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Risk Preferences of Management Generations

Gier, Jonas LU and Witt, Anton LU (2019) BUSN09 20191
Department of Business Administration
Abstract
Purpose: The purpose of this paper is to examine the risk preferences of current and future management generations and its implications for strategic management.
Methodology: A quantitative research strategy has been chosen in order to fulfil the purpose of this study. The data collection has been gathered primarily through surveys and complementing secondary data. Subsequently, the gathered data has been analysed applying a deductive approach by using concepts of pattern matching and explanation building based on existing macroeconomic trends and literature.
Theoretical perspectives: The theoretical foundation of this study is based on Kahneman and Tversky’s (1979) Prospect Theory. The theory postulates that individuals evaluate... (More)
Purpose: The purpose of this paper is to examine the risk preferences of current and future management generations and its implications for strategic management.
Methodology: A quantitative research strategy has been chosen in order to fulfil the purpose of this study. The data collection has been gathered primarily through surveys and complementing secondary data. Subsequently, the gathered data has been analysed applying a deductive approach by using concepts of pattern matching and explanation building based on existing macroeconomic trends and literature.
Theoretical perspectives: The theoretical foundation of this study is based on Kahneman and Tversky’s (1979) Prospect Theory. The theory postulates that individuals evaluate choices between alternative prospects based on perceived gains or losses in respect to a certain reference point, rather than to net asset levels. The framework is further set into context to the concept of risk.
Empirical results: The empirical results presented originate from 155 surveys completed by people of different age, gender, educational background and managerial experience.
Conclusions: We discover that male millennials are significantly more risk tolerant than any other generation-gender combination. Thus, our results suggest that not only age but also other characteristics such as gender, education and experience are attributable to certain risk preference tendencies. Our empirical results serve as the basis for the composition of top management teams and for systematically influencing managerial risk behaviour in order to effectively managing uncertainties and generating competitive advantages as a firm. (Less)
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author
Gier, Jonas LU and Witt, Anton LU
supervisor
organization
alternative title
AN EMPIRICAL ANALYSIS OF RISK BEHAVIOUR AND ITS IMPLICATIONS ON STRATEGIC MANAGEMENT
course
BUSN09 20191
year
type
H1 - Master's Degree (One Year)
subject
keywords
Risk Preferences, Generation X, Millennials, Generation Z, Risk Attributes, Risk-Taking, Strategic Management, Prospect Theory, Organizational Risk, Decision-making Under Risk
language
English
id
8984992
date added to LUP
2019-06-27 15:33:03
date last changed
2019-06-27 15:33:03
@misc{8984992,
  abstract     = {Purpose: The purpose of this paper is to examine the risk preferences of current and future management generations and its implications for strategic management. 
Methodology: A quantitative research strategy has been chosen in order to fulfil the purpose of this study. The data collection has been gathered primarily through surveys and complementing secondary data. Subsequently, the gathered data has been analysed applying a deductive approach by using concepts of pattern matching and explanation building based on existing macroeconomic trends and literature. 
Theoretical perspectives: The theoretical foundation of this study is based on Kahneman and Tversky’s (1979) Prospect Theory. The theory postulates that individuals evaluate choices between alternative prospects based on perceived gains or losses in respect to a certain reference point, rather than to net asset levels. The framework is further set into context to the concept of risk. 
Empirical results: The empirical results presented originate from 155 surveys completed by people of different age, gender, educational background and managerial experience. 
Conclusions: We discover that male millennials are significantly more risk tolerant than any other generation-gender combination. Thus, our results suggest that not only age but also other characteristics such as gender, education and experience are attributable to certain risk preference tendencies. Our empirical results serve as the basis for the composition of top management teams and for systematically influencing managerial risk behaviour in order to effectively managing uncertainties and generating competitive advantages as a firm.},
  author       = {Gier, Jonas and Witt, Anton},
  keyword      = {Risk Preferences,Generation X,Millennials,Generation Z,Risk Attributes,Risk-Taking,Strategic Management,Prospect Theory,Organizational Risk,Decision-making Under Risk},
  language     = {eng},
  note         = {Student Paper},
  title        = {Risk Preferences of Management Generations},
  year         = {2019},
}