, two online, N = 391). As predicted, if negative USs were rare, a negativity bias followed. However, if positive USs were rare, we also observed positivity biases in participants' conditioned stimulus evaluations. These data support a cognitive-ecological explanation of valence asymmetries and partially explain why EC experiments show no negativity bias: Typical EC designs do not reflect the ecological information structure that contributes to a negativity bias in the first place. (PsycInfo Database Record (c) 2024 APA, all rights reserved).

When communicating their CSR (Corporate Social Responsibility) activities many companies predominantly release positive information. However, relying solely on positive information holds potential risks. Brands are consequently confronted with the dilemma of whether to exclusively disclose positive details about their environmental CSR activities (i.e., one-sided messages) or opt for voluntary disclosure of positive and negative information (i.e., two-sided messages). Existing literature distinguishes moderately and highly relevant types of negative information. However, prior research has predominantly overlooked the investigation of highly relevant negative CSR information. Therefore, our primary objective is to explore the impact of two-sided messages encompassing highly relevant negative CSR information in comparison to one-sided messages. We conducted four online experiments in two countries with different brands (study 1 (Germany, Mercedes-Benz, n = 457); study 2 (Germany, Porsche, n = 431); study 3 (USA, Mercedes-Benz, n = 468) and study 4 (USA, Tesla, n = 465)). The results reveal that two-sided messages with the disclosure of highly relevant negative CSR information lead to negative effects in comparison to one-sided messages with only positive information. Consequently, brands should exercise caution in communicating highly relevant negative CSR aspects. Our findings offer notable theoretical insights and practical implications.

This paper examines the impact of investor status (current and prospective) on investors' evaluation of information varying in valence (positive and negative) and in presentation mode (simultaneous and sequential). MBA graduates, proxying for investors, rated the relevance of positive and negative company information and the attractiveness of the company as an investment. Results indicate that (1) current (but not prospective) investors' relevance and attractiveness ratings are more favorable when negative information is presented sequentially (compared to simultaneously) with other negative information; (2) investors' investment attractiveness ratings are more favorable when negative and positive information are simultaneously (compared to sequentially) presented; and (3) investors' relevance and investment attractiveness ratings are more favorable when positive information is presented sequentially (compared to simultaneously) with other positive information. These findings are generally consistent with the psychological phenomena of multiple loss aversion, loss buffering, and gain savoring, respectively.

The Impact of Investors' Status and Information Presentation on Investors' Judgments*

The present study examined whether people with high trait anxiety volitionally access proportionately more negative (than positive) information when interrogating available information concerning an approaching potential stressor during a period of expectancy updating. The present study also examined the role this negative interrogation bias plays in shaping trait anxiety-linked negative expectancy bias and elevated negative state affect. Participants low and high in trait anxiety (N=311) were informed at the outset of the testing session that they may later view a potentially stressful film. Participants then completed a procedure designed to induce initial expectancies concerning the film viewing stressor. Subsequently, participants were provided the opportunity to update their initial expectancies by interrogating negative and positive information concerning the film viewing stressor. The proportion of negative information selected by each participant was taken as a measure of their negative interrogation bias. Measures of expectancies and state affect were taken before and after the induction of initial expectancies, and before and after the subsequent expectancy updating period. The results indicated that, during the expectancy updating period, participants high in trait anxiety displayed greater negative interrogation bias than participants low in trait anxiety. The results also revealed an indirect association between trait anxiety and elevation of negative state affect concurrent to expectancy updating period, which was serially mediated by negative interrogation bias during this period, and by concurrent elevation of negative expectancy bias. Findings are discussed with regards to potential implications for cognitive behavioural interventions for anxiety which seek to drive therapeutic change through the modification of expectancies.

Inefficiency in Earnings Forecasts: Experimental Evidence of Reactions to Positive vs. Negative Information