Abstract
This study explores the relationship between the Hofstede's cultural values of indulgence-restraint, long-term-short-term orientation, and risk aversion in 53 developed and developing countries. The author used linear multiple regression analysis, controlled for the countries' per capita income, and religiosity secondary data from multiple sources to test the two hypotheses.
Highlights
It is worthwhile for researchers to examine many factors that could influence risk preference at the individual, firm and country level
Through the regression analysis results, the author tries to explain the differences across countries that tend to be risk-averse
The multiple linear regression results of examining 53 developed and developing countries suggest many conclusions about risk-aversion among countries: 1. All countries' national culture matters when it comes to the level of riskaversion at the country level
Summary
Cultural values cause considerable differences in risk-averse and risk-taking in societies (Rieger, Wang, and Hens, 2011).Risk aversion is critical in multinational business, behavioral economics, entrepreneurship, life insurance, financial institutions, banking, consumer behavior and unemployment (Gandelman and Hernández-Murillo, 2015). Risk aversion is critical in multinational business, behavioral economics, entrepreneurship, life insurance, financial institutions, banking, consumer behavior and unemployment It is worthwhile for researchers to examine many factors that could influence risk preference at the individual, firm and country level. Managers and other policymakers make decisions in several areas that affect businesses in organizations and economies in countries. These decisions might be influenced in one way or another by business and policy decision-makers level of risk preference. The micro-level decisions made by policymakers, business managers and executives could influence a country’s development outcome and economic growth (Gandelman and Hernández-Murillo, 2015)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
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 callDisclaimer: 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.
