Risk Attitudes Research Articles

Prevalence of Disordered Eating Risk Attitudes in Youth Elite Male and Female Football Players.

Objectives: Examine the prevalence of risk behaviors for the development of eating disorders in academy footballers of the Liga MX, compare sociodemographic data and highlight the participants' perceptions regarding the influence of the sports environment and external pressure on their relationship with food and their bodies. Methods: A cross-sectional study was carried out with 536 footballers (331 men and 205 women) in the categories U14, U16, U18 men and U15, U19 women of Liga MX with prior consent from their clubs and strict confidentiality measures. The data were collected via Google Forms using the Eating Attitudes Test (EAT-26). Results: Of the participants, 13.4% met or exceeded the cut-off point on the EAT-26. The highest prevalence was observed in the Female U19 category. The reflections indicated that the sports environment and external pressure affect the relationship with food and bodies in a significant proportion of participants. Conclusions: The study highlights a high prevalence of risk behaviors for eating disorders in Liga MX football players, with a higher incidence in the female categories, also evidencing a multifactorial etiology.

Entrepreneurs’ impatience and digital technologies

AbstractThis paper analyzes the impact of entrepreneurs’ preferences (impatience and risk attitudes) on firms’ propensity to invest in both general and digital technologies. Using data from the Rilevazione su Imprese e Lavoro (RIL) survey, conducted on a representative sample of Italian firms, we find that impatience significantly reduces the likelihood of adopting digital investments, even when controlling for risk preferences. To address potential endogeneity and simultaneity concerns, we implement an instrumental variable (IV) strategy, exploiting exogenous variation from exposure to earthquakes. The findings remain robust and highlight the crucial role of impatience in shaping investment decisions, particularly in digital technologies.

Socio-Economic Characteristics of Producers and Economic Size Classes of Enterprises According To Typologies and Risk Attitudes in TR21 Region

The aim of this study was to determine the typologies of agricultural enterprises operating in the TR21 Region according to the Farm Accounting Data Network methodology and the risk attitudes of the producers. According to the typologies and risk attitudes of the enterprises, the socio-economic characteristics of the producers and the economic size classes of the enterprises were determined. As a result of sampling based on a 95% confidence interval and a 10% margin of error, the number of enterprises surveyed was determined as 334. While 63.77% of the enterprises were specialized in field crops, 25.45% engaged in mixed livestock and plant production. Additionally, 7.49% were specialized in pasture livestock and 3.29% were in the perennial plant farming group. In the enterprises examined, 55.09% of the producers were classified as risk-averse and 44.91% as risk-lover. Of the average land holdings, 71.25% was property and 28.75% was rented land. It was noteworthy that the land rental rate in risk-lover enterprises was higher than in risk-averse enterprises. It was concluded that risk-lover enterprises had higher production value in both plant production and animal production, and risk-averse enterprises were engaged with product and animal diversity as they avoided taking risks. On average, in risk-lover enterprises, 53.64% of the operating expenses were vegetative special expenses and 46.36% were animal special expenses. In risk-averse enterprises, the share of vegetative special expenses in total expenses was 47.15%, and the share of animal special expenses was 52.85%. Compared to the average of enterprises and all enterprise typologies, standard gross profit was found to be higher in risk-lover enterprises. In enterprise typology groups, the average ESU values of the enterprises varied between 10.88 and 33.80 ESU. According to enterprise typologies, risk-averse agricultural enterprises in specialized field crop farming and perennial plant farming were in the below-medium enterprise class, while other enterprise groups were in the above-medium enterprise class.

Financial Risk Attitude, Environmental Dynamism and Financial Sustainability of Small and Medium Enterprises in Nairobi, Kenya

Financial Risk Attitude, Environmental Dynamism and Financial Sustainability of Small and Medium Enterprises in Nairobi, Kenya

Do retail investors gamble more during lockdown?

AbstractRetail investors are known to favor stocks with lottery‐like features and trade too much. Less is known about their intertemporal demand and risk‐taking behavior in lottery‐type stocks. We use intraday transaction data between September 2019 and June 2020 from the Stock Exchange of Thailand to test how individual's risk attitude changes with respect to decline in their wealth prospects during the COVID‐19 lockdown. The behavior of the investors supports a reference dependent preference. Confronted with lowered wealth prospects, retail investors substantially reduce their underweighting in nonlottery stocks while increasing overweighting and turnover frequency in lottery stocks resulting in deteriorating portfolio performance.

Penalties imposed on board chairs and corporate innovation: evidence from China

ABSTRACT While previous literature has explored the role of board chairs in firm performance, little is known about how penalties imposed on board chairs shape firms’ strategic decisions and their risk attitude. This study investigates the impact of penalties imposed on board chairs on corporate innovation. Drawing upon the reputation repair and resource dependence perspectives, we present two competing hypotheses that provide distinct insights into how penalties imposed on board chairs influence corporate innovation. Employing a comprehensive dataset of Chinese listed firms, we find that penalties imposed on board chairs lead to a decline in corporate innovation, supporting the resource dependence hypothesis. Further analysis find that this effect is more pronounced in firms with low redundant resources, high media attention, high industry competition, and those are non-state-owned. Our findings contribute to the growing body of the literature on board chairs, innovation and regulatory penalties by exploring the impact of penalties against board chairs on corporate innovation.

Digital economy, risk attitudes, and entrepreneurial decision-making in urban and rural households in China

Using data from the 2019 China Household Finance Survey, this study examines how the digital economy and household risk attitudes affect entrepreneurial decision-making in urban and rural Chinese households. Risk-taking families are more likely to become entrepreneurs, particularly in economically developed eastern regions. Furthermore, integrating the digital economy boosts entrepreneurial activities within households, especially in the central and western regions. Based on these findings, the government and relevant institutions should strengthen digital infrastructure in the central and western regions, as well as establish an evaluation and monitoring mechanism to ensure the effectiveness of policy measures to promote balanced economic development and sustainable growth in household entrepreneurial activity.

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.

Risk Attitudes and Sources of Finance: Evidence from Non-Farm Household Enterprises in Ghana

ABSTRACT Several theories in economics and finance suggest that risk attitudes play a vital role in economic choices, including being an entrepreneur and the choice of finance for businesses. However, there are limited empirical tests of these theories in the African context, where majority of firms are small and medium-scale enterprises. Using the 7th round of the Ghana Living Standards Survey (GLSS 7), this study estimates the effect of risk attitudes on the decision to own a household enterprise and the choice of finance by owners of household enterprises. The study finds no significant impact of risk aversion on household enterprise ownership. We find risk aversion to significantly influence the use of self-financing as start-up capital; however, after controlling for access to finance, this effect reduces. We also did not find a significant relationship between risk aversion and the use of loan financing as working capital. The findings from this study shed light on the risk management strategy of household enterprise owners and suggest that access to finance is an important determinant of sources of financing. Hence, to spur growth of these critical household enterprises, the essential role of access to finance should be addressed by policymakers.

Minimum adjustment cost consensus model with bounded risk preference attitudes: A perspective based on fractional stochastic dominance

Linguistic multi-attribute group decision making with linguistic distribution assessment (LMAGDM-LDA) problems have been widely investigated. However, in the existing studies, the risk attitudes of decision maker are seldom considered. Inspired by this, in this paper, we employ the idea of fractional stochastic dominance to develop a consensus reaching framework for LMAGDM-LDA with bounded risk preference attitudes. Then, we design an interactive learning algorithm for obtaining the bounded risk preference threshold. Next, we analyze the deception behaviors and average behaviors of experts, and develop the minimum adjustment cost consensus model with bounded risk preference attitude (MACC-BRP). And we justify the connection between the MACC-BRP and the minimum adjustment cost consensus model with other risk attitudes. Furthermore, we provide a distance-based method to obtain the rankings of alternatives. Furthermore, a numerical analysis is provided to show the computation process of the proposed method, and a comparison analysis and a simulation analysis are further conducted to show the advantages and features of the proposal. The simulation results show the effects of the risk preference threshold, the intrinsic individual weight and the average threshold. The comparison results show that the proposed minimum adjustment cost consensus models have clear advantages.

Third party interventions promote cooperation on the interdependent networks: A perspective based on prospect theory.

Third-party intervention is a beneficial means to alleviate conflicts and promote cooperation among disputants. The decision-making of disputants is closely related to the intensity of the impact of third-party intervention on their profits. Actually, disputants often decide whether to adopt cooperative strategies based on their own perceived rather than actual gains or losses brought about by third-party intervention. We, therefore, introduce prospect theory to explore the formation and maintenance of cooperation in a system composed of third parties and disputants, which, respectively, constitute two sub-networks of the interdependent networks. Both interveners and disputants participate in a prisoner's dilemma game, and the third-party intervener will pay a certain price to impose certain punishments on the defectors of the disputed layer. The simulation results show that the introduction of third-party intervention based on the prospect theory alleviates the conflicts in the dispute layer and promotes cooperation among disputants, which indicates that third parties such as governments or organizations should appropriately consider the risk attitudes of disputants when mediating their conflicts. The level of cooperation at the dispute layer is inversely proportional to the intervention cost and directly proportional to the intervention intensity. Our research may shed some new light on the study of the evolution of cooperation under third-party intervention.

Does household risk attitude affect consumption expenditure? Evidence from Chinese urban households

Does household risk attitude affect consumption expenditure? Evidence from Chinese urban households

CEO early-life experience and corporate accounting conservatism: Insights from the socio-political context

Using China's Cultural Revolution as a shock to risk attitude, this study investigates the effect of CEOs' early-life experience on corporate accounting conservatism. We find that CEOs who experienced the Cultural Revolution in their early life are more risk-averse and conservative, and thereby are associated with a higher level of accounting conservatism. Such a positive relationship is more pronounced in provinces with higher political risks, e.g., where the provincial leadership changes and where high-profile provincial bureaucratic corruption cases occur. Also, the positive effect of CEOs' early-life experience is stronger in SOEs where CEOs' political career concerns are more pronounced. Additional analysis suggests that CEOs with early-life Cultural Revolution experience are more likely to adopt conservative accounting practice, such as increasing firm's provisions for liabilities and reducing accrual-based earnings management. Our results add new evidence to support the upper echelons theory and imprinting theory by highlighting the enduring impact of influential socio-political events during early life on the decision-making processes of CEOs.

Discovering the critical factors of affecting non-fungible tokens (NFT) purchase intention

This research is to explore the critical factors that affect the NFT trade and investigate the associated relationships of trust, security, privacy, attitudes, and purchase intentions. An empirical survey was conducted and then analyzed using partial least squares structural equation modeling (PLS-SEM) to examine the proposed research model. The results showed that risk perception, trust, and attitude have significant positive correlations with participants' intentions to purchase NFTs; in particular, trust and attitude play critical mediating roles in a proposed conceptual framework. The study's findings can offer valuable insights for decision making processes of stakeholders in the NFT market.

What is the relationship between risk attitudes and ambient temperature? Evidence from a large population-based cohort study

Rising temperatures affect human behavior and risk-taking in several domains. However, it is not yet well understood just how ambient temperature shapes risk attitudes. Using data from the large population-based KORA-Fit study (Cooperative Health Research in the Region of Augsburg) of older people (N=2454), we identify a statistically significant, but very small, positive association between short-term ambient temperature changes and individuals’ general willingness to take risks. Health-related risk attitudes, however, show no significant relationship with temperature. These findings support a domain-specific view of risk attitudes, with results remaining consistent for vulnerable individuals with the chronic conditions diabetes, hypertension, and asthma. Overall, our findings suggest that risk attitudes are somewhat stable towards changes in ambient temperature.

The Role of Public Information in Capital Markets with Investors of Unknown Risk Attitudes

We consider a single-period, pure-exchange setting where investors have mean-variance preferences. Investors are uncertain about the risk attitudes of other capital market participants and, thus, about the market's risk premium. Assuming that there are no strategic interactions among investors, we identify conditions under which investors choose to abstain from trading in the capital market due to the risk associated with an uncertain risk premium. In addition, we find that investors may prefer the disclosure of public information prior to trading, as this information reduces the risk premium and thus relaxes the condition for market participation. Therefore, the presence of investors with unknown risk attitudes suggests a beneficial role for public (accounting) information.

Risk Perception versus Risk Preference among Future Financial Market Participants – A Pilot Study

The purpose of the article. The purpose of this pilot study was to assess the level of risk measured by the SIRI risk questionnaire and the psychological test from the section ‘People Value Changes, not States’ from the article ‘Aspects of Investor Psychology' by Kahneman and Riepe. Another objective was to evaluate the relationship between the level derived from the tests and the risk attitude of market participants. Methodology. The pilot study was conducted between February and June 2023. A quantitative method was used to verify the hypothesis. A survey tool was used and 36 students of Finance and Accounting major were surveyed. The survey consisted of the SIRI risk questionnaire, the Kahneman and Riepe psychological test, and a metric, which included questions on the socio-demographic characteristics of the sample such as gender, and a year of study. Results of the research. The pilot study found a negative moderate correlation between stimulus risk and instrumental risk, and a negative moderate correlation between instrumental risk, risk aversion and gambling propensity.

The role of gene–environment interaction in the formation of risk attitudes

Understanding the formation of risk preferences is crucial for elucidating the roots of economic, social, and health inequalities. However, this area remains inadequately explored. This study employs a risk preference measure directly linked to the labor market to examine whether previous experiences with high unemployment rates influence current risk decision-making among the elderly, and whether this impact varies by genotype. The findings indicate that individuals with low genetic predispositions for risk tolerance are more significantly influenced by historical fluctuations in unemployment rates than those with high genetic predispositions for risk tolerance. Consequently, this paper identifies genetic endowment as a crucial moderating factor that shapes how past experiences impact current decision-making processes. This disparity in how past experiences shape risk preferences based on genetic predisposition may further amplify inequalities in health, wealth, income, and other outcomes associated with risk preferences.

Integrated risk management and maintenance planning in Oil and Gas Supply Chain operations under market uncertainty

The Oil and Gas Supply Chain (OGSC) is a multifaceted network comprising diverse activities and echelons. Instability or interruptions can cause economic fluctuations, impacting industries, markets, and consumers. Maintenance activities, which pause production but extend facilities' life, are recommended during non-peak demand periods to avoid production losses and meet customer demand. To mitigate these effects, decisions on operations planning, maintenance scheduling, and maintenance team assignments should be optimized in a risk management framework. The proposed model adopts a mixed-integer linear programming (MILP) framework and is solved via a sequential approach that incorporates the relax-and-fix (RF) heuristic in order to find a solution that is close to optimal. Subsequently, the solution serves as an initial solution for the CPLEX solver, which employs a branch-and-cut algorithm to attain the exact optimal solution. The practicality of this model has been showcased through its application to the supply chain in Saudi Arabia. The model efficiently schedules maintenance activities evenly and consistently across the OGSC plants over the planning period to reduce lost sales by keeping plants operational during high-demand periods. Furthermore, a sensitivity analysis was conducted to investigate the influence of the decision-maker's risk attitude on the outcomes that were obtained.

Post-ACA health insurance decisions: A survey on risk attitudes and consumer confidence

Objective: This study investigates the reluctance of individuals in the United States to get health insurance, specifically examining the psychological and sociodemographic aspects that contribute to this reluctance within the Affordable Care Act (ACA) framework. The research objective is to ascertain the behavioral factors contributing to insurance hesitation and offer valuable perspectives for decreasing the number of individuals without health insurance and enhancing health security. Methodology: The study uses data from the 2022 Survey of Consumer Finances to analyze the impact of specific variables such as risk tolerance, consumer confidence, income, education, age, and marital status on health insurance coverage choices. We also address issues related to cost, perceived health requirements, previous experiences, and misunderstandings about eligibility. Conclusion: The study demonstrates that higher customer confidence, frequently associated with financial stability, decreases reluctance to obtain insurance. By contrast, individuals with more risk tolerance exhibit more hesitancy, opting to depend on internal resilience. Furthermore, substantial demographic disparities indicate the presence of several obstacles in acquiring comprehensive coverage. Implications and Recommendations: The results underscore the necessity of tailored policy interventions that address the unique requirements of different demographic groups. It is crucial to consider both psychological and sociodemographic aspects to promote insurance adoption and ensure universal health security. The present study makes a valuable contribution to the current body of literature by offering a comprehensive examination of health insurance hesitation following the Affordable Care Act (ACA) implementation.