Risk-taking Attitudes Research Articles

A Comparison of Financial Risk-Tolerance Assessment Methods in Predicting Subsequent Risk Tolerance and Future Portfolio Choices

This study explores the effectiveness of various methods for measuring risk tolerance, with the aim to better understand the risk-taking attitudes and behaviors of financial decision-makers. Using data collected between October 2020 and March 2021, the research investigates three key areas: (a) the stability of risk tolerance over a six-month period, (b) the individual and household characteristics that predict future risk tolerance, and (c) the predictive accuracy of various risk-tolerance assessment methods in relation to portfolio choices made by financial decision-makers. The results show that risk-tolerance scores derived from a psychometrically developed scale provide the most accurate insights into future risk-taking attitudes and portfolio decisions. For those looking for a simple way to assess both current and future risk tolerance and portfolio choices, a stated-preference item can be effective. Although less consistent, a revealed-preference test can also be used to predict risk tolerance and risk-taking behavior. Findings provide guidance for financial decision-makers and financial advisors by comparing the key features of the three primary risk-tolerance assessment methods evaluated in this study. The study also establishes a foundational basis for selecting the most appropriate evaluation approach, based on the variables identified in the findings.

Impact of attitude, behaviour and opinion of e-scooter and e-bike riders on collision risk in Singapore

Active Mobility Devices (AMDs) such as electric scooters (e-scooters) and electric bikes (e-bikes) are increasingly used on shared paths and Park Connector Networks (PCNs) in Singapore, leading to frequent interactions between AMD riders, pedestrians, and cyclists. To ensure safety, it is crucial to understand the factors associated with collision risk related to these AMDs. To gain insights into the riders’ perspectives on the risk-taking behaviours and attitudes towards safety and sharing paths, a survey was conducted with 369 e-bike and 133 e-scooter riders across Singapore. The collected data was analysed to identify critical features of behaviour, attitudes, and opinions of e-scooters/e-bikes riders and their impact on perceived collision risk. Logistic Regression was used to select the most important behavioural features linked to collision risk, and significance of each was quantified by using the odds ratios in the chosen model. The results reveal that e-bike riders who regularly brake hard to avoid obstacles and highly value capacity of e-bike to carry goods face an increase in collision risk by 49.1% and 43.48% respectively. Those preferring quieter AMDs face 33.31% lower collision risk. Additionally, e-bike riders advocating for more traffic enforcement or the importance of slowing down when overtaking pedestrians face 20.69% and 38.84% lower collision risk respectively. E-scooter riders who manoeuvre quickly to dodge collisions or prioritize passenger-carrying capacity encounter a 142.25% and 67.43% higher collision risk, respectively. Furthermore, e-scooter riders willing to bend rules when not causing inconvenience to others face an increase in collision risk by 123.00%. These outcomes offer significant insights for the design and regulation of active mobility to safeguard all road users in a multi-modal transport environment.

Education, Risk-attitude and Agricultural Innovation: Farm Level Investigation in North India

This paper explores the role of farmers’ education in promoting farming innovation, that is, contract farming (CF). Applying the Tobit model on cross-sectional data of 754 wheat growers in Haryana, it has been found that education directly and indirectly (by reducing risk aversion) stimulates the participation intensity of farmers in CF. It directly enhances farmers’ capacity to absorb and comprehend CF complexities and indirectly reduces farmers’ risk-aversion attitude. It fosters a positive attitude and willingness to adopt modern technologies. Hence, both the education and risk-taking attitudes of farmers are found to be significant for CF adoption probability and intensity. Other factors like farm size, non-farm income, asset ownership and access to credit, media and contact with extension services are all positive stimuli of CF participation intensity. The study suggests promoting field school and awareness programmes to help farmers both acquire and disseminate information on modern farm practices and technologies. JEL Codes: C01, I25, Q16

Migration aspirations in relation to border closures, employment opportunities and risk-taking attitudes: lessons from an online survey experiment

ABSTRACT This article investigates the effect of structural and individual factors on migration aspirations in a secondary migration context. Through an online survey experiment conducted with Syrian migrants (N = 551) living in Turkey, we unpack factors explaining aspirations to stay and move onward from the current country of residence. The findings indicate that open borders alone do not compel migrants to move onward. Instead, employment opportunities in their current residence play a crucial role in shaping aspirations to stay put. Moreover, individuals inclined to take risks are more likely to migrate, even when strict border controls are in place. By highlighting the question of what motivates migrants to stay as well as to move onward, this research emphasizes individual differences in forming migration aspirations and contributes to migration aspirations literature in the secondary migration context.

Individual differences in risk attitude among managers: a multilevel approach

Purpose The way in which managers differ when confronted with risky options or when evaluating different alternatives constitutes a fundamental part of organizational risk management. This study aims to investigate how managerial risk-taking attitudes (i.e. ethical and financial risk-taking as a trade-off between benefit and riskiness) change over time and based on gender. Design/methodology/approach The authors conducted a cross-sectional study on a sample of Italian executives and measured their perceptions of risk-taking, risk perception and risk-benefit, all referring to the company they worked for in the ethical and financial domain. The study also collected demographic data to gather information on age and gender. The authors analyzed data collected using multilevel analysis. Findings The results show that perceived benefits are the main drivers of risk-taking attitudes in both domains. Age and gender are not significant direct predictors of risk, but interactions with domains reveal insightful patterns. Originality/value Overall, this study highlights the need to assess the whole pattern of relationships emerging from the range of situational variables characterizing a specific population. Concerning the organizational context, it means addressing the role of organizational variables in influencing risk-taking so as to determine the extent to which organizational policies are indeed effective in fostering efficient organizational risk management.

Shaken to action: Natural disaster experience and enterprises' sustainable decision-making

This paper explores how early-life exposure to natural disasters, specifically earthquakes, induces environmental-friendly actions in China's manufacturing sector. We establish that early-life earthquake experiences lead to a reduction in enterprises' pollutant emissions, an effect that persists for up to a decade and gradually diminishing over time. Delving into the experimental economics and psychology literature, we identify key drivers of environmentally responsible behavior in firms, including long-term time preferences, prosocial behaviors, and risk-taking attitudes. The pollutant reduction effect is more prevalent in firms with stronger performance, those that are nonstate-owned, operate in heavy-polluting industries, and have endured severe earthquakes. Our research expands the understanding of climate risk, post-traumatic growth, and factors influencing corporate pollutant emissions, offering valuable insights into how individuals' preferences can be nurtured to support environmental protection efforts.

Corporate social responsibility: does risk-taking attitude matter?

Purpose The purpose of this paper is to understand the role of risk-taking attitude as an important antecedent to corporate social responsibility (CSR) initiatives. Design/methodology/approach The authors use regression models on a sample of 2,136 publicly traded US companies over a 10-year period. Findings Corporate risk-taking encourages the pursuit of CSR initiatives and internal (i.e. board strength) and external (i.e. financial analysts) corporate governance mechanisms strengthen that relationship. Originality/value While pursuing CSR initiatives involves financial and reputational risks that are evident by the variability in the outcomes (e.g. firm value) of firms that have historically undertaken CSR initiatives, to the best of the authors’ knowledge, this is the first paper to theoretically explain why risk-taking is an important antecedent to CSR and empirically test that relationship.

Physiology of Risk-Taking and Risk Management in Realistic Decision-Making Scenarios.

Decisions under risk are a particular case of decisional skills taking place in complex and mostly unpredictable situations, where affective connotation of deciding is highly relevant. We aimed at investigating decisional processes under risk by outlining individual risk-taking (RT) and risk management (RM) attitudes via realistic decision-making and, in keeping with the risk-as-feeling hypothesis, at exploring implicit physiological correlates of such processes. 35 participants were presented with realistic situations where they had to make decisions by choosing between alternatives connoted by different levels of riskiness. Concurrently, autonomic physiological activation (cardiovascular and electrodermal activity) was recorded. Data analysis highlighted that: (i) participants showed higher propensity towards risk management than risk-taking; (ii) the propensity towards both risk taking and risk management was significantly determined by physiological markers of autonomic activity; and (iii) risk taking and risk management indices showed associations with different autonomic measures, respectively heart rate and skin conductance metrics.

Efforts to Enhance Service Quality: The Roles of Innovation Capability and Service Recovery

This research aims to discuss the service quality issue at 4-star hotels in Medan. Next, build a model on how to enhance service quality. A sample of 560 guests was taken by random proportional from each hotel. Structural equation models with the lisrel software supported. Market orientation influences innovation capability and service quality. Value co-creation influences innovation capability, service recovery, and service quality. Innovation capability influences service recovery. Innovation capability mediation can increase the influence of market orientation on service recovery. Service recovery affects service quality. Integration between functions in hotels, especially information dissemination in formulating policies to increase innovation capabilities, is important to pay attention to. It is important to develop a risk-taking attitude to improve service recovery. Recovery strategies are important to pay attention to in efforts to improve service quality. The role of market orientation needs to be followed by innovation capability to improve service recovery.

Meningkatkan Jiwa Kewirausahaan Siswa dari Faktor Kompetensi Rasa Ingin Tahu, Berpikir Kreatif, dan Sikap Mengambil Risiko di SMA Lentera Harapan Tangerang [Improving Students' Entrepreneurial Spirit from the Competency Factors of Curiosity, Creative Thinking, and Risk Taking at Lentera Harapan Tangerang High School

<p>The entrepreneurial spirit is now needed. Through the entrepreneurial spirit, the students are expected to become skill and applicable in the daily life. Things that encourage the growth of the entrepreneurial spirit of the students are the curiosity competency, creative thinking and risk-taking attitude. Therefore, this study was conducted to determine whether there is a correlation and influence between the three competences toward the entrepreneurial spirit of the students, and to analyze how significant the influence of them. This study was implemented to 115 students of Lentera Harapan, Tangerang. Collecting data used questionnaire for the competences and entrepreneurial spirit by using SPSS statistical program assistance type 16. To solve the validity types, relationships, and influences is calculated by the formula Pearson and regression, and reliability using Cronbach Alpha. The result of this research showed that there is a correlation and influence between the curiosity competence (0.33), creative thinking (0.19), and risk-taking attitude (0.36) toward the entrepreneurial spirit of students. The three factors are influence toward entrepreneurial spirit as 0.422 and significant to develop the entrepreneurial spirit between the grade X and XI.<em></em></p>

From Railways to Aircraft: Officine Meccaniche Reggiane’s Successful Product Transition in the 1930s

In 1936 Gianni Caproni, one of the biggest aircraft producers in Italy, bought one of the biggest engineering companies in Emilia Romagna, the Officine Meccaniche Reggiane, and started manufacturing and exporting some of the topmost fighters ever produced in Italy. Based on different archival sources this paper would like to shed light on why, despite a national technological obsolescence in the field a company, which focused on the production of railway material, was able to come up with the most technologically innovative fighters (the Re. 2000 and successive models) which soon conquered the Italian and foreign markets. The author would like to indicate the original characteristics which help explain its primacy: the unique features of the Reggiane, the role of the new owner, risk-taker and forward-looking entrepreneur Gianni Caproni and in particular the importance of the transmission of knowledge, which in those autarchic years and in this particular case was reached by attracting human capital from abroad. The general argumentation of the paper would like to show the importance of deeply excavating in the company’s history, managerial choices, risk-taking attitudes, and knowledge transfer in explaining an otherwise almost inexplicable international business success in a such a competitive sector. The approach is not purely descriptive: the paper analyses the facts and figures of the Officine Meccaniche Reggiane before and after the Caproni takeover, it evaluates the company’s innovative production strategy in the new field of aircraft production and offers new interpretations on its success story in this field.

The Role of Peer Pressure, Parental Bonding, and Sensation Seeking in Predicting Risk-taking Attitude among Adolescents in Selangor, Malaysia

The Role of Peer Pressure, Parental Bonding, and Sensation Seeking in Predicting Risk-taking Attitude among Adolescents in Selangor, Malaysia

Peoples’ perspectives on the ‘Future of Europe’ – A comparative study from within and beyond the European Union

Tendencies of European disintegration – culminated in Brexit – have laid bare the lack of a future plan for Europe. Few extant studies contain a future outlook and often lack a public opinion perspective, albeit the latter’s relevance in the ‘constraining dissensus’ between citizens and political elites about European integration. Focusing on European Union–non-European Union relations, this study presents comparative evidence on peoples’ preferences for the future of EUrope and their underlying reasons. We map citizen preferences using original open-ended survey question responses across eight European countries from within and outside the European Union. Our results show that non-European Union citizens’ preferences deviate more strongly from the status quo compared to those of European Union citizens. In contrast, risk-taking attitudes play no role for citizen preferences.

The impact of entrepreneurial orientation and company innovation on the business performance of manufacturing SMEs

This study examines the importance of entrepreneurial orientation in relation to innovation and performance within the context of manufacturing small and medium-sized enterprises (SMEs). Additionally, it looks into the impact of innovation on manufacturing SMEs' performance as well as the impact of entrepreneurial innovation on those SMEs' performance. The research population involved all manufacturing SMEs in Gorontalo Province, Indonesia. Sampling processes apply the nonprobability sampling method. The selection of cluster sampling, involving 150 samples, was carried out purposively. Data analysis was carried out using structural equation modeling with software called Analysis of Moment Structures (Amos). The findings indicate a favorable and statistically significant relationship between entrepreneurial orientation and both innovation and performance in manufacturing small and medium-sized enterprises (SMEs). Furthermore, the integration of entrepreneurial orientation and innovation inside small and medium-sized firms (SMEs) operating in the manufacturing sector has been identified as having a substantial and advantageous influence on their overall performance. It is noteworthy that the introduction of innovation within a firm does not have any discernible influence on the operational performance of small and medium-sized enterprises (SMEs) in the manufacturing sector. This study suggests that people involved in manufacturing SMEs must boost their performance by being proactive towards an entrepreneurial orientation. It is recommended for SMEs in Gorontalo City to enhance the implementation of entrepreneurial orientation for the development of their businesses. It is also essential to consider the factors of proactive attitudes, enthusiasm, and risk-taking attitudes.

Risk Taking Attitude: Relations with Executive Functions and Sensation Seeking among a Section of Egyptian Adolescents

Objectives: Adolescence is an uncertain period of one's life. Even with perfect health, there is still a 2–3 times higher danger of injury or sudden demise during adolescence than in childhood. The major factors behind this increased disease and death are more risky behaviors of adolescents, i.e., driving, smoking, drinking, unprotected sexual encounters and drug consumption. Generally, adolescents have been seen to take big risks than others. One likely reason for people's differences lies in their mental capabilities, such as self-monitoring, judgment, planning and impulse control. Evidence has shown that teenagers, owing to less efficiency and integration of the brain system in the prefrontal cortex mainly, may lead to such risky behaviors. This study is also about evaluating the association of sensation performance and seeking as well as risky behavior on tests of the brain (executive) function. 
 Methods: A total of 250 adolescents (103 males, 147 females) 13 to 17 years of age (mean age 15.36 years, SD1.06 years) were recruited from secondary schools in two Egyptian cities: Tanta and Aswan. A validated Arabic version of the executive functions (BRIEF) and an Arabic-translated and validated version of Arnett's Sensation Seeking Inventory (AISS, Arnett, 1994) were applied to evaluate the sample. Risk-taking attitude was measured using Risk Orientation Questionnaire (Rohrmann, 1997) 
 Results: Both sensation seeking and executive functions are significantly associated with risk-taking attitudes. Intensity, MCI, BRI, and novelty are all significantly predicted risk-taking attitudes in this order. Finally, a comparison between males and females adolescents revealed a significant difference in favor of males in sensation seeking and risk-taking attitudes, whereas executive functions showed statistically significant differences favouring females.
 Conclusions: Our results point to the crucial part that executive control plays in adolescents' risk-taking behaviour.

Impact of Risk-Taking Attitude and Need for Achievement on Women Entrepreneurs Success

Entrepreneurship is seen as a crucial component of financial dynamism and actively contributes to a nation’s financial development, the creation of jobs, and the advancement of its economic development. This examines the impact of risk-taking attitude and need for achievement on women entrepreneurs’ success. The results confirmed thatrisk taking attitude and need for motivationsignificantly facilitates the women entrepreneur’s success

The impact of entrepreneurial orientation on firm performance: Exploring the moderating influence of trust and organizational commitment in the Indian IT/ITE sector

The purpose of the research study is to test how entrepreneurship orientation influences Indian MSME’s performance and to delineate the moderation effect of trust in leadership and employee commitment on the relationship between entrepreneurial orientation and firm performance. Based on the social exchange theory, the study tested how firm performance is affected by Entrepreneurship Orientation such that relationships can be exchanged by trust and commitment. Applying descriptive research design, data were collected from randomly selected IT and ITE consulting firms located in Bangalore (A metro Tier I city in the country which presents close to 80 percent of Indian IT and ITE companies’ establishment (timesofindia, 2020)). The hypothesized model was tested using SEM analysis. This study aims to: (1) examine the relationship between entrepreneurial orientation and firm performance within the context of Indian Micro, Small, and Medium Enterprises (MSMEs), with a specific focus on consulting organizations; (2) assess the moderating influence of trust among members on the relationship between entrepreneurial orientation and firm performance; and (3) investigate the interaction effect of managerial commitment on the relationship between entrepreneurial orientation and firm performance, thereby enhancing our understanding of the dynamics at play within MSMEs, particularly in the consulting sector. The capability of being innovative which measures entrepreneurial orientation impact firm performance and being proactive in the business over entrepreneurial orientation positively impacts firm performance while risk-taking attitude and firm performance relationship are not significant. This result is in support of the previous research report that showed only the innovativeness and proactiveness variable. Further, it is noticed from the hierarchical regression analysis that proactiveness and firm performance are moderated by the level of trust that the employee has in his/her functional manager, and proactiveness and firm performance are also moderated by the employee’s level organizational commitment.

Why does female voters prefer vote buying in local head elections?

This study aims to analyze the determinants of vote buying preferences among female voters in local head elections. We identify eight independent variables (education, income, welfare, happiness, risk-taking attitude, place of residence, age, and marital status) as a predictor of Y. This research used the 5th Indonesian Family Life Survey (IFLS) data, which was collected by Rand Corporation, Ltd., during 2014 – 2015 in 13 (thirteen) provinces in Indonesia. The data were analyzed by logistic regression technique using STATA 15. The results showed that only four independent variables had a statistically significant relationship with Y: education level, risk-taking attitude, income level, and marital status. These four independent variables can explain Y by 2.48% significantly, X2 (4) = 357.23, p < 0.01. At the variable level, all variables have a negative relationship with Y, except for marital status (142%) which has the largest contribution to explain Y. The effect of income, risk-taking attituted, and education on Y respectively is 90.62%, 80.90%, 31.11%. The final model of logistic regression produces the characteristics of female voters who tend to choose candidates local head election due to money politics: education below senior high school/equivalent, married, poor, and not willing to take risks. The author recommends all governments at all levels continue the modernization process in all aspects of the social life of Indonesian citizens.

Using Hierarchical Regression to Examine the Predictors of Sexual Risk-Taking Attitudes among Adolescents Living with Human Immunodeficiency Virus in Uganda

PurposeWe explored the factors influencing sexual risk-taking attitudes—defined as beliefs and values regarding sexual activity—among adolescents living with human immunodeficiency virus (ALHIV) in Uganda. MethodsThe study used baseline data from a five-year cluster-randomized control trial (2012–2018) among 702 ALHIV in Uganda. Participants were aged 10–16 years, HIV-positive, taking antiretroviral therapy, and living within a family. We fitted hierarchical regression models to assess the demographic, economic, psychological, and social predictors of sexual risk-taking attitudes. Using R2, the final model explained 11.4% of the total variance. ResultsUnder economic factors, caregiver being formally employed (β = −0.08, 95% confidence interval [CI]: −0.10–0.06, p < .001), and the ALHIV working for pay (β = 1.78, 95% CI: 0.28–3.29, p = .022), were associated with sexual risk-taking attitudes. Among the psychological factors, more depressive symptoms (β = 0.22, 95% CI: 0.11–0.32, p < .001) were associated with more approving attitudes toward sexual risk-taking. Family and social factors including communicating with the caregiver about HIV (β = 1.32, 95% CI: 0.56–2.08, p = .001), sex (β = 1.09, 95% CI: 0.20–1.97, p = .017), and experiencing peer pressure (β = 3.37, 95% CI: 1.85–4.89, p < .001) were also associated with more approving attitudes toward sexual risk-taking. The final model explained 11.54% of the total variance. DiscussionEconomic, psychological, and social factors influence sexual risk-taking attitudes among ALHIV. There is a need for more research to understand why discussing sex with caregivers improves adolescents' positive attitudes toward sexual risk-taking. These findings have significant ramifications in preventing sexual transmission of HIV among adolescents in low-income settings.

“At Least, at the Border, I Am Killing Myself by My Own Will”: Migration Aspirations and Risk Perceptions among Syrian and Afghan Communities

It is well-documented that border controls make migration journeys riskier for people on the move. Policymakers construe deaths in migration journeys as resulting from the individual risk-taking attitudes of migrants. However, risks involved in migration journeys are not only related to border control measures. Based on the analysis of 30 semi-structured interviews conducted with Syrian and Afghan migrants in Turkey, we embrace a social constructionist approach to unpack how migrants form their aspirations based on their risk perceptions. Our findings explain why some migrants would still move onwards despite violent borders while others stay or search for “safer” ways for onward migration.