Cross-cultural assessment and comparisons of risk tolerance across domains

Abstract

Risk attitudes are known to play an important role in influencing one’s behavior under conditions of uncertainty. To date, cultural influences on risk attitudes - beyond the effects they have on perceived risk - have not been well understood. Having a cross-culturally invariant measure of risk attitudes is a prerequisite for carrying out more in depth explorations in this area. The current study applied the domain-specific risk attitudes framework and focused on the Chinese and US cultural contexts. Using novel network analysis techniques, we explored domain-specific patterns of risk attitudes in Chinese and US community samples and we subsequently developed a version of the Multi-Domain Risk Tolerance scale (MDRT-EC) that had similar applicability in both samples. The MDRT-EC demonstrated excellent psychometric characteristics and achieved strong measurement invariance across both samples. The associations between MDRT-EC domain scales and criterion scales were also similar between the two samples, further indicating the measurement invariance of the MDRT-EC. Finally, we used the MDRT-EC to explore cultural differences in risk attitudes across domains and their predictive relations with a range of lifestyle behaviors.

An examination and extension of the Peltzman effect during the Covid-19 pandemic

“…However, contrary to expectations, studies have suggested that Chinese people, despite being collectivistic individuals, have a higher financial risk tolerance than Americans. These findings are based on the cushion hypothesis, which indicates that in collectivistic cultures, people have a stronger social network that provides more financial help for those in need ( Hsee and Weber, 1999 ; Shou et al., 2022 ). Shou et al.…”

“…These findings are based on the cushion hypothesis, which indicates that in collectivistic cultures, people have a stronger social network that provides more financial help for those in need ( Hsee and Weber, 1999 ; Shou et al., 2022 ). Shou et al. (2022) suggest that this could also apply to health contexts.…”

“…(2022) suggest that this could also apply to health contexts. Based on this, “certain health risks may also be mitigated by one's social network, such as being taken care of by one's family members” ( Shou et al., 2022 , p. 10). Thus, future studies are needed that consider cross-cultural differences, focusing not only on differences in the constructs of compliance and risk-taking but also on their combination.…”

Determinants of Risk Tolerance of Investors in Nepal

“…In regards to culture, studies of (Statman & Weng, 2010) show how cultural factors can have effect in the risk tolerance of investors. Also, studies of (Amirhosseini & Okere, 2012), (Shou, Olney, & Wang, 2022) show the relationship between cultural factors and risk tolerance. However, there has not been the inclusive study in this topic covering all the factors in one paper.…”

Exploring Cultural Influences on Project Management Approaches in Global Business Development

“…Simultaneously, it was explained that exploring the impact of cultural diversity is important for development of effective project management approaches in multinational teams and they may become effective instruments for improving cooperation and organization productivity (Pavez et al, 2022;Rodríguez-Rivero et al, 2020). Therefore, critical assessment of cultural influences on project management may positively change communication styles (Szpilko et al, 2022), risk tolerance (Rodríguez-Rivero et al, 2020;Shou et al, 2023), motivation of employees (Dasí et al, 2021), and relationship building (Tian, 2020). In addition, effective culturally diverse teams lead to introduction of innovations (Jones et al, 2020), offer modernization strategies to transition of business processes to the conditions of global environment (Burkiewicz & Knap-Stefaniuk, 2022;Onyusheva et al, 2020), and eliminate unnecessary, or redundant tasks (Duchek et al, 2020;Hu et al, 2019).…”