Measures of individual risk attitudes and portfolio choice: Evidence from pension participants

Gürdal, Mehmet Y.; Kuzubaş, Tolga Umut; Saltoğlu, Burak

doi:10.1016/j.joep.2017.06.010

Cited by 21 publications

(21 citation statements)

References 30 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…These controls are crucial as these variables are known to be related to risk attitudes and the sex and age structures are different among students, novices, and experienced firefighters. Consistently with the literature, we find that risk aversion increases with age (Dohmen et al, 2011;Palsson, 1996;Gurdal et al, 2017). Table 2 The OLS regression on data from all students and firefighters The variable experienced shows that the firefighters with two or more years in the fire rescue service are more 5 risk-seeking than novices.…”

Section: Resultssupporting

confidence: 85%

Made for the job or by the job? A lab-in-the-field experiment with firefighters

Krčál

Staněk

Slanicay

2019

Research in Economics

View full text Add to dashboard Cite

A large body of evidence supports a negative association between risk aversion of workers and the level of risk they face in their occupations. This relationship could be explained by the self-selection of workers into jobs according to their risk preferences or by the effect on risk attitudes of occupations in which people face or witness dangerous situations. We use incentivized experiments to measure risk preferences among three different groups: experienced firefighters, novice firefighters, and students. We find that experienced firefighters are less riskaverse than novice firefighters, and these in turn are less risk-averse than students. The effects remain significant even after controlling for other relevant differences between these groups. Our findings suggest that the observed relationship between risk aversion and high-risk occupations is not only a result of self-selection but also of people's preferences being shaped by their work lives.Abstract A large body of evidence supports a negative association between risk aversion of workers and the level of risk they face in their occupations. This relationship could be explained by the self-selection of workers into jobs according to their risk preferences or by the effect on risk attitudes of occupations in which people face or witness dangerous situations. We use incentivized experiments to measure risk preferences among three different groups: experienced firefighters, novice firefighters, and students. We find that experienced firefighters are less risk-averse than novice firefighters, and these in turn are less risk-averse than students. The effects remain significant even after controlling for other relevant differences between these groups. Our findings suggest that the observed relationship between risk aversion and high-risk occupations is not only a result of self-selection but also of people's preferences being shaped by their work lives.

show abstract

Section: Resultssupporting

confidence: 85%

Made for the job or by the job? A lab-in-the-field experiment with firefighters

Krčál

Staněk

Slanicay

2019

Research in Economics

View full text Add to dashboard Cite

show abstract

“…Barsky et al (1997) utilized responses from hypothetical questions to anticipate real-life risky behaviors, for example holding stocks and found little impact. Generally, willingness to taking risks leads to risky behaviors (Gürdal et al, 2017). Nosić and Weber (2010) concluded that a subjective risk attitude impacts investment in shares positively as supported by Cheng et al (2018).…”

Section: Risk Attitudes and Stock Market Participationmentioning

confidence: 89%

How Investors Attitudes Shape Stock Market Participation in the Presence of Financial Self-Efficacy

et al. 2020

View full text Add to dashboard Cite

The purpose of this study is to investigate how investor's money attitudes shape their stock market participation (SMP) decisions. This study followed the theory of planned behavior (TPB), and a survey was conducted to collect the responses from active investors. Structural equation modeling (SEM) was used for the analysis of proposed relationships among the constructs, and a confirmatory factor analysis (CFA) was conducted to check the interrelation of the variables and validity of the constructs. This research has concluded that investor's money attitudes are significant to affect their stock market participation decisions. Further, it was found that risk attitudes partially mediate the relationship between money attitudes and stock market participation. Moreover, financial knowledge and financial self-efficacy positively moderated the relationship between money attitudes and stock market participation. This research is one of the early attempts at studying the money attitudes of investors and introduces financial self-efficacy as a moderating construct between money attitudes and stock market participation. The sample size for this study was 250 respondents which can be increased in future research, and the same relationships can be tested by using a larger sample. Moreover, this study has used money attitudes as predictors of stock market participation. Still, many other variables, like personal value, can also be taken to investigate their influence on stock market participation.

show abstract

“…That is, the measure of individual risk attitude was changed from the tendency to take or avoid risk across five domains (i.e., ethical, financial, health/safety, recreational, and social) to the tendency to take or avoid risk only in the financial domain (hereinafter labelled financial risk attitude). This alternative measure for individual risk attitude was proposed because there are two different notions in the literature regarding the appropriate way of measuring individual risk attitude (Weber, 2010;Maart-Noelck & Musshoff, 2014;Van Winsen et al, 2016;Gürdal, regression analysis that are used to evaluate the research hypotheses are presented in Table 2. Table 2.…”

Section: Resultsmentioning

confidence: 99%

“…With regard to the hypotheses, the first hypothesis proposed in this study (H 1 ) predicted that auditors with a smaller tendency to take risk would be more conservative when performing audit tasks. The regressions results reported in Kuzubaþ, & Saltoðlu, 2017). The first notion considers risk attitude as a stable, dispositional characteristic of an individual that is consistent across situations.…”

Section: Resultsmentioning

confidence: 99%

“…The first notion considers risk attitude as a stable, dispositional characteristic of an individual that is consistent across situations. Under this concept, the tendency to take or avoid risk is argued to develop from an individual's personality; thus, differences in individual tendencies towards risk-taking represent personality dissimilarities between individuals (Van Winsen et al, 2016;Gürdal et al, 2017). This notion provides a foundation for cross-domain measures of risk attitude such as the DOSPERT scale (Blais & Weber, 2006) that was employed in the original regression model in this study.…”

Section: Resultsmentioning

confidence: 99%

See 1 more Smart Citation

Do Individual Risk Attitudes, Experience, and Organizational Culture Influence the Conservatism of Indonesian Auditors?

Maradona

2020

Jurnal Ilmiah Akuntansi dan Bisnis

View full text Add to dashboard Cite

This study examines the effects of individual risk attitudes, professional experiences, and organizational cultures on auditor conservatism in Indonesia. On the basis of a factorial survey involving 153 auditors in three major cities in Indonesia (Jakarta, Surabaya, and Denpasar), this study finds strong evidence that, compared with others, auditors with a lower tendency to take risks and those who have less professional experience tend to be more conservative when performing audit tasks. Nonetheless, this study does not find evidence of the influence of organizational culture on auditor conservatism. Overall, the findings of this study could be of interest to professional associations, regulatory bodies, and other policymakers in Indonesia and other countries as they attempt to constrain aggressive reporting through high-quality independent audits by public accountants in their jurisdictions. Keywords: Auditor conservatism, risk attitude, experience, organisational culture, auditing standards

show abstract

Measures of individual risk attitudes and portfolio choice: Evidence from pension participants

Cited by 21 publications

References 30 publications

Made for the job or by the job? A lab-in-the-field experiment with firefighters

Made for the job or by the job? A lab-in-the-field experiment with firefighters

How Investors Attitudes Shape Stock Market Participation in the Presence of Financial Self-Efficacy

Do Individual Risk Attitudes, Experience, and Organizational Culture Influence the Conservatism of Indonesian Auditors?

Contact Info

Product

Resources

About