Cross-National Differences in Risk Preferences
(2021) BUSN09 20211Department of Business Administration
- Abstract
- Purpose: This research aimed to investigate cross-national differences in risk preferences to uncover whether risk appetite, consisting of perceived and actual risk, differs amongst demographics. This paper aims to understand whether Polish and Dutch business students differ in their risk preferences and how this impacts strategic management.
Methodology: This research adopts a non-experimental quantitative correlation research design. The data examined is collected using a cross-sectional survey that is digitally distributed to the sample population. The survey consists of questions identifying risk appetite and demographic factors through the five-point Likert scale.
Theoretical Perspectives: This study is based on contradicting... (More) - Purpose: This research aimed to investigate cross-national differences in risk preferences to uncover whether risk appetite, consisting of perceived and actual risk, differs amongst demographics. This paper aims to understand whether Polish and Dutch business students differ in their risk preferences and how this impacts strategic management.
Methodology: This research adopts a non-experimental quantitative correlation research design. The data examined is collected using a cross-sectional survey that is digitally distributed to the sample population. The survey consists of questions identifying risk appetite and demographic factors through the five-point Likert scale.
Theoretical Perspectives: This study is based on contradicting views from Damodaran (2007), Gándelman and Hernández-Murillo (2015), and Hofstede and Minkov (2010). These authors explained risk preference variations amongst nationalities. These theories are combined with Kahneman and Tversky’s (1979) prospect theory.
Empirical Foundation: The target sample are Polish and Dutch business students, as they are prospective managers representing the so-called “leaders of tomorrow.” The empirical results are derived from 186 survey responses by Polish and Dutch business students of different ages, genders, and educational levels.
Conclusion: The conclusions highlight the importance of diversifying between actual and perceived risk preferences due to a significant difference between these two variables. Furthermore, it is concluded that the differences between countries exist, and demographics affect individuals’ risk appetite, which impacts strategic management. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9052273
- author
- van Loo, Lennart Johannes Petrus LU and Marszalek, Julia LU
- supervisor
- organization
- alternative title
- A quantitative study of demographic effects on risk appetite in strategic management amongst Dutch and Polish business students.
- course
- BUSN09 20211
- year
- 2021
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- risk preferences, organizational risk, risk management, strategic management, prospect theory, culture, nationality, demographics.
- language
- English
- id
- 9052273
- date added to LUP
- 2021-06-29 10:30:19
- date last changed
- 2021-06-29 10:30:19
@misc{9052273,
abstract = {{Purpose: This research aimed to investigate cross-national differences in risk preferences to uncover whether risk appetite, consisting of perceived and actual risk, differs amongst demographics. This paper aims to understand whether Polish and Dutch business students differ in their risk preferences and how this impacts strategic management.
Methodology: This research adopts a non-experimental quantitative correlation research design. The data examined is collected using a cross-sectional survey that is digitally distributed to the sample population. The survey consists of questions identifying risk appetite and demographic factors through the five-point Likert scale.
Theoretical Perspectives: This study is based on contradicting views from Damodaran (2007), Gándelman and Hernández-Murillo (2015), and Hofstede and Minkov (2010). These authors explained risk preference variations amongst nationalities. These theories are combined with Kahneman and Tversky’s (1979) prospect theory.
Empirical Foundation: The target sample are Polish and Dutch business students, as they are prospective managers representing the so-called “leaders of tomorrow.” The empirical results are derived from 186 survey responses by Polish and Dutch business students of different ages, genders, and educational levels.
Conclusion: The conclusions highlight the importance of diversifying between actual and perceived risk preferences due to a significant difference between these two variables. Furthermore, it is concluded that the differences between countries exist, and demographics affect individuals’ risk appetite, which impacts strategic management.}},
author = {{van Loo, Lennart Johannes Petrus and Marszalek, Julia}},
language = {{eng}},
note = {{Student Paper}},
title = {{Cross-National Differences in Risk Preferences}},
year = {{2021}},
}