Risk Propensity Research Articles

From propensity to action: exploring gender and cognitive influences on Informal Investment Intentions

This study explores the factors influencing Informal Investment Intentions among potential investors, focusing on Risk Propensity and Subjective Norms. It examines the mediating effect of Entrepreneurial Alertness and the moderating role of gender, aiming to understand how these elements shape investment decisions among management students in India. A survey-based cross-sectional research design is followed to evaluate a 340 cross-sectional sample. Global Entrepreneurship Monitor (GEM) database, SEM, and the PROCESS macro have been utilized to understand the synchronization between the variables. CFA, RMSEA, GFI, and TLI tests are employed to check the fitness and validity of the model, and CMB, together with PFA, have been applied for variance testing. The study found that Subjective Norms significantly influence Informal Investment Intentions, mediated by Entrepreneurial Alertness. Gender exuberates the relationship between Risk Propensity and Informal Investment Intentions through Self-Efficacy, with stronger effects observed among male students. Findings offer insights for policymakers and educators to design interventions fostering Informal Investment Intentions by enhancing Entrepreneurial Alertness and addressing gender-specific differences, particularly among management students. This study adds to the literature by examining gender's moderating role in the relationship between Risk Propensity and Informal Investment Intentions, providing a nuanced understanding of informal investment behavior in an Indian context.

RISK-BEHAVIOR OF GERMAN BASKETBALL COACHES: COMPARING THE WILLINGNESS TO TAKE RISKS ON DIFFERENT COACHING LICENSE LEVELS WITH THE GENERAL POPULATION AND DIFFERENT PROFESSIONAL SUBGROUPS

This research examines the risk behavior of German basketball coaches to understand how risk propensity varies across coaching license levels. Addressing gaps in previous studies on coaches’ psychological traits, the study compares basketball coaches with teachers, managers, and the general population. Data from 360 coaches and the German Socio-Economic Panel (SOEP) were analyzed. Results show that A-license coaches exhibit higher risk-taking, similar to managers, while C-license coaches align more with teachers and the general population. These findings reveal a link between risk preferences and coaching license level, emphasizing the value of large-scale surveys in exploring professional personality traits and the need for further research across sports.

Sexting: A Digital Gateway to Understanding Risk Propensity and Alexithymic Traits

Aim: The current study explores the patterns of sexting behaviour among individuals actively using online dating apps, with a focus on whether sexting can predict Alexithymic traits and risk-taking behaviours, while also delving deeper into the relationship between the different variables. Methods: This quantitative study employs convenience sampling to recruit 194 individuals, aged 18-25, who are active users of online dating apps across Chennai. The variables were quantified using standardised measures which include; Sexting Behaviours Scale (SBS), The Risky, Impulsive, & Self-destructive behaviour Questionnaire (RISQ), and Toronto Alexithymia Scale Questionnaire (TAS - 20) . The data obtained were then subject to correlation analyses using SPSS software. Results: The results of the study highlight significant relationships between sexting, alexithymia and risk taking behaviours. Findings show that individuals with high levels of alexithymia are much more likely to partake in sexting and the other array of risk taking behaviours as a form of coping mechanism. These results underscore the role of emotional dysregulation in driving risk - taking tendencies, providing us with valuable insights into the psychological factors influencing the behaviors. Conclusion: The findings of the study delve into the complex relationship between young adults’ risk taking behaviors, alexithymia and sexting behavior, with a focus on the domain of online dating. They contribute to the growing body of literature by emphasizing the psychological and behavioral implications of sexting in the digital age, thereby paving the way for developing targeted interventions to mitigate these risks.

Exploring Shared and Unique Predictors of Positive and Negative Risk-Taking Behaviors Among Chinese Adolescents Through Machine-Learning Approaches: Discovering Gender and Age Variations.

Despite extensive research on the impact of individual and environmental factors on negative risk-taking behaviors, the understanding of these factors' influence on positive risk-taking, and how it compares to negative risk taking, remains limited. This research employed machine-learning techniques to identify shared and unique predictors across individual, family, and peer domains. Participants (N = 1012; 44% girls; Mage = 14.60 years, SD = 1.16 years) were drawn from three public middle schools in a large city in southern China (with 49.2% in grade 7 and 50.8% in grade 11). The findings indicate that positive risk-taking is significantly associated with general risk propensity, self-control, and negative parenting by father, while negative risk-taking is correlated with self-control, deviant peer affiliations, and peer victimization. Paternal negative parenting triggered positive risk-taking in boys, whereas self-control had a greater impact on girls. For negative risk-taking, boys were more affected by peer victimization, while girls were more influenced by deviant peer affiliations. This study further demonstrates that as progress from junior to senior high school, peer influence grows more significant in predicting positive risk taking; deviant peer affiliations exert a persistent pivotal influence, future positive time perspective replaces life satisfaction, and paternal negative parenting becomes increasingly impactful in predicting negative risk taking.

Enhancing Sustainable Decision Making: The Impact of Emotional Valence, Arousal, and Personality on Risk Recognition During Contract Review

The capacity to identify risks during the pre-contract phase is crucial for effective contract management. Among the various factors that can influence this ability, emotions play a significant role in determining the risk recognition capabilities of individuals. This study aims to investigate the complex interplay between emotional states, personality traits, learning styles, and risk recognition during contract review with physiological and psychological responses. Firstly, a theoretical framework that delineates the relationship among the demographic and emotional factors and risk recognition performance during contract review is proposed. Secondly, an experiment is conducted to record the physiological and psychological responses. Finally, a hierarchical regression model is employed. The results indicated that emotional valence and arousal significantly influence risk recognition performance (p < 0.001), while individual factors such as personality traits and risk propensity indirectly affect risk recognition performance through the mediating role of emotions (p < 0.01). The research contributes to the existing literature by elucidating the indirect pathways through which individual characteristics influence risk perception. These insights can inform sustainable risk management strategies, helping organizations and individuals make more informed and effective decisions in contract management.

ТЕОРЕТИЧНІ ПІДХОДИ ДО ПРОБЛЕМИ ВПЛИВУ МЕНТАЛЬНОГО ЗДОРОВ'Я НА СУБ'ЄКТИВНУ БЕЗПЕКУ ОСОБИСТОСТІ

Purpose of the article is to analyze theoretical approaches to the issue of the impact of mental health on the subjective sense of safety. Modern socio-economic transformations in Ukraine have heightened the sense of danger, particularly affecting the most vulnerable element of society – the individual. It is important to note that real safety may not coincide with its subjective perception. Therefore, examining the role of mental health in shaping this sense of security becomes a relevant task. Methods include the analysis of contemporary theoretical works and philosophical concepts that view safety as a category defining the viability and resilience of an individual. The study examines the differences between real and subjective perceptions of safety and the role of mental health in this process. It also investigates factors affecting mental health and its connection to an individual's adaptive capabilities in extreme conditions. Results. The article explores theoretical approaches to the issue of the impact of mental health on the subjective safety of an individual, focusing on the assessment and monitoring of psychological aspects. The study analyzes the development of a system of basic indicators measuring safety levels, which combines both objective and subjective threat assessments. In the evaluation of subjective safety, special attention is given to indicators such as anxiety, fear, risk propensity, feelings of insecurity, trust, and confidence in the future. It is argued that these subjective indicators are crucial for understanding how mental health influences an individual's perception of safety, as they determine the internal response to threats and affect overall resilience and the ability to adapt to stressful situations. The results show that mental health is a key factor in shaping an individual's subjective sense of safety. In situations where life is at risk, the role of mental health is critical in maintaining stability and control. However, in cases where higher needs, such as self-actualization, are threatened, its significance is less pronounced. Conclusions highlight the importance of maintaining mental health to strengthen the subjective sense of safety, particularly in critical and extreme situations. Mental health contributes not only to maintaining inner balance but also to adapting to challenging life conditions, making it a key factor in personal resilience.

Individual Characteristics and Operator Dependence Behaviors in Human-Automation Interaction: An Exploratory Study

Understanding the impact of operator characteristics on human-automation interaction (HAI) is crucial as automation becomes pervasive. Despite extensive HAI research, the association between operator characteristics and their dependence on automation has not been thoroughly examined. This study, therefore, examines how individual characteristics affect operator dependence behaviors when interacting with automation. Through a controlled experiment involving 52 participants in a dual-task scenario, we find that operators’ decision-making style, risk propensity, and agreeableness are associated with their dependence behaviors when using automation. This research illuminates the role of personal characteristics in HAI, facilitating personalized team interactions, trust building, and enhanced performance in automated settings.

Are crypto-investors overconfident? The role of risk propensity and demographics. Evidence from Brazil and Portugal

PurposeThe crypto market is growing quickly, marked by a lack of fundamentals, and the risks are not yet fully comprehended by participants. Our goal is to investigate overconfidence in this market and analyze the role that risk propensity and certain demographics play.Design/methodology/approachWe conducted a survey in Brazil and Portugal, leveraging an online questionnaire disseminated via social media channels to engage a diverse adult population. We collected a total of 826 responses, addressing ethical considerations throughout the process. The data analysis was conducted using SPSS statistical software and logit regression modeling.FindingsOur study reveals that overconfidence is a notable bias that distinguishes individuals who invest in cryptocurrencies from those who do not. Although overconfidence and risk propensity are closely linked, they originate from distinct personal characteristics. Furthermore, our findings indicate that age and market experience positively correlate with overconfidence and negatively correlate with risk propensity. Financial knowledge, interestingly, did not prove to be a significant factor for cryptocurrency investment.Originality/valueOur research augments the existing literature on overconfidence, delving into this phenomenon in a new subdomain, and in doing so, it enriches our comprehension of the unique and still relatively under-researched cryptomarket. Moreover, we illuminate individual factors that sway the decision to invest in cryptocurrencies and should be considered by market participants.Highlights(1)Pioneering work examining the presence of overconfidence bias among crypto-investors, using a robust data set collected from a binational survey.(2)Verifies the relations among overconfidence, risk propensity, and demographics.(3)Examines the influence of age and experience on investment decisions, revealing a positive relationship with overconfidence and a negative correlation with risk propensity.(4)Logistic regression is used to determine the combined effect of overconfidence, risk propensity, and demographics on the decision to invest in cryptocurrencies.

Human-Centered Systems Thinking in Technology-Enhanced Sustainable and Inclusive Architectural Design

Human-centered systems thinking (HCST) can be seen as a promising enabler of effective Industry 5.0. This study primarily examined whether architecture students consider themselves systems thinkers and how this affects their design thinking, digital competency, and engagement in sustainable and inclusive design practices. Next, this study also examined the students’ HCST profiles, their stability, and the roles of digital competency, design thinking, motivation, and risk propensity in human-centered design. Using a person-oriented approach and cluster analysis, a sample of Polish architecture students from three universities (n = 208) was classified based on their self-perceived HCST ability. Three profiles were identified, namely high, average, and low HCST. A multivariate analysis of variance (MANOVA) revealed that the HCST profiles differed significantly in terms of design thinking and digital competencies, while multinomial logistic regression (MLR) analysis revealed that perceived intrinsic motivation predicted that students would be more likely to have a high HCST profile. MLR also revealed an undefined role of risk propensity in the context of HCST in inclusive and sustainable architecture design education. The findings indicate that it is essential to recognize and support students with low HCST throughout their education. It is also suggested to change the focus of architecture study programs to promote students’ systems thinking, and to encourage course designers to create novel and tailored technology-enhanced integrated human-centered design and systems thinking.

Limitations of the investor information confirmation form in capturing investor risk propensity

The financial consumer protection laws in South Korea emphasize the principle of suitability to ensure the well-being of the financial consumer. To adhere to these regulations, financial institutions utilize the behavioral risk assessment (BRA) form to assess investors’ characteristics. This study evaluates the effectiveness of these forms in capturing investor risk propensities, using Economic Risk Attitude (ERA), Instrumental Risk-Taking (IRT), and Stimulating Risk-Taking (SRT) as comparative benchmarks. Unlike previous research focused mainly on financial risk attitudes, this study introduces a multidimensional approach that includes psychological factors like SRT, offering a more comprehensive understanding of investor behavior. Findings reveal that while BRA assessments correlate with ERA and IRT, they fail to capture the excitement-driven aspects of risk propensity represented by SRT, indicating that BRA forms may inadequately reflect investors' risk profiles. This underscores the need for refining BRA forms by integrating psychological risk factors, advocating for a multidimensional framework that enhances consumer protection and enables more tailored investment strategies. The study contributes actionable insights for financial consumer protection and sets the stage for integrating advanced technologies, such as AI, to further refine risk assessments.

Psychological Determinants of Investment Decisions: Analyzing Financial Behavior in Personal Investments

Understanding the psychological factors that influence investor behavior is critical in the dynamic world of financial markets. Financial conduct encompasses the decisions and behaviors individuals exhibit in managing their finances, including investments in various asset classes. Factors such as risk tolerance, cognitive biases, emotional influences, and financial knowledge significantly shape investment outcomes. Gaining long-term financial success requires mastery over these behavioral aspects. This study investigates the influence of three psychological factors—information asymmetry, problem framing, and risk propensity—on the investment decisions of 220 active investors trading on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). A quantitative research approach was employed, utilizing a structured questionnaire to collect data. Statistical analyses, including regression and correlation analysis, were used to assess the relationships between these psychological variables and investment behaviors. The results reveal significant correlations between psychological factors and investment decisions. Information asymmetry, problem framing, and risk propensity were found to strongly influence individual investor choices. These findings shed light on the intricate role that cognitive biases and psychological processes play in shaping financial decision-making. The study's findings offer valuable insights into the psychological drivers behind investment behavior. By highlighting the impact of these factors, the research contributes to both academic understanding and practical applications for financial professionals. The results underscore the importance of enhancing financial literacy and investor education, enabling more informed decision-making and promoting improved financial outcomes.

On the Road Safety: Gender Differences in Risk-Taking Driving Behaviors Among Seniors Aged 65 and Older.

Background/Objectives: Life expectancies have increased in most countries, leading to a higher accident rate among older drivers than their younger counterparts. While numerous studies have analyzed the decline in cognitive abilities and physical limitations as contributing factors, there are other considerations. For instance, younger male drivers tend to take more risks than younger female drivers. However, there is a lack of research and evidence regarding the role of gender in risk-taking among individuals over 65. Given this gap, our current study aims to investigate the relationship between gender and risk propensity in this particular age group. The primary goal was to determine if driving experience affects the gender gap in risk attitude; Methods: We studied risk behavior in both car drivers and pedestrians. Our sample included 200 individuals (101 women), all over 65, with the same weekly driving times. After a brief demographic and anamnestic interview, they completed the Driver Road Risk Perception Scale (DRPS) and the Pedestrian Behavior Appropriateness Perception Scale (PBAS) questionnaires. They also provided information about traffic violations and road crashes; Results: Our research revealed that older male drivers continue to tend to risky behavior, highlighting the need for targeted interventions to improve risk awareness, especially among older men; Conclusions: Our findings suggest that road safety messages should specifically target male drivers as they are less likely to view responsible driving actions, such as observing speed limits, as desirable.

Risk Propensity in Journalists

Risk Propensity in Journalists

Risk Propensity and Acceptance of Gene-edited and Genetically Modified Food among US Consumers: A Comparison between Plants and Animal Products

Abstract Utilizing online survey data of US consumers, this study examines the extent to which consumers' acceptance of genetically modified (GM) and gene-edited (GE) food is driven by their risk attitudes. Our results indicate that individuals with high-risk propensity are more likely to accept both GM and GE food than individuals with low- and medium-risk propensity. Our results also find differences in consumers' attitudes toward plants and animal products in the context of both GM and GE. Intriguingly, these attitudinal differences can be explained by consumers' risk propensities. Specifically, both low- and medium-risk propensity consumers differentiate between plants and animal products; the latter is less acceptable than the former, indicating a tendency to have more concerns about the application of biotechnology to animals than plants. However, individuals with high-risk propensity do not differentiate between GM and GE plants and animal products. Our results suggest that policymakers, the food industry, and researchers need to consider these attitudinal differences while studying consumer attitudes toward GM and GE food. Failing to capture these attitudinal differences in studies focusing on consumer behavior toward GM and GE food may result in either overestimating or underestimating consumer response.

The Role of Consumers' Risk Propensity on Consumer Preference for Domestic VS. Global Brands

The Role of Consumers' Risk Propensity on Consumer Preference for Domestic VS. Global Brands

Visibility in the Italian Art World: How Far Along We Are

Even though the concept of “nationality” when we talk about an internationally acclaimed artists is more and more blurred and has little to do with the importance of the artworks, it is evident how small the Italian art presence in great international art manifestations is, sometimes almost negligible. It is then necessary to understand the causes of this situation, to draw a map of the current state of the contemporary Italian scene and state some resolutions from it. The first 2022 Report “How (well) known is Italian art abroad?” by BBS-Lombard Benefit Corporation, together with Arte Generali has investigated how much Italian contemporary artists are (in)visible in the international art market, laying the groundwork for a much more in-depth research of the art system, with the ultimate purpose of giving new solutions to overcome this situation, wandering whether Italian art has a business model with (still) some gray areas - unlike almost all other product sectors – and how building an economy to bridge the gap, having a market strategy and being attractive in the international positioning can be a strategic move. The study was conducted carrying out both qualitative and quantitative analysis throughout more than 20 interviews to Italian curators internationally known that have helped us understand causes, strengths and weaknesses of the Italian art system and a big data collection about the presence of Italian artist in international museums, art manifestations, biennials, such as Biennale di Venezia and documenta, international art galleries and auctions. The global media coverage of Italian artists was analyzed with the help of Artiker and through the artificial intelligence of Wondeur AI, partner of Arte Generali, it was possible to analyze the relationship between art development and cities, considering the city’s overall success rate (percentages of artists showing growth in the city) and the city’s risk propensity (ability to attract artists). The instrument of the Italian Council was also studied, the main MIC project (Italian Ministry for Culture) in support of Italian art and the initiatives of Italian cultural institutes abroad. From the overall analysis some relevant names have emerged: Francesco Vezzoli, Monica Bonvicini, Enrico David, Paola Pivi, Tatiana Trouvè, Roberto Cuoghi, Rosa Barba, Massimiliano Cattelan (above all) and a few others, all united by a time of study or work abroad which allowed them to create valuable relationships with curators, galleries and museums abroad.

Risk is in the eye of the investor: Cryptocurrency investors’ engagement with risk, regulatory advice, and regulatory institutions

Despite regulators’ warnings that investing in cryptoassets is highly risky, cryptocurrency investments are prevalent. To explore investors’ engagement with regulatory risk advice, we conducted two surveys. Cryptocurrency investors residing in the UK and the US were asked about their interpretation of the notion of risk, awareness of regulatory risk advice, and attitudes towards the advice and the regulators. Investors were also asked whether they followed the advice. Qualitative content analysis of their answers suggests that people often invest in cryptocurrencies although they understand the risks involved and are aware of the regulators’ advice. They do so due to their risk propensity, self-reliance, criticism of the informativeness of the advice, or attitudes towards regulators. Furthermore, negative attitudes towards regulators often stem from lack of trust and the perception that regulators are dated. This study suggests that regulators could benefit investors by providing them with more informative advice and addressing their attitudes.

Effects of Neuroticism–Anxiety and Sociability Personality Traits on the Relationship Between Testosterone and Risk Propensity in Finance

Risky financial decisions, defined as rational calculations between expected risk and reward, are subject to various psychological and neurobiological mechanisms. In this context, the relationship between testosterone levels and risk propensity has been investigated, but the results are inconsistent. Here, the effects of some personality traits, neuroticism–anxiety and sociability, on the relationship between testosterone levels and risk propensity were examined in decisions under risk (GDT) and under uncertainty (BART). In a mixed-sex sample of 100 graduate students and experienced decision makers, we found that basal testosterone levels were positively correlated with risk propensity for decisions under risk in males with low neuroticism–anxiety scores, whereas they were negatively correlated with risk propensity for decisions under risk in males with high neuroticism–anxiety scores. However, they were not correlated in i) decisions under uncertainty in males, independent of neuroticism–anxiety, ii) decisions under risk or under uncertainty in males, independent of sociability, and iii) decisions under risk or under uncertainty in females, independent of sociability and neuroticism–anxiety. These results indicate that neuroticism–anxiety, but not sociability, may affect the relationship between testosterone levels and risk propensity only in decisions under risk and only in males, and provide evidence for the complexity of this relationship in males.

Valence-dependent dopaminergic modulation during reversal learning in Parkinson’s disease: A neurocomputational approach

Reinforcement learning, crucial for behavior in dynamic environments, is driven by rewards and punishments, modulated by dopamine (DA) changes. This study explores the dopaminergic system’s influence on learning, particularly in Parkinson’s disease (PD), where medication leads to impaired adaptability. Highlighting the role of tonic DA in signaling the valence of actions, this research investigates how DA affects response vigor and decision-making in PD. DA not only influences reward and punishment learning but also indicates the cognitive effort level and risk propensity in actions, which are essential for understanding and managing PD symptoms.In this work, we adapt our existing neurocomputational model of basal ganglia (BG) to simulate two reversal learning tasks proposed by Cools et al. We first optimized a Hebb rule for both probabilistic and deterministic reversal learning, conducted a sensitivity analysis (SA) on parameters related to DA effect, and compared performances between three groups: PD-ON, PD-OFF, and control subjects.In our deterministic task simulation, we explored switch error rates after unexpected task switches and found a U-shaped relationship between tonic DA levels and switch error frequency. Through SA, we classify these three groups. Then, assuming that the valence of the stimulus affects the tonic levels of DA, we were able to reproduce the results by Cools et al.As for the probabilistic task simulation, our results are in line with clinical data, showing similar trends with PD-ON, characterized by higher tonic DA levels that are correlated with increased difficulty in both acquisition and reversal tasks.Our study proposes a new hypothesis: valence, signaled by tonic DA levels, influences learning in PD, confirming the uncorrelation between phasic and tonic DA changes. This hypothesis challenges existing paradigms and opens new avenues for understanding cognitive processes in PD, particularly in reversal learning tasks.

The relationship between entrepreneurial personality patterns linked to risk, innovation and gender across industrial sectors

This study examines the personality patterns of solo founders in both high-tech and non-high-tech sectors during the first seven years of their entrepreneurial journey to emphasize the patterns’ implications during policymaking, investment decisions, and self-assessments. IAB/ZEW startup panel microdata for the sector classification of 4470 solo entrepreneurs in Germany were analyzed to identify Big Five trait patterns influenced by risk propensities, innovation inclination, and gender. The entrepreneurial profiles indicate positive openness, emotional resilience, and sector-specific clusters. Conscientiousness suggests flexibility, and while variations in extraversion and agreeableness exist, negative neuroticism was predominantly found, except for gender-related differences and multidimensional service innovators. Big Five traits provide information about important foundational profile patterns to describe unique solo entrepreneur types influenced by risk, innovation, and gender. Originality and value: Risk propensity characterizes ‘Adaptive Services,’ ‘Dynamic Knowledge Innovators,’ and ‘Strategic Risk Navigators.’ Additionally, ‘Multidimensional Service Innovators’ and ‘Focused Tech Innovators’ signify innovation understanding. The Big Five profiles show openness and emotional stability across sectors, providing crucial insights for effective entrepreneurial support and investment strategies.