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Do women exhibit greater financial risk aversion than men? We answer this question using attitudinal and behavioral specifications of risk aversion drawn from the 2010 Survey of Consumer Finances (SCF). To approximate attitudinal specification of risk aversion, we use individuals’ self-reported financial risk tolerance. We use individuals’ relative risk aversion, that is, the effect of wealth on the proportion of assets categorized as risky as behavioral specification of risk aversion. We find that while women display greater attitudinal risk aversion, gender difference in behavioral risk aversion depends upon individuals’ marital status and role in household finances. Single women exhibit greater behavioral risk aversion compared to single men. However, this gender difference does not exist when we compare behavioral risk aversion of married women and men in charge of household finances.

We demonstrate in a laboratory experiment that the effectiveness of performance-contingent incentives is inversely related to risk-aversion levels. For about 16.5% of participants, performance fails to improve under performance-pay, and the probability of such failure increases with risk-aversion. This phenomenon works in part through the reduced effort level of more risk-averse individuals when effort level is positively correlated with risk exposure. It is also associated with higher self-reported levels of stress by more risk-averse people working under performance-contingent pay. We find no evidence of such stress causing decrements in the quality of effort affecting performance after controlling for effort level. However, controlling for effort, more risk-averse participants perform better under a fixed salary, leaving less room for improvement under performance-pay.

The purpose of this paper is to explore the relationship between the customer's risk aversion and its relationship with brand loyalty and to test empirically whether this relationship is mediated by brand trust and brand affect.

A randomly selected sample of Austrian mobile phone users was drawn. Their risk aversion, two forms of loyalty (attitudinal and repurchase loyalty), brand trust and brand affect have been measured with existing and tested scales. The hypothesized model has been tested using PLS (Partial least squares).

Customer's risk aversion is significantly related to the two forms of loyalty (attitudinal loyalty and brand loyalty). When brand affect and brand trust are introduced into the model, the previously highly significant relationship between domain‐specific risk aversion and attitudinal loyalty becomes insignificant and the risk aversion‐repurchase relationship becomes much weaker, while risk aversion strongly influences brand trust and brand affect.

The findings are limited to mobile phone users. The generalisation of the results could be extended by broadening the list of products, for example with other durable products and services in which brand affect and brand trust may be even more important in developing brand loyalty.

This paper explains why certain customers have more trust and experience more affect than others and how this is related to loyalty. Hence, marketers can increase brand loyalty by targeting more risk aversive customers.

From a theoretical point of view the results of this study illuminate the relationship between enduring individual differences and important brand related constructs. From a practical point of view, they explain why certain customers have more trust and experience more affect than others. It is hypothesized and demonstrated empirically that risk aversion is also related to loyalty via brand trust and brand affect.

The purpose of this paper is to investigate and test for changes in investor risk aversion and the stochastic discount factor (SDF) using options data on the West Texas Intermediate crude oil futures contract during the 2007-2011 period.

Risk aversion functions and SDFs are estimated using parametric approaches before and after four specific dates of interest. The dates are: the summer 2008 end of the bull market regime; the late 2008 credit freeze trough; the BP Deepwater Horizon explosion; and the Libyan uprising.

Absolute risk aversion functions and SDFs are significantly flatter (less decreasing in wealth) after the end of the bull market and the credit freeze trough. After these two market reversals, oil market participants were less risk-averse for low levels of wealth but more risk-averse for high wealth levels. Oil market investors also increased their valuation of anticipated future wealth in average states of nature relative to very high or very low-asset return states after reversals. The BP explosion and the Libyan uprising led to steeper risk aversion functions (decreasing more rapidly in wealth) and SDF. Oil market investors were more risk-averse for lower future wealth, but less risk-averse for higher future wealth. Oil market investors increased their valuation of anticipated future wealth in extreme states of nature relative to average states of nature after both dates.

Documenting statistically and economically significant changes in oil market investors’ attitude toward risk and inter-temporal appetite for risk in relation to changes in financial and political conditions.

Risk aversion is an important characteristic associated with family firms. Despite growing literature in recent years, a consistent picture of what we know about the risk aversion of family firms has not evolved. Thus, this paper presents a systematic overview of whether family firms are found to be more risk averse than non‐family firms, the factors influencing the risk aversion of family firms and the outcomes of risk aversion.

This paper follows the tenets of Tranfield et al. for conducting a systematic literature review. Following a keyword search and an assessment of fit for this review, 29 papers were analyzed with respect to bibliographical information, research design and findings.

Most studies find that family firms are indeed more risk‐averse than non‐family firms. However, some findings advance the notion that this phenomenon strongly depends on the situation of the family firm and that the controlling family may take irrational risks to secure control over the firm. From content analysis, five clusters of factors increasing or decreasing the risk aversion of family firms and six clusters on the outcomes of risk aversion are derived.

A broad array of potentially fruitful research directions is presented. Specifically, more qualitative research on risk aversion in family firms is needed, as well as research that takes into account the situational factors and the reactions of the financial services industry to the risk‐avoiding behavior of family firms.

This paper represents the first comprehensive literature review on risk aversion in family firms.

Degradable mulch film (DMF) is a potential alternate to polyethylene (PE) mulching. In this regard, the purpose of this paper is to explore the effects and paths of natural disaster shock and risk aversion influencing farmers’ DMF adoption.

This research is conducted by collecting cross-sectional data of corn farmers in Zhangye, China. First, by using the Tobit model, the paper attempts to explore the effects of natural disaster shock and risk aversion influencing farmers’ DMF adoption. Second, IV-Tobit model is applied to deal with endogenous problems between risk aversion and DMF adoption. Additionally, the researchers used a moderating model to analyze feasible paths of natural disaster shock and risk aversion impacting farmers’ DMF adoption.

The outcomes show that natural disaster shock and risk aversion significantly and positively affect farmers’ DMF adoption. Though risk aversion plays a significant moderating effect in influencing farmers’ DMF adoption by natural disaster shock, the moderating effect has a serious disguising effect. By considering the heterogeneity of risk aversion, the paper further confirms that if the intensity of natural disaster shock is increased by one unit, the intensity of MDF adoption by farmers with high-risk aversion also tends to increase by 15.85%.

This study is the pioneer one, which is evaluating the intensity of farmers’ DMF adoption from adoption ratio, investment amount, labor input and adoption time. Additionally, the research provides important guidelines for policymakers to motivate medium and low-risk aversion farmers to adopt DMF.

Entrepreneurial intention is regarded as a useful and practical approach to understanding actual entrepreneurial behavior. Planned behavior has been widely applied to examine entrepreneurial intention. Nevertheless, how risk aversion affects entrepreneurial intention using the model of planned behavior is not well understood. The purpose of this paper is to develop an integrated model based on planned behavior to examine the direct and indirect effect of risk aversion on entrepreneurial intention concurrently.

The paper first uses factor analysis to study the latent constructs underlying determinants of planned behavior, risk aversion, and entrepreneurial intention. Then, it applies the technique of structural equation modeling to explore relationships among latent constructs. There are 306 survey responses collected from dental school students to run the analysis.

The determinants of planned behavior are positively associated with entrepreneurial intention. There is no direct relationship between risk aversion and entrepreneurial intention. Risk aversion only indirectly reduces entrepreneurial intention through determinants of planned behavior.

The results of the integrated model may be constrained by the sample context of dental students. Replicating the model by using other samples with various educational backgrounds can strengthen the implication of the study. Another limitation is the weakness of the cross-sectional study design, leaving room for improvement by using longitudinal data in the future.

Risk aversion only indirectly reduces entrepreneurial intention. To establish an environment with a strong entrepreneurial intention, a focus on developing a positive attitude and strengthening entrepreneurial skills are perhaps more fruitful than lowering risk aversion. This study also suggests that non-business students may need additional business education to improve the perception of self-efficacy.

The integrated model of this paper is original. The development of the model draws support from planned behavior adjusted to the context of starting a business.

Risk aversion is considered as an important factor in predicting asset prices. Many studies have proved that there exists important price information spillover among crude oil, precious metals and agricultural markets. Then there naturally follows the question: Is the risk aversion of investors in crude oil market predictable for the returns of precious metals and agricultural products? The purpose of this paper is to answer this question. For this reason, the authors explore the directional predictability and the cross-quantile dependence between risk aversion of crude oil market investors and returns of precious metals and agricultural products.

To better describe the risk aversion of investors, this paper uses high-frequency data and model-free calculation method to obtain variance risk premium of crude oil. Then, this paper uses the cross-quantilogram method to investigate the directional predictability and cross-quantile dependence between risk aversion of crude oil market investors and returns of precious metals and agricultural products. Meanwhile, it employs the partial cross-quantilogram (PCQ) method to test the impact of control variables on the empirical results.

Firstly, risk aversion of crude oil market investors has directional predictability for returns of precious metals and agricultural products. Secondly, different degrees of risk aversion of crude oil market investors have different impacts on returns of precious metals and agricultural products. A low (high) degree of crude oil market investors' risk aversion has negative (positive) predictability for returns of precious metals and agricultural products. Finally, during the sample period, the returns of precious metals are more affected by risk aversion of crude oil market investors than returns of agricultural products.

First of all, this paper studies the impact of risk aversion of crude oil market investors on returns of precious metals and agricultural products. It updates previous relevant studies on the factors influencing the prices of precious metals and agricultural products, and provides a new idea for the forecast of those commodity returns. Secondly, this paper provides the evidence that different degrees of risk aversion of investors have different effects on the returns of commodities, and expands the research on the topic of commodity returns prediction. Finally, high-frequency data are employed in this paper to better capture the risk aversion of investors than commonly used daily data.

The purpose of this paper is to investigate the relationships between clinicians’ and managers’ risk aversion and a range of variables related to the implementation of the Collaborative Recovery Model (CRM). Positive risk taking is an integral component of the recovery process. Clinicians’ risk aversion has the potential to negatively impact on their implementation of recovery-oriented practices. The CRM provides an evidence-based framework to assist consumers to participate in the recovery process. However, there is a need for research to clarify the factors related to recovery that have impact on managers’ and clinicians’ risk aversion, and ultimately on implementation of recovery practices.

A cross-sectional survey assessed clinicians’ (n=174) and managers’ (n=48) risk aversion and their self-reported learning experiences, commitment to using CRM, goal setting attitudes and CRM implementation behaviour.

Clinicians who reported more risk aversion were significantly more likely to report positive attitudes towards goal setting. Stepwise regression revealed that training experiences, goal setting attitudes and commitment to CRM significantly predicted an increase in CRM implementation. Over and above this, risk aversion predicted a small but significant increase in the self-reported use of CRM. Managers experienced significantly less risk aversion than clinicians, with a negative relationship between risk aversion and commitment to CRM principles.

This paper suggests that clinicians’ risk aversion impacts upon their implementation of the CRM, with managers less risk averse than clinicians.

This paper aims to examine the effects of subjective and financial literacy, big five personality traits and emotions (fear, anger, hope and sadness) on risk aversion, risky investment intention and investment choices were investigated. Interactions of these three variables (risk aversion, risky investment intention and investment choices) were also examined.

For this purpose, in January-February 2019, collected data on 446 subjects from Turkey using the internet (341) and face-to-face (105) survey instruments. The authors exploited IBM SPSS Statistics for analysis. ANOVA, t-test and discriminant analysis were performed.

As a result of the analyzes, two personality traits (neuroticism and openness) and two emotions (fear and sadness) were determined as predictors of risk aversion. For risky investment intention, risk aversion, two personality traits (neuroticism and openness) and one of the same and other one different two emotions (fear and anger) were found.

Investment choices can be estimated by objective financial literature, risk aversion and risky investment intention. In addition, individuals’ risk averse or risk taking characteristics differ according to their level of sadness with agreeableness, conscientiousness and neuroticism personality traits. Similarly, have a risky investment intention or have not risky investment intention also differs according to sadness emotions with conscientiousness and openness. Finally, the choice of stocks or bank deposits varies according to subjective financial literacy and extraversion personality trait.