Risk-taking Propensity Research Articles

The Developmental Timing but Not Magnitude of Adolescent Risk-Taking Propensity Is Consistent Across Social, Environmental, and Psychological Factors

PurposeRisk-taking is thought to peak during adolescence, but most prior studies have relied on small convenience samples lacking participant diversity. This study tested the generalizability of adolescent self-reported risk-taking propensity across a comprehensive set of participant-level social, environmental, and psychological factors. MethodsData (N = 1,005,421) from the National Survey on Drug Use and Health were used to test the developmental timing and magnitude of risk-taking propensity and its link to alcohol and cannabis use across 19 subgroups defined via sex, race/ethnicity, socioeconomic status, population density, religious affiliation, and mental health. ResultsThe developmental timing of a lifespan peak in risk-taking propensity during adolescence (15–18 years old) generalized across nearly all levels of social, environmental, and psychological factors, whereas the magnitude of this peak widely varied. Nearly all adolescents with regular substance use reported higher levels of risk-taking propensity. DiscussionResults support a broad generalizability of adolescence as the peak lifespan period of self-reported risk-taking but emphasize the importance of participant-level factors in determining the specific magnitude of reported risk-taking.

Career planning and turnover intention: a moderated moderation model of career plateau and risk-taking propensity

PurposeThis article aims to examine the boundary conditions of the relationship between career planning and turnover intention and the joint moderating effects of career plateau and risk-taking propensity on the relationships between career plateau and turnover intention.Design/methodology/approachThe data of this paper is collected from 231 employees from Taiwanese organizations with more than four years of work experience.FindingsThe results indicate that career plateau significantly moderates the relationships between career planning and turnover intention. The relationships between career planning and turnover intention are weaker when career plateau and risk-taking propensity are low in the three-way interaction effect.Originality/valueThe article examined the moderated moderation model of career planning and turnover intention using career plateau and risk-taking propensity as moderators.

Birth-order effects on risk taking are limited to the family environment.

Why is the empirical evidence for birth-order effects on human psychology so inconsistent? In contrast to the influential view that competitive dynamics among siblings permanently shape a person's personality, we find evidence that these effects are limited to the family environment. We tested this context-specific learning hypothesis in the domain of risk taking, using two large survey datasets from Germany (SOEP, n = 19,994) and the United States (NLSCYA, n = 29,627) to examine birth-order effects on risk-taking propensity across a wide age range. Specification-curve analyses of a sample of 49,621 observations showed that birth-order effects are prevalent in children aged 10-13 years, but that they decline with age and disappear by middle adulthood. The methodological approach shows the effect is robust. We thus replicate and extend previous work in which we showed no birth-order effects on adult risk taking. We conclude that family dynamics cause birth-order effects on risk taking but that these effects fade as siblings transition out of the home.

Effect of circadian rhythm on NAD and other metabolites in human brain.

Nicotinamide Adenine Dinucleotide (NAD) plays a central role in the master circadian clock of the brain (the suprachiasmatic nuclei, SCN) as demonstrated in many model organisms. NAD acts as an enzyme co-factor and substrate and its modulation was found to be tightly regulated to the periodicity of the cycles. However, in human brain, the effect of the circadian rhythm (CR) on the metabolism of the SCN and other brain regions is poorly understood. We conducted a magnetic resonance spectroscopy (MRS) study at a high magnetic field, measuring the occipital brain NAD levels and other metabolites in two different morning and afternoon diurnal states in 25 healthy participants. Salivary cortisol levels were determined to confirm that the experiment was done in two chronologically different physiological conditions, and a behavioral test of risk-taking propensity was administered. Overall, we found that the CR did not significantly affect NAD levels in the occipital brain region. The other brain metabolites measured, including lactate, were not significantly affected by the CR either, except for taurine. The CR did impact risk-taking behavior and salivary cortisol level, confirming that the participants were in two circadian different behavioral and physiological states in the morning and in the afternoon. Measurement of the CR effect on NAD and taurine levels in other brain regions might provide stronger effects.

40 Sex Differences in Emotional Intelligence Ability and Risk-Taking Behavior

Objective:People differ in their propensity to engage in risky behaviors. Numerous factors such as cognition and personality have been utilized in predicting risk-taking, but little is known about the influence of stable emotional competencies, such as Emotional Intelligence (EI), in risk-taking. EI is defined as the ability and capacity to understand, perceive, and manage one's own, as well as others', emotions. However there has been little published research on the effect of ability emotional intelligence in engaging in risk- taking behavior. We hypothesized that those with higher emotional intelligence ability scores would demonstrate higher and more optimal risk-taking propensity. Furthermore, as prior research has demonstrated that males engage in more risk-taking behaviors, we accounted for sex differences within our analysis.Participants and Methods:One-hundred and twelve healthy adults completed this study, including 56 females (Mage=21.7, SD=5.8) and 56 males (Mage=21.5, SD=3.2). The Mayer-Salovey-Caruso Emotional Intelligence Test (MSCEIT) was used to assess total EI ability while the Balloon Analog Risk Task (BART) was used to assess risk-taking propensity. We specifically analyzed adjusted number of pumps on unexploded balloons throughout the BART to account for the increased risk. We conducted Pearson correlations and a multiple regression to assess the if ability emotional intelligence and gender significantly predicted risk-taking propensity.Results:There was a significant correlation between total emotional intelligence ability score and adjusted number of pumps on the BART for females, r(55)=.362, p = .006, but not for males r(55)=.053, p=.701, suggesting that females who score higher in emotional intelligence ability also had a higher risk-taking propensity. Due to these findings, we conducted a multiple regression to assess if ability emotional intelligence and gender significantly predict risk-taking propensity on the BART. The results of the regression indicated the two predictors explained 9.0% of the variance (R2 =.09, F(2,108)=5.32, p<.01). However, it was found that ability emotional intelligence significantly predicted risk-taking propensity (β = .23, p<.05), but not sex (β = -.17, p=.06). There was no sex x EI interaction.Conclusions:Higher ability emotional intelligence was significantly related to greater risk-taking propensity, but this was only observed for females. However, the lack of significance of sex in significantly predicting risk-taking may just be due to lower statistical power in the study. Importantly, the adjusted number of pumps for the participants in this sample was generally far below the mid-point for popping balloons, suggesting that the higher scores observed here represent more optimal decision performance rather than just greater risk. Thus, greater EI may reflect greater capacity to learn from reward and punishment feedback and apply that learning to optimize performance. Future research should look at the effect of emotional intelligence training in improving optimal risk-taking, particularly for populations known for engaging in risky behaviors such as those with mTBI.

Sleep deprivation attenuates neural responses to outcomes from risky decision-making.

Sleep loss impacts a broad range of brain and cognitive functions. However, how sleep deprivation affects risky decision-making remains inconclusive. This study used functional MRI to examine the impact of one night of total sleep deprivation (TSD) on risky decision-making behavior and the underlying brain responses in healthy adults. In this study, we analyzed data from N = 56 participants in a strictly controlled 5-day and 4-night in-laboratory study using a modified Balloon Analogue Risk Task. Participants completed two scan sessions in counter-balanced order, including one scan during rested wakefulness (RW) and another scan after one night of TSD. Results showed no differences in participants' risk-taking propensity and risk-induced activation between RW and TSD. However, participants showed significantly reduced neural activity in the anterior cingulate cortex and bilateral insula for loss outcomes, and in bilateral putamen for win outcomes during TSD compared with RW. Moreover, risk-induced activation in the insula negatively correlated with participants' risk-taking propensity during RW, while no such correlations were observed after TSD. These findings suggest that sleep loss may impact risky decision-making by attenuating neural responses to decision outcomes and impairing brain-behavior associations.

위험감수성향과 창업교육이 관광전공 대학생의 창업의도에 미치는 영향

In accordance with the increasing attention in entrepreneurship among tourism industry, this study carried out with the aim of verifying factors affecting on tourism major students’ entrepreneurial intention using modified entrepreneurial intention model. Statistical analysis was conducted based on 216 valid questionnaire answers. SPSS 23.0 and AMOS 23.0 were used to analyze the collected data. Results show that risk-taking propensity had a significant positive effect on entrepreneurial attitude. And subjective norm(SN) had a significant positive relationship with entrepreneurial attitude, perceived behavioral control(PBC) and entrepreneurial intention as well. Both entrepreneurial attitude and PBC had a significant positive effect on entrepreneurial intention. The moderating effect of entrepreneurship education was found on the relationships between risk-taking propensity and entrepreneurial attitude, SN and entrepreneurial attitude, SN and PBC. Based on these findings, this study provide theoretical and practical implication for promoting entrepreneurial intention of tourism major students. It also suggests the improvement of entrepreneurial education at universities.

Does CEO Power Affect the Relations between CEO Compensation and Risk-Taking?

Purpose - This study investigates the effect of incentive compensation and CEO power on a firm’s risk-taking behavior, leveraging stock return volatility and earnings volatility as the key indicators of risk-taking.
 Design/Methodology/Approach - A comprehensive analysis is conducted using data from 1,958 U.S. firms over a 28-year period (1992- 2019). The study employ both ordinary least square (OLS) regression and two-stage least square (2SLS) regression for analysis. Pay-volatility sensitivity (PVS) and CEO-pay slice (CPS) are used as proxies for incentive compensation and CEO power, respectively.
 Findings - The findings offer solid empirical proof that PVS and CPS have a negative influence on both earnings volatility and stock return volatility. Furthermore, the detrimental effect of PVS on managerial risk-taking is significantly more pronounced for CEOs with lower CPS compared with those with higher CPS. While incentive compensation appears to deter CEOs from embracing higher risks, CEOs with more power are less risk-averse when offered incentive compensation compared to their less powerful counterparts.
 Research Implications - This study significantly contributes to existing literature by revealing the interactive effects between CEO power and incentive compensation on a firm’s risk-taking behavior. Understanding these dynamics is pivotal as it offers a nuanced view of how CEO compensation structures and power hierarchies within a firm influence its risk-taking propensity, which is critical for both firm performance and broader financial stability considerations. The insights derived from this analysis can inform more balanced executive compensation structures and governance models that ensure an optimal level of risk-taking.

Birth Order and Executive Risk-Taking: A Study on CEO Behavioral Disposition

This paper explores the potential influence of chief executive officers’ (CEOs’) birth order on corporate decision-making. Drawing upon both theoretical frameworks and existing empirical studies, birth order considerably impacts individual personality attributes and risk aversion tendencies. Our analyses reveal a pronounced positive association between CEO’s birth order and their propensity for risk-taking. Specifically, CEOs born later in their familial succession are more inclined to risk-taking than their first-born counterparts, who are more conservative. These findings persist after controlling for CEO characteristics, year, and industry-specific factors. Moreover, further analyses were conducted to mitigate potential selection biases in companies choosing CEOs with specific risk preferences.

Entrepreneurial Behaviour of the Agriculture Students-A review

The present study aimed to investigate the factors that influence the entrepreneurial behavior of college students. The study identified various personal and situational factors that may affect entrepreneurial behavior. The results showed that personality traits, such as openness, extraversion, and conscientiousness, had a significant positive impact on entrepreneurial behavior. Specific motivational traits, such as entrepreneurial self-efficacy, internal locus of control, and risk-taking propensity, were also significant predictors of entrepreneurial behavior. Situational factors, such as entrepreneurship education, were found to have a significant positive impact on entrepreneurial behavior, with entrepreneurial self-efficacy playing a key mediating role in this relationship. Attitudes towards entrepreneurship were found to be a significant driver of entrepreneurial intention, with perceived desirability and feasibility, as well as perceived individual and collective efficacy, also significant predictors of entrepreneurial intention. Sustainable entrepreneurial intention was found to be influenced by attitude towards the behavior variable, with subjective norms playing an indirect role in mediating this effect. Overall, the study suggests that personal traits, such as personality and motivational factors, as well as situational factors, such as education and attitudes towards entrepreneurship, are significant predictors of entrepreneurial behavior. These findings have important implications for educators and policymakers who seek to promote entrepreneurial behavior among college students. Future research should continue to explore the complex relationships between personal and situational factors and entrepreneurial behavior to further enhance our understanding of this important phenomenon.

The Impact of Historical Performance and Managerial Risk-taking Propensity on the Behavior of Choosing Prospector Strategy and Using Strategic Management Accounting Information in Viet Nam Manufacturer

Strategic management accounting (SMA) supports managers in decision-making and activity control to accomplish both short- and long-term objectives. This study, based on the Upper Echelons Theory (UET), investigates how the CFO’s psychological trait—the propensity to take managerial risks, affects the decision to choose prospector strategy and uses SMA information. The main objective of this study is to find out what factors influence the behavior using SMA information. This study also takes into account the internal locus of control “s moderating role effect in some relationships. The CFOs of Vietnamese major manufacturers are investigated. The results have shown that: (1) the lower of the historical performance, the more likely CFOs are to choose the prospector strategy, the more CFOs have managerial risk-taking propensity, the more SMA information usage behavior increases; (2) the more CFOs have managerial risk-taking propensity, the more likely they are to choose the prospector strategy, and the behavior of using SMA information also increases; (3) the CFOs” internal locus of control (ILOC) trait plays a moderator role in increasing their SMA information usage behavior and prospector strategy selection trend. This study adds to accounting expertise by highlighting the significance of SMA information for decision-making, the CFO’s management risk-taking propensity, and helping top managers develop an effective SMA system.

The Functional State of Emotion-Motivational Brain Regulatory Systems and Risk-Taking Propensity in Adolescents

The Functional State of Emotion-Motivational Brain Regulatory Systems and Risk-Taking Propensity in Adolescents

Encouraging SMEs performance through entrepreneurial intentions, competencies, and leadership: serial mediation model

PurposeThe study aims to investigate the effect of entrepreneurial leadership (EL), competencies (ECs) and intentions (EIs) on enterprise performance (EP) via entrepreneurial resilience (ER) and risk-taking propensity (RTP).Design/methodology/approachData were collected from 403 early-stage small and medium enterprise (SME) owners in Pakistan at two-time intervals and were analyzed using AMOS 22.FindingsAll predictors (i.e. EIs, EL and ECs) positively affected EP and ER, except for EL and ER. Furthermore, RTP and ER were serially mediated in linking EIs and ECs with EP but could not establish a link between EL and EP.Research limitations/implicationsThe findings reveal that the Pakistani government and business owners must focus on SMEs’ sustained development and prioritize ECs.Originality/valueThis paper is unique in nature, as understanding EIs, EL and ECs in a holistic framework has never been tested before in relation to EP.

Factors Impacting Students' Intention for Sustainable Entrepreneurship

This study presents the findings of an extensive investigation into the variables that influence college students' plans to engage in sustainable business practices. The research set out to determine what characteristics had the most impact on students' propensity to engage in sustainable entrepreneurial activities and then evaluate those results. In this quantitative study, a total of 370 persons were selected at random to take part in an online survey. The study utilized SPSS and Amos, and for data reliability testing, the researchers used Cronbach's alpha, exploratory factor analysis, and structural equation modeling. The results showed that characteristics like subjective norms and risk-taking propensity influenced students' sustainable entrepreneurial intentions in a positive way. The extent to which students felt social pressure to perform or engage in specific activities (as measured by subjective norms) was a significant predictor of their plans for future business endeavours. Students' long-term business outlook was found to be significantly influenced by their openness to risk, here defined as activities with unknown repercussions. Schools and governments can use the study's findings to inform policy and curriculum development aimed at fostering the next generation of sustainable business leaders. Long-term thinking is beneficial for both enterprises and society as a whole in an environment that supports sustainable practises. Keywords: Sustainable entrepreneurship, Policy and curriculum development, Students' inten

The influence of learning orientation on entrepreneurial performance: The role of business model innovation and risk-taking propensity

It is commonly known in the literature that learning orientation (LO) plays a critical role in enhancing startups’ performance by nurturing firms’ capabilities, stimulating active learning, and generating new knowledge. Based on this, using entrepreneurship theory, this study empirically tested a theoretical research model to create business model innovation (BMI) for start-ups. Specifically, this study examines the impact of the LO on EP. Also, the study explored the mediating role of BMI in the link between LO and start-up EP. Further, the present study explored the moderating role of propensity to take risks to probe this nexus. The research design was quantitative, and cross-sectional data obtained through questionnaire survey of 421 managers of start-ups with fewer than six years of business operations in Turkey was utilized to verify the relationships. The results indicated that LO has a positive impact on EP. LO has a positive impact on BMI. BMI has a positive impact on EP. Business model innovation mediated the relationship between LO and EP. Propensity to take risk moderates the positive link between LO and BMI, such that at lower levels of propensity to take risk, the strength of the positive link is weakened. Propensity to take risk moderated the positive relationship between LO and EP, such that at higher levels of propensity to take risk, the strength of the positive relationship is further intensified. This research contributes to the existing literature on entrepreneurship and innovation by demonstrating the importance of BMI and the propensity to take risks for start-ups to attain performance

The Functional State of Emotion-Motivational Brain Regulatory Systems and Risk-Taking Propensity in Adolescents

The aim of this study was to identify relationships between the functional state of the different brain regulatory systems (BRS), voluntary control and emotional-motivational regulation in adolescents (n = 95, age ~13.96 ± 1.13, girls 34%). We also analyzed the relationship between individual characteristics of emotional-motivational regulation and risk-taking tendencies in separated groups with specific EEG signs of suboptimal functional state of the BRS. Five tests were performed: 1) assessment of individual traits of achievement motivation vs. failure avoidance using the Mehrabian Questionnaire (TMD), 2) emotional intelligence (EI) using the MSCEIT 2.0, 3) assessment of propensity to risky decision-making by monetary computer game Baloon Analog Risk Task. On the basis of a qualitative analysis of the EEG, 4) the participants were classified into groups showing evidence of suboptimal functioning of the frontothalamic (FTS), limbic (LMB), frontobasal (FBZ) and to control group in the case of absence of specific signes. All groups, except control, showed a decrease in the EI scale, which associate sensations with emotions. A specific decrease in EI indicators was found in experimental groups in comparison with the control group: FTS – on the scale of understanding blended emotions; LMB — on the scale of facilitation of cognitive activity by emotions; FBZ group — on a scale reflecting the ability to manage one’s own emotions. The indicators of the Mehrabian questionnaire showed propensity towards achievement motivation in the LMB. Correlations between EI, achievement motivation and risk-taking: in FTS, LMB a positive correlation of the risk-taking with the scale associate sensations with emotions. For LMB there is also a positive correlation between risk-taking, understanding and management of emotions. The results are discussed in terms of the influence of the suboptimal state of brain regulatory systems on the emotional and motivational regulation in adolescents.

Investigating the impact of formal ethical infrastructure in the organization on the ethical decision-making of accountants by expressing the mediating role of risk-taking propensity

Investigating the impact of formal ethical infrastructure in the organization on the ethical decision-making of accountants by expressing the mediating role of risk-taking propensity

Psychological Well-being and Ethical Decision-making of Accountants with the Mediating Role of Individual Risk-taking Propensity: A Case Study of Accountants of Kashi Companies in Yazd Province

Psychological Well-being and Ethical Decision-making of Accountants with the Mediating Role of Individual Risk-taking Propensity: A Case Study of Accountants of Kashi Companies in Yazd Province

The motivational influence of collective efficacy and charged behavior and the moderating effect of risk-taking propensity on new product development team innovativeness

PurposeThis study examines the motivational processes of charged behavior and collective efficacy driving interdependence and agency in new product development (NPD) teams and the moderating impact of team risk-taking propensity as affective, cognitive and behavioral social processes support team innovation.Design/methodology/approachData were collected from 92 NPD teams engaged in B2C and B2B product and service development. Mediating and moderating effects are examined using partial least squares structural equation modeling, referencing social cognitive and collective agency theories as the research framework.FindingsThe analysis validates collective self-efficacy and charged behavior as interdependent motivational–affective processes that align cognitive resources and govern team effort toward innovativeness. Teams' risk-taking propensity regulates behavior, and collective efficacy facilitates self-regulated motivational engagement. Charged behavior cultivates the emotional contagion, team identification, cohesion and adaptation required for team functioning. Team potency fosters cohesiveness, while team learning improves adaptability along the innovation journey. The resulting theory asserts that motivational drivers enhance the interplay between cognitive and behavioral processes.Practical implicationsManagers should consider NPD teams as social systems with a capacity for collective agency nurtured through interdependence, which requires collective efficacy and shared competencies to generate motivational purpose and innovativeness. Managers must remain mindful of teams' risk tolerance as regulating the impact of motivational factors on innovativeness.Originality/valueThis study contributes to research on the motivational–affective drivers of NPD charged behavior and collective efficacy as complementary to cognitive and behavioral processes sustaining team innovativeness.

The role of innovation ambidexterity on the relationship between cognitive computing capabilities and entrepreneurial quality: A comparative study of India and China

Cognitive computing holds potential for improving the information processing capabilities of organizations by providing a computing infrastructure that support business analytics for both structured and unstructured data. It offers a basis for entrepreneurial activities, as it helps obtain and analyze market intelligence to extend business opportunities. Based on dynamic capabilities theory, this empirical study conceptualizes and establishes the linkages between cognitive computing capabilities, which is resultant of technology led information aggregation, and processing capabilities and entrepreneurial quality while examining the moderating effect of innovation ambidexterity as a capability of organizations in a comparative analysis of China and India. The findings based on a survey of 300 firms from the two countries, reveal a positive impact of cognitive computing capabilities on entrepreneurial quality in both countries. Innovation ambidexterity is found playing instrumental role in the case of India, but not in China. This study contributes to the understanding of four measures of entrepreneurship quality, i.e. risk-taking propensity, pro-activeness, frequency and innovativeness, from a dynamic capabilities lens in the context of cognitive computing capabilities and provides empirical validation to the established association in a comparative context of China and India. The findings are discussed in light of academic and managerial implications.