Accession Number:

ADA089727

Title:

Managerial Risk Preferences for Below-Target Returns.

Descriptive Note:

Technical rept.,

Corporate Author:

DUKE UNIV DURHAM NC GRADUATE SCHOOL OF BUSINESS ADMINISTRATION

Report Date:

1980-08-01

Pagination or Media Count:

30.0

Abstract:

This paper reports on the risk preferences for below-target returns of 224 Managers from the U.S., Canada, and Europe. When only non-ruinous losses were involved, 71 of the managers were risk-seeking for below-target returns. The distribution of risk preferences tended to be stable over a wide range of experimental conditions diversity of background of the managers, the size of outcomes below target, and the context of the decision process personal versus managerial. When ruinous losses were introduced for 75 of the managers, 64 switched to risk adverse behavior. Empirical findings concerning the relationship between risk preferences for below target returns and several demographic characteristics of managers are also reported. Author

Subject Categories:

  • Administration and Management
  • Psychology

Distribution Statement:

APPROVED FOR PUBLIC RELEASE