Characteristics of Risk Taking Executives

MacCrimmon, Kenneth R.; Wehrung, Donald A.

doi:10.1287/mnsc.36.4.422

Cited by 400 publications

(218 citation statements)

References 13 publications

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“…First, different methods of measuring risk preference have been shown to result in different classifications (MacCrimmon & Wehrung, 1990). Second, even with the same assessment method, individuals have not shown themselves to be consistently risk seeking or risk averse across different domains and situations, both in laboratory studies and in managerial contexts.…”

Section: Cross-cultural Research Should Have a Guiding Theorymentioning

confidence: 99%

Models and mosaics: Investigating cross-cultural differences in risk perception and risk preference

Weber

Hsee

1999

Psychonomic Bulletin & Review

120

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In this article, we describe a multistudy project designed to explain observed cross-national differences in risk taking between respondents from the People's Republic of China and the United States. Using this example, we develop the followingrecommendations for cross-cultural investigations. First, like all psychological research, cross-cultural studies should be model based. Investigators should commit themselves to a model of the behavior under study that explicitly specifies possible causal constructs or variables hypothesized to influence the behavior, as well as the relationship between those variables, and allows for individual, group, or cultural differences in the value of these variables or in the relationship between them. This moves the focus from a simple demonstration of cross-national differences toward a prediction of the behavior, including its cross-national variation. Ideally,the causal construct hypothesized and shown to differ between cultures should be demonstrated to serve as a moderator or a mediator between culture and observed behavioral differences. Second, investigators should look for converging evidence for hypothesized cultural effects on behavior by looking at multiple dependent variables and using multiple methodological approaches. Thus, the data collection that will allow for the establishment of conclusive causal connections between a cultural variable and some target behavior can be compared with the creation of a mosaic.Since its beginnings as Volkerpsychologie in 19th-century Germany, cross-cultural psychology has never been able to establish itself as something more than a minor subdiscipline of psychology (see Cole, 1996, Chap. I, for a brief history). Its contributions are largely confined to books, edited volumes, and its own speciality journals, which are not widely read by mainstream psychologists. Yet, the argument, put forth by cross-cultural psychologists, that all conclusive psychological investigation must involve comparisons of behavior across cultures seems hard to refute.Given the complexities of human life and the importance of culture as a behavioral determinant, it obviously behooves psychologists to test the cross-cultural generality of their principles before considering them established.

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Section: Cross-cultural Research Should Have a Guiding Theorymentioning

confidence: 99%

Models and mosaics: Investigating cross-cultural differences in risk perception and risk preference

Weber

Hsee

1999

Psychonomic Bulletin & Review

120

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“…Talbi (2014) states that while young managers are more concerned with their careers, and to boost the earnings (increasing earnings), they are able to incur to great risks strategies by adopting myopic behavior. They are, as well, less risk averse (Hambrick and Mason, 1984;MacCrimmon and Wehrung, 1990;Joos et al 2003). Hence, they are more likely to engage in increasing earnings (Davidson et al, 2007).…”

Section: Control Variablesmentioning

confidence: 99%

Why Do Companies From Emerging Countries Manage Earnings?

Callao¹,

Jarne²,

Wróblewski³

2017

EJBM

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This paper provides evidence in terms of the incentives which lead managers from emerging European countries to manage earnings. In particular, we focused on four Eastern European countries: the Czech Republic, Poland, Hungary and Slovakia, as the majority of studies on earnings management in developing countries were based on the Asian emerging market. The market of developing European countries is still barely explored. After we confirmed that managers from emerging European companies manage earnings, we find that within the different incentives which lead managers to earnings management, the avoidance of debt covenants violations is a strong incentive for managers. Additionally, those firms considered as poor investments (with less value) have incentives to manage earnings down as a consequence to opt for market niche. Moreover, emerging Eastern European companies have incentives to flatten earnings of current periods in order to benefit in the future as the source of future nonmanipulated earnings will be insufficient, as they may expect reduced, or at least lower future performance of their companies affected by increasing global competition. Finally, we confirm that privately-owned companies tend to maximize accounting earnings more than state-owned companies because they are in a weaker position related to a specific political and historical factors.

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“…Il entreprend inconsciemment des actions risquées, présentant une haute probabilité de consé-quences décevantes, sans s'en rendre compte, car il en perçoit moins de risque et de menace (Kahneman et Lovallo, 1993;MacCrimmon et Wehrung, 1990;et March et Shapira, 1987).…”

Section: Biais Cognitifs Et Prise De Risque Managériale : Revue De LIunclassified

“…Nous estimons ce que cette variable influe négativement la prise de risque du dirigeant (Kahneman et Lovallo, 1993;MacCrimmon et Wehrung, 1990;March et Shapira, 1987).…”

Section: Mesure Des Biais Cognitifsunclassified

Biais Cognitifs et Prise de Risque Managériale : Validation Empirique dans le Contexte Tunisien

Belanes¹,

Hachana

2010

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RésuméLe contexte de prise de décision est entaché par des biais cognitifs. Se basant sur un échantillon de 46 entreprises tunisiennes cotées durant 1997-2006, nous avons d’abord observé l’influence de trois biais (sur-confiance, mimétisme et illusion de contrôle) sur la perception du risque et ensuite, nous avons analysé la relation entre cette perception et la prise de risque effective. Nos résultats concluent à l’existence d’une relation positive entre le biais de sur-confiance et de mimétisme et la prise de risque et à une relation négative entre le biais de l’illusion de contrôle et la prise de risque managériale.

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Characteristics of Risk Taking Executives

Cited by 400 publications

References 13 publications

Models and mosaics: Investigating cross-cultural differences in risk perception and risk preference

Models and mosaics: Investigating cross-cultural differences in risk perception and risk preference

Why Do Companies From Emerging Countries Manage Earnings?

Biais Cognitifs et Prise de Risque Managériale : Validation Empirique dans le Contexte Tunisien

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