Risk aversion in crop insurance program purchase decisions

2017 ◽  
Vol 9 (1) ◽  
pp. 62-80 ◽  
Author(s):  
Kaiyu Lyu ◽  
Thomas J. Barré
Keyword(s):  
Risk Aversion ◽  
Crop Insurance ◽  
Probit Model ◽  
Data Sets ◽  
Purchase Decisions ◽  
Cross Sectional ◽  
Maize Production ◽  
Content Type ◽  
Interaction Terms

Purpose The purpose of this paper is to contribute to the aforementioned literature on the linkage between economic activity and human preference by estimating the cross-sectional determinants of farmers’ participation in participation in crop insurance programs (CIPs) and identifying the impediments preventing the remaining farmers from participating. Design/methodology/approach Using the unique data sets of risk preference experiments and maize producer surveys pertaining to the maize production areas of China, this paper explores the determinants of farmers’ CIPs and scrutinizes the role of risk aversion in farmers’ CIP purchase decisions under the expected utility maximization framework. And a “non-zero threshold probit model” is used for the analysis. Findings The results show that risk aversion plays an important role in CIP purchase decision-making, not only in the form of its direct effect but also with regard to the interaction term and expected loss. Furthermore, if the insured amount is high enough, then risk aversion will no longer affect insurance purchase. Additionally, purchase experience, CIP environment (village purchase ratio), and contract items (insured amounts) are significant determinates in these decisions. There is no significant evidence to suggest that serious adverse selection exists in the sampling areas. Originality/value One theoretical model is established which considered not only general variables like farmers’ production and household information, but also conditions and terms in the insurance policies. The unique experimental method is used to measure farmers’ risk aversion. Both the role of risk aversion and its’ interaction terms with others in CIP participation are scrutinized to identify complicated influences under the context of real society.

Do Farmers Value Insurance Against Extreme Droughts and Floods? Evidence from Odisha, India

2020 ◽  
pp. 097215092095761
Author(s):  
Asis Kumar Senapati
Keyword(s):  
Risk Aversion ◽  
Crop Insurance ◽  
Management Strategies ◽  
Probit Model ◽  
Insurance Companies ◽  
Agricultural Insurance ◽  
Insurance Product ◽  
Risk Management Strategies ◽  
Willingness To Purchase

Crop insurance provides farmers with financial support and coverage in the event of extreme natural disasters. Despite more than two decades of disseminating the knowledge in India, crop insurance adoption rates remain low with evidence of dis-adoption. This article assesses farm households’ willingness to insure their crops as well as ability to pay for an insurance product designed to help rural Indian farmers manage flood- and drought-associated risks. The objective of this study is to assess the determinants of farmers’ participation in market-based agricultural insurance living in coastal and rainfed areas prone to risky weather. It is hypothesized that crop insurance would lead to less risk-averse behaviour and more efficient use of farm resources. Using probit model, the study highlights several determinants of willingness to insure and empirically verify the role of risk aversion in insurance purchase decisions. The lottery-choice experiment has been applied by the author for evaluating risk attitudes of sample household. Empirical results suggest that as regards farmers’ risk preferences, risk aversion actually plays an important role even though not directly but in interactive terms with expected losses which, in turn, significantly influencing farmers’ willingness to purchase the insurance product. The study underlines significant influence of insurance history on future crop insurance choice decision. Farmers’ insurance purchase history can help insurance companies, in order to devise effective crop insurance programmes in the future. Similarly, the study also foregrounds the significant role of insured amount in insurance contracts, influencing farmers’ crop insurance purchase decision in both rainfed and irrigated regions. It can therefore help insurance companies to revise the contract items or reform the existing subsidies. Finally, the study goes on to recommend the importance of the knowledge of informal risk management strategies followed by farmers before offering them the formal insurance product and the necessity of the insurance companies in understanding the farmers’ behaviour while designing the insurance product.

Crime, corruption and the role of institutions

2014 ◽  
Vol 7 (1) ◽  
pp. 73-95 ◽  
Author(s):  
Ishita Chatterjee ◽  
Ranjan Ray
Keyword(s):  
Negative Impact ◽  
Probit Model ◽  
Data Sets ◽  
Older Individuals ◽  
Crime Victim ◽  
Data Set ◽  
Content Type ◽  
Country Level ◽  
Level Data

Purpose – There have been very few attempts in the economics literature to empirically study the link between criminal and corrupt behaviour due to lack of data sets on simultaneous information on both types of illegitimate activities. The paper aims to discuss these issues. Design/methodology/approach – The present study uses a large cross-country data set containing individual responses to questions on crime and corruption along with information on the respondents' characteristics. These micro-level data are supplemented by country-level macro and institutional indicators. A methodological contribution of this study is the estimation of an ordered probit model based on outcomes defined as combinations of crime and bribe victimisation. Findings – The authors find that: a crime victim is more likely to face bribe demands, males are more likely victims of corruption while females are of serious crime, older individuals and those living in the smaller towns are less exposed to crime and corruption, increasing levels of income and education increase the likelihood of crime and bribe victimisation to be reported and a stronger legal system and a happier society reduce both crime and corruption. However, the authors find no evidence of a strong and uniformly negative impact of either crime or corruption on a country's growth rate. Originality/value – This paper is, to the authors' knowledge, the first in the literature to explore the nexus between crime and corruption, their magnitudes, determinants and their effects on growth rates.

scholarly journals The value of values in business purchase decisions

2020 ◽  
Vol 35 (8) ◽  
pp. 1323-1334 ◽  
Author(s):  
Ehtisham Anwer ◽  
Sameer Deshpande ◽  
Robbin Derry ◽  
Debra Z. Basil
Keyword(s):  
Risk Aversion ◽  
Positive Relationship ◽  
Theoretical Framework ◽  
Actual Behavior ◽  
Purchase Decisions ◽  
Convenience Sample ◽  
Content Type ◽  
Values Congruency ◽  
Buying Organizations

Purpose The purpose of this study is to develop and test a theoretical framework to examine business purchase decisions using the concept of “values” (personal values (PV), organizational values (OV) and values-congruency). Design/methodology/approach The data for the study were collected from members of the Supply Chain Management Association of Canada. The relationships between perceived PV/OV/ values-congruency (IVs) and perceived role values played in business purchase decisions (DV) were hypothesized. Three factors, namely, humanity, bottomline and convention were identified using exploratory factor analysis. The hypotheses were tested using polynomial regression, which is a preferred method for measuring congruency or fit (Edwards, 1994). Findings Perceived humanity (humaneness or benevolence) values of an organization were found to have a positive relationship with the perceived role that humanity and convention (risk aversion or compliance) values played in business purchase decisions. Perceived purchase function formalization within buying organizations was also found to have a positive relationship with the perceived role of humanity, bottomline and convention values played in business purchase decisions. Research limitations/implications The study drew a relatively small convenience sample from a single industry association/country with a low response rate. It used the perceived role of values instead of behavioral intention or actual behavior to measure business purchasing behavior. McDonald and Gandz’s (1991; 1993) list of values may be more suitable to measure OV than PV. The study only considered the buyer side of purchase decisions and values to have positive characteristics. Practical implications Buying organizations may consider formalizing their purchase functions, clarifying their humaneness/benevolence and risk aversion/compliance values to their employees and vendors and incorporating them in the purchasing criteria/process. Similarly, selling organizations may benefit from considering these values of customers to position their products and services for better sales outcomes and business relationships. Originality/value The study explores the role of values in business purchase contexts by proposing and testing a theoretical framework. The study has implications for practitioners and academics in the field and identifies several areas for future research.

Categorization flexibility and unconventional choices: is life an adventure?

2020 ◽  
Vol 54 (8) ◽  
pp. 1963-1986
Author(s):  
Tilottama G. Chowdhury ◽  
Feisal Murshed
Keyword(s):  
Interactive Effect ◽  
Interactive Effects ◽  
Cognitive Capacity ◽  
Purchase Behavior ◽  
Consumer Decision Making ◽  
Cross Sectional ◽  
Content Type ◽  
Cross Domain ◽  
Multiple Domains

Purpose This paper proposes that categorization flexibility, operationalized as the cognitive capacity that cross-categorizes products in multiple situational categories across multiple domains, might favorably influence a consumer’s evaluation of unconventional options. Design/methodology/approach Experimental research design is used to test the theory. An exploratory study first establishes the effect of categorization flexibility in a non-food domain. Study 1 documents the moderating role of decision domain, showing that the effect works only under low- (vs high-) consequence domain. Studies 2A and 2B further refine the notion by showing that individuals can be primed in a relatively higher categorization flexibility frame of mind. Study 3 demonstrates the interactive effect of categorization flexibility and adventure priming in a high-consequence domain. Study 4 integrates the interactive effects of decisions with low- vs high-consequence, adventure priming and categorization flexibility within a single decision domain of high consequence. Findings Consumers with higher- (vs lower-) categorization flexibility tend to opt for unconventional choices when the decision domain entails low consequences, whereas such a result does not hold under decision domain of high consequences. The categorization flexibility effects in case of low-consequence decision domain holds true even when consumers are primed to be categorization flexible. Furthermore, with additional adventure priming, consumers show an increased preference for unconventional options even under a decision domain with high consequence. Research limitations/implications This study could not examine real purchase behavior as results are based on cross-sectional, behavioral intention data. In addition, it did not examine the underlying reason for presence of cross-domain categorization flexibility index. Practical implications The results suggest that stimuli may be tailored to consumers in ways that increase the salience and the perceived attractiveness of unconventional choices. Further, data reinforce the notion of cross-categorical interrelations among different domains, which could be leveraged by marketers. Originality/value This study represents the first documentation of the potential ways by which unconventional product choice might be a function of individuals’ categorization flexibility level across different types of decision domains. The findings yield implications that are novel to both categorization and consumer decision-making literature.

Cognitive and affective predictors of occupational stress and job performance: the role of perceived organizational support and work engagement

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ana Junça Silva ◽  
Cannanda Lopes
Keyword(s):  
Job Performance ◽  
Occupational Stress ◽  
Work Engagement ◽  
Organizational Support ◽  
Perceived Organizational Support ◽  
Mediating Effect ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type

PurposeThis study aimed to (1) analyze whether the perceived organizational support (POS) was a significant predictor of performance and stress and (2) explore the mediating role of engagement in these relations.Design/methodology/approachTo test the hypotheses, the authors collected data with 200 working adults in a mandatory quarantine due to COVID-19 pandemic crisis.FindingsThe results showed that the POS contributed to increase engagement, and consequently, job performance. These relations also proved to be significant for stress, because when the POS increased, the work engagement also increased, and as a result decreased occupational stress.Research limitations/implicationsThis study relied on a cross-sectional design. Therefore, future research should consider a daily design to replicate this study and analyze daily fluctuations. Overall, the authors can conclude that work engagement is an affective process through which POS decreases stress and increases performance.Originality/valueThis study tests the mediating effect of work engagement on the link between POS, stress and performance, and its theoretical and practical implications of these findings are discussed.

Person–job fit and job involvement: the curvilinear effect and the moderating role of goal orientation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dong Ju ◽  
Jingjing Yao ◽  
Li Ma
Keyword(s):  
Goal Orientation ◽  
Job Involvement ◽  
Job Fit ◽  
Performance Goal ◽  
Cross Sectional ◽  
Content Type ◽  
Learning Goal Orientation ◽  
Cross Sectional Design ◽  
Employee Needs

PurposeJob involvement is an important predictor of how well employees perform and feel at work. However, despite fruitful findings, little is known about how person–job (P–J) fit affects job involvement.Design/methodology/approachThis study used a cross-sectional design and collected data from 375 employees and 50 managers. Multivariate regression was applied to test the moderated curvilinear model.FindingsThis study found an inverted U-shaped relationship between P–J fit and job involvement. For employees with a strong performance goal orientation, maximum job involvement occurred at a higher level of P–J fit, whereas for employees with a strong learning goal orientation, maximum job involvement occurred at a moderate level of P–J fit.Practical implicationsManagers should be aware that solely maximizing fit may not constantly yield positive outcomes, and that ignoring differences in employee needs and goals may be counterproductive.Originality/valueThe study challenges the conventional wisdom that a high P–J fit is always productive by showing that a high fit may sometimes jeopardize job involvement, particularly for certain employees.

State legitimacy and tax compliance among small and medium scale enterprises: a case study of Dodowa district, Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abraham Gyamfi Ababio ◽  
Arthur Gnonsio Mangueye
Keyword(s):  
Sample Selection ◽  
Tax Compliance ◽  
Probit Model ◽  
Content Type ◽  
Medium Scale ◽  
State Legitimacy ◽  
Negative Effect ◽  
Sizable Proportion

Purpose Improving tax compliance would drive the needed development in Ghana. Small and medium scale enterprises (SME) constitute a sizable proportion of the Ghanaian economy but its contribution to tax revenue is below expectation. This study aims to determine whether SME's perception of state legitimacy affects tax compliance. Design/methodology/approach A structured questionnaire was administered to 200 SMEs randomly drawn from Dodowa in the Shai-Osudoku District of Greater Accra Region. Descriptive statistics and the Probit model with sample selection were used to analyse the data. Findings The study found that SME's perception of government legitimacy exerts a significant negative effect on reducing profit to avoid tax liability (ß = −0.0305, p < 0.05). Other factors such as education and fear of fines and penalties were also found to reduce the likelihood that the firm would reduce profit to avoid high tax liability. Still, tax knowledge had a positive effect on this behaviour. Practical implications This study would help deepen policymakers' knowledge of how to improve tax compliance among SMEs in Ghana. Originality/value The originality of this work is that it explicitly models the role of fiscal exchange theory in explaining tax compliance among SMEs in Ghana by using robust methodology.

The role of rash-impulsivity, emotional dysregulation and reward drive in comorbid disordered eating and substance use disorders

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Natalie Merinuk ◽  
Stephanie C. Varcoe ◽  
Peter J. Kelly ◽  
Laura D. Robinson
Keyword(s):  
Substance Use ◽  
Disordered Eating ◽  
Psychological Factors ◽  
Emotional Dysregulation ◽  
Self Report ◽  
Eating Behaviours ◽  
Cross Sectional ◽  
Content Type ◽  
The Relationship

Purpose Substance use disorder (SUD) frequently co-occurs with other psychological conditions, such as eating disorders (EDs). Psychological factors such as emotional dysregulation, rash impulsivity (RI) and reward sensitivity (RS) play a role in the etiology of each disorder, yet little is known about the combined effects of these on comorbid SUDs and EDs or disordered eating behaviours (DEBs). This study aims to examine the role of these psychological factors in comorbid DEBs and SUDs among individuals in treatment for SUDs. The role of gender is tested as a moderator. Design/methodology/approach A cross-sectional self-report survey was completed by 131 participants attending Australian residential substance use treatment centres. A binomial logistic regression analysis was performed to examine the effects of emotional dysregulation, RI and RS on comorbid DEB and SUD. Further, moderation analyses were used to examine the moderating effect for gender on the relationship between these three personality variables and comorbidity. Findings The most commonly reported primary substance of use was alcohol (43.5%), followed by amphetamines (38.6%). Findings showed that emotional dysregulation and RI were significantly related to an increase in comorbidity likelihood; however, RS was not. Gender moderated the relationship between comorbidity and RI only. Originality/value The significant positive relationship found between RI and comorbidity for females only was a novel finding for the current study. Further research is needed to develop an understanding of the etiology of comorbidity.

Financial statement effects of adopting IFRS: the Canadian experience

2018 ◽  
Vol 26 (4) ◽  
pp. 466-491 ◽  
Author(s):  
Eva K. Jermakowicz ◽  
Chun-Da Chen ◽  
Han Donker
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Financial Statement ◽  
Net Income ◽  
Cross Sectional ◽  
Toronto Stock Exchange ◽  
Content Type ◽  
Publicly Traded Companies ◽  
Interaction Terms

Purpose The purpose of this study is to examine the effects of adopting International Financial Reporting Standards (IFRS) on financial statements of the largest Canadian firms (S&P/TSX 60) listed on the Toronto Stock Exchange (TSX). Design/methodology/approach This study investigates the financial statement effects of 46 companies from the S&P/TSX 60 index which report under IFRS in 2011 and switched to IFRS from CGAAP. This study used panel data analysis, which can be considered as more powerful when conducting cross-sectional and in time analysis among companies. Because of weakness of Cramer statistic on R-square, the authors used interaction terms as suggested by Hope (2007). Findings Consistent with the authors’ perceptions, this study finds that significant effects of adopting IFRS are associated with industry practices. The empirical results show that the adoption of IFRS in Canada created more relevant financial reporting for book value of equity and net income in the post-adoption periods. Originality/value This study should be of interest to the US regulators considering IFRS adoption by US publicly traded companies as well as to regulators, standard setters and listed companies in all countries worldwide that are in transition to IFRS.

The mediating role of autonomy in the effect of pro-innovation climate and supervisor supportiveness on innovative behavior of nurses

2019 ◽  
Vol 22 (1) ◽  
pp. 41-58 ◽  
Author(s):  
Betül Sönmez ◽  
Aytolan Yıldırım
Keyword(s):  
Organizational Climate ◽  
Linear Regression Analysis ◽  
Professional Autonomy ◽  
Added Value ◽  
Innovative Behavior ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
Innovation Climate

PurposeThe purpose of this paper is to test the mediating role of autonomy in the effect of a pro-innovation organizational climate and supervisor supportiveness (SS) on the innovative behavior (IB) of nurses.Design/methodology/approachThe sample of this cross-sectional, correlational study consisted of 332 nurses, who were selected, on the basis of the convenience sampling method, from among the nurses working at two public university hospitals in Istanbul. The data of the study were collected between February and May of 2015. Descriptive analysis and linear regression analysis were used for data analysis, and the bootstrapping method was applied to test the significance of the mediating role.FindingsThe model used for examining the mediating role of autonomy was found to be statistically significant, as it explained 36 percent of the variance of IB. When the significance of the mediating role was tested, its effect on both innovation climate and SS was observed to be significant.Originality/valueThe obtained results indicated that a pro-innovation organizational climate and SS functioned as premises for autonomy. In turn, the rise in autonomy level that served to innovative climate and SS increased the IB of the nurses through boosting their autonomy level. From these results, it can be argued that nurses with a high level of professional autonomy can create innovative outputs and provide added value through the IB they practice in providing patient care and general health services.

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