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Article
Publication date: 29 May 2020

Alessandro Bucciol, Federico Guerrero and Dimitra Papadovasilaki

The purpose of this paper is to study the relationship between financial risk-taking and trait emotional intelligence (EI).

Abstract

Purpose

The purpose of this paper is to study the relationship between financial risk-taking and trait emotional intelligence (EI).

Design/methodology/approach

An incentivized online survey was conducted to collect the data, including measurements for cognitive ability and socio-demographic characteristics.

Findings

There is a positive correlation between trait EI and financial risk-taking that is at least as large as that between risk-taking and measures of cognitive control (CRT). Trait EI is a key determinant of risk-taking. However, not all components of trait EI play an identical role. In fact, we observe positive effects of well-being, mainly driven by males and sociability. Self-control seems to matter only for males.

Research implications/limitations

This study suffers from the bias of self-reported answers, a common limitation of all survey studies.

Practical implications

This evidence provides a noncognitive explanation for the typically observed heterogeneity of financial risk-taking, in addition to more established explanations linked to cognitive skills. Investor profiles should be also determined on their trait EI.

Social implications

Governments should start programs meant to improve the level of trait EI to ameliorate individual wealth outcomes. Female investors participation in the financial markets might increase by fostering their sociability.

Originality/value

The relationship between trait EI and each of its components with financial risk-taking is vastly unexplored, while it is the first time that gender effects are discussed in that set up.

Details

Review of Behavioral Finance, vol. 13 no. 3
Type: Research Article
ISSN: 1940-5979

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Article
Publication date: 10 July 2017

Rattaphon Wuthisatian, Federico Guerrero and James Sundali

The purpose of this paper is to suggest that a fundamental cause of market booms and busts is that investor risk attitudes change during market booms. Specifically, the…

Abstract

Purpose

The purpose of this paper is to suggest that a fundamental cause of market booms and busts is that investor risk attitudes change during market booms. Specifically, the authors propose that an investor’s risk aversion falls as (s)he attempts to “keep up with the Joneses.” This paper studies changing risk attitudes induced by social interactions, and shows that risk-seeking behavior that is initially successful may induce copycat behavior and lead individuals in the same peer group to reduce their degree of risk aversion to attempt to obtain similar rewards, a phenomenon we call “Gain attraction in the presence of social interactions.”

Design/methodology/approach

The authors propose a new theoretical model that incorporates the social interaction term into the value function of prospect theory. The modified value function empowers the standard prospect theory by introducing the idea that people often compare themselves to others and then compare their gains to the gains of others. The model predicts that, if people exhibit some degree of envy, they will treat the observed utility achieved by others as destination points and will reposition themselves to the new reference points, and at that point their willingness to accept risk dramatically increases.

Findings

The theoretical model is tested empirically against experimental data and survey data. Consistent with the theoretical prediction, the experimental results suggest that, after subjects observed the behavior of the leading investor in the controlled laboratory condition, there was a significant increase in risk-taking behavior. The survey results further confirm that envy is an emotional force behind the dissatisfaction and disappointment among investors when they miss available opportunities that others were able to take advantage of.

Originality/value

This study provides evidence that investment decisions are not made in a social vacuum by isolated individuals, but rather in social settings in which individuals are influenced by the actions and outcomes of their peers. The study also opens up a new research avenue that the reduction in risk aversion induced by peer effects may be an important element explaining how greed is transmitted across the economy during times of financial boom, thus helping to fuel the flames of financial crises.

Details

Review of Behavioral Finance, vol. 9 no. 2
Type: Research Article
ISSN: 1940-5979

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Article
Publication date: 1 January 2006

Edgardo Demaestri and Federico Guerrero

Aims to review the potential risks associated with the separation of banking regulation from the orbit of the central bank in Latin‐American and Caribbean countries (LAC).

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591

Abstract

Purpose

Aims to review the potential risks associated with the separation of banking regulation from the orbit of the central bank in Latin‐American and Caribbean countries (LAC).

Design/methodology/approach

Sets out information on the banking regulators in LAC and on the current degree of involvement of the central bank in banking regulation; the main monetary policy issues connected to the separation of banking regulation from the central bank; and the main banking regulation issues involved.

Findings

The separation of banking regulation from the central bank would not present any great danger to LAC currently. However, the need to conduct the move in accordance with best principles must be emphasized.

Originality/value

Given the fertile ground offered by the countries of LAC, this paper presents arguably the most comprehensive examination to date of this “hot potato”.

Details

Journal of Financial Regulation and Compliance, vol. 14 no. 1
Type: Research Article
ISSN: 1358-1988

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Article
Publication date: 8 June 2015

Dimitra Papadovasilaki, Federico Guerrero, James Sundali and Gregory Stone

– The purpose of this paper is to examine the influence of early investment experiences on subsequent portfolio allocation decisions in a laboratory setting.

Abstract

Purpose

The purpose of this paper is to examine the influence of early investment experiences on subsequent portfolio allocation decisions in a laboratory setting.

Design/methodology/approach

In an experiment in which the task consisted of allocating a portfolio between a risky and riskless asset for 20 periods, two groups of subjects were confronted with either a market boom or bust in the initial four periods.

Findings

The findings suggest that after controlling for demographic characteristics, the timing of a boom or bust during the investment lifecycle matters greatly. Subjects that faced a bust early in their investment lifecycle held less of the risky asset in subsequent periods compared to subjects who experienced an early boom.

Originality/value

To the best of the authors knowledge this is the first laboratory study investigating the role of early aggregate shocks on subsequent investment behavior.

Details

Managerial Finance, vol. 41 no. 6
Type: Research Article
ISSN: 0307-4358

Keywords

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Article
Publication date: 21 September 2012

James A. Sundali, Gregory R. Stone and Federico L. Guerrero

The purpose of this paper is to conduct a controlled experiment to examine the effect of goal setting and affect framed feedback on repeated asset allocation investment decisions.

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1531

Abstract

Purpose

The purpose of this paper is to conduct a controlled experiment to examine the effect of goal setting and affect framed feedback on repeated asset allocation investment decisions.

Design/methodology/approach

The design of the experiment is a 2×2 between subject design. Subjects allocated monies among four investments for 20 periods. One manipulation varied whether subjects received performance feedback in the form of a happy or sad face, while another manipulation varied whether subjects set a financial goal for themselves and received goal attainment performance feedback.

Findings

The main findings include: subjects initially allocate assets in a manner roughly consistent with their stated preference for risk; prior year asset performance leads subjects to make significant changes in portfolio asset allocation in a manner consistent with beliefs of positive autocorrelation in asset returns; and the addition of happy or sad faces to performance feedback information leads to even greater changes in asset allocation.

Originality/value

Using ideas from the theory on the self‐regulation of behavior and the role of affect in decision making, the authors develop an original framework to account for the results.

Details

Managerial Finance, vol. 38 no. 11
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 1 December 2020

Pierluigi Rippa, Giovanni Landi, Silvia Cosimato, Lorenzo Turriziani and Mohamed Gheith

Over the last decades, the importance of entrepreneurial education (EE) for the personal development of young generations has gained momentum among policymakers…

Abstract

Purpose

Over the last decades, the importance of entrepreneurial education (EE) for the personal development of young generations has gained momentum among policymakers, practitioners and scholars. This paper offers some insights into the way T-shaped PhD programs can trigger transdisciplinary abilities of STEM students, making them even more ready toward venturing activities.

Design/methodology/approach

To achieve the purpose of the study, the effectiveness of a new T-shaped doctoral model was explored, testing it on a sample of STEM PhD students at Polytechnic School of University of Naples Federico II, using a qualitative-quantitative approach.

Findings

The results prove the positive influence that the T-shaped PhD program has on students in terms of vertical skills and horizontal capabilities attainment for entrepreneurial readiness.

Practical implications

This study advances interesting managerial and policy implications for activating virtuous collaborations to better respond to the need of current socioeconomic scenarios through academic knowledge.

Originality/value

Despite the growing relevance of EE, research about its influence at PhD level and the effect of different pedagogical methods remains scarce and controversial. Thus, this research explores if EE can support PhD students in science and technology transdisciplinarity terms of innovation management.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

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Article
Publication date: 19 June 2019

Piera Centobelli, Roberto Cerchione, Emilio Esposito and Shashi Shashi

The modern knowledge-based economy acknowledges the role of the third mission of universities related to the process of knowledge transfer as a driving force to face…

Abstract

Purpose

The modern knowledge-based economy acknowledges the role of the third mission of universities related to the process of knowledge transfer as a driving force to face sustainability issues, in addition to the two traditional missions focusing on research and teaching. The purpose of this paper is to investigate the relationships between internal environment, external environment, knowledge exploitation, knowledge exploration and university performance.

Design/methodology/approach

This study applies confirmatory factor analysis and structural equation modelling to test the conceptual model in the Chinese education system.

Findings

The findings confirm the higher impact of internal environment on both knowledge exploitation and knowledge exploration as compared to external environment. Knowledge exploitation is more strongly related to university performance than knowledge exploration. These results highlight the imperative role of internal university stakeholders in fostering knowledge management strategies. In addition, they encourage academicians, practitioners and policy makers to focus their attention on the impact of knowledge management models, tools and practices in universities to achieve the entrepreneurial development which, in turn, has a positive impact on individual graduates and innovation ecosystems.

Originality/value

The necessity to develop a more entrepreneurial university, as well as the lack of evidence of their development in emerging countries, highlights the need to investigate how specific factors and knowledge management processes are impacting the universities’ performance. In fact, although previous studies provide an explanation of the impact of internal and external factors on a university’s performance, contributions integrating these concepts with strategic knowledge management processes are still lacking.

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Book part
Publication date: 1 June 2018

M. José González, Irene Lapuerta, Teresa Martín-García and Marta Seiz

Using data from a qualitative longitudinal sample of 31 non-traditional fathers-to-be interviewed in 2011 and then again in 2013, when the child was about 18 months old…

Abstract

Using data from a qualitative longitudinal sample of 31 non-traditional fathers-to-be interviewed in 2011 and then again in 2013, when the child was about 18 months old, we examine the relationship between prenatal anticipation and the development of ‘positive paternal involvement’ (i.e. an engaged, accessible and responsible type of fatherhood). We expect differences with regard to the antenatal development of a non-normative father identity to explain variations in subsequent paternal involvement. While there might be – and there often is – a discrepancy between fathers’ prenatal intentions and actual practices after childbirth, anticipating concrete needs and actively foreseeing particular paid work adaptations favour the development of a positive paternal involvement. Our analysis reveals the importance of anticipation during pregnancy – that is, the development of an identity as a father and of explicit plans for employment adaptations – in facilitating men’s greater implication in care. The empirical findings also show that non-traditional gender attitudes and favourable working conditions facilitate fathers’ involvement, yet are not enough in themselves to guarantee the development of a positive type of fatherhood covering the three noted dimensions of care. Achieving the latter in Spain will likely require the encouragement of shared parenting responsibilities through normative changes in workplaces, the revision of parental leave policies and the integration of fathers-to-be in prenatal education classes. Our research contributes to shedding new light on the elements that favour a positive paternal involvement, which has the potential to enhance both children’s well-being and gender equality.

Details

Fathers, Childcare and Work: Cultures, Practices and Policies
Type: Book
ISBN: 978-1-78743-042-6

Keywords

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Article
Publication date: 2 September 2013

Zuzanna Pieniak, Federico Perez-Cueto and Wim Verbeke

The aim of the study is to analyse whether self-identifying as a traditional food consumer is associated with obesity or overweight, and to investigate the motives for…

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1241

Abstract

Purpose

The aim of the study is to analyse whether self-identifying as a traditional food consumer is associated with obesity or overweight, and to investigate the motives for consuming traditional food among people with normal weight, overweight and obesity.

Design/methodology/approach

Cross-sectional data were collected through a pan-European consumer survey (n=4,828) with samples representative for age, gender and region in Belgium, France, Italy, Norway, Poland and Spain. Data analyses included multivariate logistic regressions and a multi-group structural equation modelling analysis.

Findings

Individuals with overweight or obesity attach more importance to weight control when purchasing food, and tend to self-identify themselves more as consumers of traditional foods. Among individuals with obesity, importance attached to the natural content of food is directly associated with traditional food consumption, and importance attached to sensory appeal in food choice is indirectly associated with self-identification as a traditional food consumer. Among individuals with normal weight, importance attached to healthiness in food choice associates negatively with self-identification as a traditional food consumer.

Originality/value

This study provides a unique approach for testing the motives for consuming traditional food among people with different nutritional status, particularly with normal weight, overweight and obesity. The strength of this paper pertains further to its international scope and large representative data set.

Details

British Food Journal, vol. 115 no. 9
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 29 April 2021

Giuseppe Di Vita, Carla Cavallo, Teresa Del Giudice, Raffaella Pergamo, Gianni Cicia and Mario D'Amico

Recently, several regional protected geographical indications (PGI) have been introduced in Italy for extra virgin olive oil (EVOO) with the aim of coping with the…

Abstract

Purpose

Recently, several regional protected geographical indications (PGI) have been introduced in Italy for extra virgin olive oil (EVOO) with the aim of coping with the substantial failure of protected designations of origin (PDO). This study aims to identify which characteristics consumers expect, in order to anticipate the market success.

Design/methodology/approach

In this study, a survey has been used on a sample of consumers from Sicily, one of the first regions which recently developed a regional PGI for EVOO. Data have been analyzed with a rank-ordered logit model.

Findings

Results yielded that consumers would accept this new product and their expectations correspond to a product with attributes such as: green color, not filtered, not with a sweet taste and with a known brand. A possible target can be represented by young men.

Practical implications

The results obtained anticipate whether this product would be accepted and provides direct indications for producers who wish to enter the market with a PGI EVOO.

Originality/value

This work focuses on consumer behavior toward products that are specifically certified with a recently introduced PGI label, and they still are not so common on the market.

Details

British Food Journal, vol. 123 no. 12
Type: Research Article
ISSN: 0007-070X

Keywords

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