Catch me if I fall: Cross-national differences in willingness to take financial risks as a function of social and state ‘cushioning’

Schneider, Claudia R.; Fehrenbacher, Dennis D.; Weber, Elke U.

doi:10.1016/j.ibusrev.2017.03.008

Cited by 21 publications

(23 citation statements)

References 36 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Chinese participants, as representatives of a more collectivist culture, showed less risk-aversion in financial risk-taking than American participants (Weber et al, 1998 ; Hsee and Weber, 1999 ). In accordance with cushion hypothesis social networks, rather than nationality, predict risk preference in empirical studies (Schneider et al, 2017 ; Illiashenko, 2019 ). Moreover, not only risk attitudes differed between Chinese and more analytical Americans, but Chinese proverbs were more risk-promoting than American proverbs (Weber et al, 1998 ).…”

Section: Personality and Cultural Background Factors Shape Narrative mentioning

confidence: 61%

Neural Processing of Narratives: From Individual Processing to Viral Propagation

Jä̈askëlainen

Klucharev

Panidi

et al. 2020

Front. Hum. Neurosci.

View full text Add to dashboard Cite

Narratives, in the form of, e.g., written stories, mouth-to-mouth accounts, audiobooks, fiction movies, and media-feeds, powerfully shape the perception of reality and widely influence human decision-making. In this review, we describe findings from recent neuroimaging studies unraveling how narratives influence the human brain, thus shaping perception, cognition, emotions, and decision-making. It appears that narrative sensemaking relies on default-mode network (DMN) structures of the brain, especially precuneus. Activity in precuneus further seems to differ for fictitious vs. real narratives. Notably, high inter-subject correlation (ISC) of brain activity during narrative processing seems to predict the efficacy of a narrative. Factors that enhance the ISC of brain activity during narratives include higher levels of attention, emotional arousal, and negative emotional valence. Higher levels of attentional suspense seem to co-vary with activity in the temporoparietal junction, emotional arousal with activity in dorsal attention network, and negative emotional valence with activity in DMN. Lingering after-effects of emotional narratives have been further described in DMN, amygdala, and sensory cortical areas. Finally, inter-individual differences in personality, and cultural-background related analytical and holistic thinking styles, shape ISC of brain activity during narrative perception. Together, these findings offer promising leads for future studies elucidating the effects of narratives on the human brain, and how such effects might predict the efficacy of narratives in modulating decision-making.

show abstract

Section: Personality and Cultural Background Factors Shape Narrative mentioning

confidence: 61%

Neural Processing of Narratives: From Individual Processing to Viral Propagation

Jä̈askëlainen

Klucharev

Panidi

et al. 2020

Front. Hum. Neurosci.

View full text Add to dashboard Cite

show abstract

“…For the purpose of this research, we define risk as the possibility that events will turn out differently than anticipated (Miller & Lessard 2007). We argue that national culture influences risk-taking behaviour of individuals and firms (Schneider et al 2017). Chinese firms engaging in international trade do use financial derivatives to cover against fluctuations in exchange rates (Fei 2012 (Kardes et al 2013).…”

Section: Conceptual Development and Hypothesesmentioning

confidence: 99%

Risk perceptions and risk management approaches of Chinese overseas investors: An empirical investigation

Ullah

Wang

Stokes

et al. 2019

Research in International Business and Finance

View full text Add to dashboard Cite

We investigate how Chinese firms perceive and tackle risks associated with their overseas investments.  Our survey data consist of 289 responses from firms located in 15 different provinces in China.  The risk exposure of Chinese firms vary with respect to three prominent factors: firm ownership structure, investment motives, and the host country institutional quality.  Our evidence identifies a significant degree and pattern of heterogeneity in the strategic behaviour of Chinese investors in risky environments.

show abstract

“…Child et al (2017) also found that the international business models of emerging countries are less focused on innovation compared to their developed market peers and that the level of development of the national economy affects the international business model of entrepreneurial firms. Furthermore, Schneider et al (2017) found that the willingness to take financial risks differs across countries due to the level of institutional support. Covin and Miller (2014) concluded from their review that EO can be influenced by national economic development.…”

Section: Institutional Environment and Eomentioning

confidence: 99%

Cross-Country Differences in Entrepreneurial Internationalization Tendencies: Evidence from Germany and Pakistan

Middermann

Rashid

2019

Administrative Sciences

View full text Add to dashboard Cite

Previous research has emphasized the importance of entrepreneurial characteristics for international entrepreneurship, hence the application of concepts such as entrepreneurial orientation and global mindset to the study of entrepreneurial internationalization tendencies (EIT). However, literature does not adequately address how EIT differ between countries or manifest in fragile country settings. We address this gap through a quantitative study to investigate EIT in two national settings that largely differ in terms of development, institutional stability, and culture. Through the lens of the institutional theory and the mindset theory, we therefore piloted the study on 112 high-growth startups in Germany and Pakistan. Our findings show, that while entrepreneurs in Germany and Pakistan show comparable levels of innovativeness and proactiveness, they significantly differ in other EIT measures. German entrepreneurs appear to have higher levels of risk-taking, which when explained through the institutional theory lens can be attributed to the higher institutional stability and support as well as social security in Germany. This potentially makes engagement in risky activities, such as business internationalization, more appealing than in Pakistan. However, despite having lower international cognition and international knowledge compared to Germany, Pakistani entrepreneurs appear to exhibit higher degrees of international behavior.

show abstract

Catch me if I fall: Cross-national differences in willingness to take financial risks as a function of social and state ‘cushioning’

Cited by 21 publications

References 36 publications

Neural Processing of Narratives: From Individual Processing to Viral Propagation

Neural Processing of Narratives: From Individual Processing to Viral Propagation

Risk perceptions and risk management approaches of Chinese overseas investors: An empirical investigation

Cross-Country Differences in Entrepreneurial Internationalization Tendencies: Evidence from Germany and Pakistan

Contact Info

Product

Resources

About