Do personal values explain variation in satisficing measures of risk?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kavitha Ranganathan
Keyword(s):  
Risk Measure ◽  
Ecological Rationality ◽  
Value Systems ◽  
Worst Case ◽  
Content Type ◽  
Portfolio Returns ◽  
Personal Value ◽  
Schwartz Value Survey ◽  
Aspiration Levels ◽  
Measures Of Risk

PurposeThe role of personal value systems as antecedents to risk has been largely ignored. Following Gigerenzer's view of ecological rationality, the authors argue an individual's personal value system serves as concrete motivations that guide risky choices and facilitate adaptation to one's environment.Design/methodology/approachThe authors elicit risk attitudes using a satisficing-based risk elicitation method that exploits the idea of worst-case aspiration or minimum portfolio returns given a portfolio comprising a safe and risky prospect. The elicited worst-case aspiration allows for more descriptive and natural ways of characterizing attitudes to risk (i.e. satisficing measures of risk). Using the Schwartz Value Survey, the authors assess the relative importance individuals place on value systems, such as personal focus versus social focus. The authors argue that preference to value systems has linkages with the worst-case aspiration setting emphasized in the satisficing task.FindingsThis study’s findings suggest that individuals who are willing to give up higher potential returns to protect their downside risk (by setting higher worst-case aspiration) are positively associated with personal focus—concern about own outcomes than social focus—concern about the outcomes for others or established institutions.Research limitations/implicationsCurrently, the study’s setting is in the domain of financial decision-making. Going forward, milestones could be set for studying risky real-world choices by simply changing the risk measure in different contexts, such as job choices, education, health and social interactions.Originality/valueThis study contributes to the discussion on the psychometric structure of risk. Prescriptive benefits of satisficing as a positive heuristic, which is interpreted as setting achievable goals or aspiration levels, are extensive and recognized in various industries ranging from agriculture, airlines, insurance to financial advising. More recently, cognitive processes, such as emotions and personal value systems, are recognized as a type of social cognition that subserve heuristic functions that can guide behavior quickly and accurately.

Personal Value Systems of American Managers

1967 ◽  
Vol 10 (1) ◽  
pp. 53-68 ◽  
Author(s):  
George W. England
Keyword(s):  
Value Systems ◽  
Personal Value

Impact of values on the learning approaches of Chinese construction students in Hong Kong

2014 ◽  
Vol 21 (5) ◽  
pp. 481-504 ◽  
Author(s):  
Mei-yung Leung ◽  
Chen Dongyu ◽  
Anita M.M. Liu
Keyword(s):  
Hong Kong ◽  
Interpersonal Relationships ◽  
Personal Values ◽  
Value Systems ◽  
Limited Attention ◽  
Learning Approaches ◽  
Personal Integrity ◽  
Content Type ◽  
Learning Behaviours ◽  
The Impact

Purpose – The purpose of this paper is to explore the influence of personal values on students’ learning behaviours. Hong Kong construction students are often criticized, by both practitioners and educators, as rote learners. To improve students’ learning processes, extensive research on a variety of aspects of construction education has been conducted. However, limited attention has been paid to the influence of personal values on students’ learning behaviours. The impact of personal value factors on the learning approaches of Chinese construction students in Hong Kong is investigated. Design/methodology/approach – A questionnaire survey was conducted to ethically Chinese construction students in four universities in Hong Kong. A total of 820 questionnaires were distributed and 431 valid returns were collected. Findings – The survey identified six influential values (namely, personal integrity, conservatism, determination, discipline, interpersonal relationships, and achievement), and shows that students who emphasize the virtues of personal integrity, determination, and a positive attitude toward achievement are better able to handle their interpersonal relationships, which will eventually lead them to engage in deep learning. Originality/value – Work to develop appropriate value systems is thus recommended in freshmen courses, as is the use of cooperative learning approaches. Such value systems will have a long-term influence on the learning approaches of construction students.

Road to default: Tracoma holding Berhad Bai Bithaman Ajil Debt securities (BaIDS)

2015 ◽  
Vol 5 (5) ◽  
pp. 1-6
Author(s):  
A.M. Hafizi ◽  
Shahida Shahimi ◽  
Mohd Hafizuddin Syah Bangaan Abdullah ◽  
M. Badrul Hakimi Daud
Keyword(s):  
Learning Outcomes ◽  
Capital Market ◽  
Credit Rating ◽  
Subject Area ◽  
Capital Requirements ◽  
Fund Raising ◽  
Case Scenario ◽  
Worst Case ◽  
Content Type ◽  
Analytical Skills

Subject area Islamic Finance and Investment Study level/applicability Level of program/audience: Advanced undergraduate and postgraduate. Courses Intermediate and Advanced Finance, Economics, Islamic Economics & Finance, Islamic Banking & Finance, Islamic Capital Market and other relevant courses. Specifictopics/syllabus Capital markets instruments, conventional or Islamic. Case overview This case focuses on Tracoma Holding Berhad Bai Bithaman Ajil Debt Securities (BaIDS) amounting to RM 100 million which was issued by Tracoma Holding Berhad in 2005. It was the first issuance of a sukuk (Islamic debt securities or bond) by the company. The proceeds were used to finance its growth and to repay existing bank borrowings and capital requirements. This case is interesting, as it allows students to study the bai bithaman ajil sukuk structure and issuance process in the Malaysian capital market. It also provides basic financial transaction and credit rating of sukuk which requires analytical skills. Being a debt-based facility, the sukuk was subjected to credit rating evaluation by the MARC, the rating agency appointed by the company. Further downgrading of the sukuk meant it would lead to the worst-case scenario. Some actions needed to be taken to solve this issue; therefore, the CFO suggested an urgent meeting with the sukuk holders. Expected learning outcomes The students should be able to: understand the issuance process and the principle of BBA (bai bithamin ajil) in sukuk structure; understand reason(s) methods of fund raising by firm and the allocations of fund; understand the sukuk default issue; analyze the reasons for sukuk default; understand the importance of debt securities credit ratings; and identify investors' protection in the case of sukuk default. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Sprawl of the COVID-19 in changing scenario: a methodology based on social interaction

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gaurav Kumar ◽  
Akshay Kumar ◽  
Farhan Mohammad Khan ◽  
Rajiv Gupta
Keyword(s):  
Social Interaction ◽  
Design Methodology ◽  
Mitigation Strategy ◽  
Recent Past ◽  
Scenario Development ◽  
Worst Case ◽  
Content Type ◽  
Management Scheme ◽  
Business As Usual ◽  
Inter State

PurposeThere are several methods developed in the recent past to predict the spread of COVID-19 in different countries. However, due to changing scenarios in terms of interaction among people, none could predict the case close to the actual figures. An attempt to simulate people's interaction due to economic reopening concerning the confirmed cases at various places as per changing situation has been made. The scenario development method's base lies in the hypothesis that if there were no inter-state transportation during India's lockdown after May 24th, the number of infection cases would have started lowering down in a normalized progression.Design/methodology/approachThis study has developed three scenarios from the worst to the business-as-usual to the best in order to project the COVID-19 infections in India concerning infections observed from January 30th till May 24th, 2020, since the domestic flights became operational from May 25th, 2020, in India.FindingsBased on the observed cases till May 24th, the rise of cases is projected further in a random progression and superimposed to the normal progression. The results obtained in the three scenarios present that worst case needs complete lockdown, business-as-usual case needs regulatory lockdown and best case assures complete lockdown release by the second week of September 2020. This study suggests the preparedness and mitigation strategy for a threefold lockdown management scheme in all-inclusive.Originality/valueThe work has been done on a hypothesis which is solely original.

Modelling resilient fashion retail supply chain strategies to mitigate the COVID-19 impact

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
P.R.S. Sarma ◽  
Aalok Kumar ◽  
Nishat Alam Choudhary ◽  
Sachin Kumar Mangla
Keyword(s):  
Supply Chain ◽  
Capacity Constraints ◽  
Content Type ◽  
Online Platforms ◽  
Aspiration Levels ◽  
The Future ◽  
Optimisation Model ◽  
Fashion Retail ◽  
Online Stores ◽  
The Impact

PurposeThis paper aims to develop supply chain strategies for the fashion retail supply chain (FRSC), likely to be disrupted by the current pandemic (COVID-19) under physical and online retail stores. The resilient retail supply chain design is proposed under budget allocation and merchandise capacity constraints.Design/methodology/approachThis paper utilises the theory of constraint (ToC) and goal programming (GP) to address the COVID-19 impact on FRSC. The budgetary and capacity constraints are formulated with a constraint optimisation model and tested with six different priorities to deal with the physical and online stores. Next, all priorities are developed under different FRSC business scenarios. The ToC-GP-based optimisation model is validated with one of the Indian fashion retail supply chains.FindingsThe proposed optimisation model presents the optimal retailing strategies for selling fashion goods over physical and online platforms. The multiple scenarios are presented for developing trade-offs among different strategies to maximise the retailer's merchandise performance. This paper also highlighted the strategic movement from high merchandise density stores to low merchandise density stores. This implies a reduction of sales targets and aspiration levels of both online and physical fashion stores.Research limitations/implicationsThe proposed model is validated with one of the fashion retailers in India. Other nations or multiple fashion retailers might be considered for more generalisation of findings in the future.Practical implicationsThis research helps fashion retail supply chain managers deal with consumer demand uncertainty over physical and online stores in pandemic times. Limitation: Other nations or multiple fashion retailers might be considered for more generalisation of findings in the future.Originality/valueThis is the first study that considered the impact of COVID-19 on the retail fashion supply chain. The effect of physical and online platforms is mainly discussed from consumer marketing perspectives, but an inventory and resilience perspective is missing in earlier studies. The role of merchandise planning is highlighted in this study.

scholarly journals Decision making under interval uncertainty: toward (somewhat) more convincing justifications for Hurwicz optimism-pessimism approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Warattaya Chinnakum ◽  
Laura Berrout Ramos ◽  
Olugbenga Iyiola ◽  
Vladik Kreinovich
Keyword(s):  
Decision Making ◽  
Real Life ◽  
Interval Uncertainty ◽  
Lower And Upper Bounds ◽  
Worst Case ◽  
Content Type ◽  
Expected Gain ◽  
Utility Approach ◽  
Interval Valued ◽  
Weighted Combination

Purpose In real life, we only know the consequences of each possible action with some uncertainty. A typical example is interval uncertainty, when we only know the lower and upper bounds on the expected gain. A usual way to compare such interval-valued alternatives is to use the optimism–pessimism criterion developed by Nobelist Leo Hurwicz. In this approach, a weighted combination of the worst-case and the best-case gains is maximized. There exist several justifications for this criterion; however, some of the assumptions behind these justifications are not 100% convincing. The purpose of this paper is to find a more convincing explanation. Design/methodology/approach The authors used utility approach to decision-making. Findings The authors proposed new, hopefully more convincing, justifications for Hurwicz’s approach. Originality/value This is a new, more intuitive explanation of Hurwicz’s approach to decision-making under interval uncertainty.

PERSONAL VALUE SYSTEMS AND PERSONALITY

1970 ◽  
Vol 14 (3) ◽  
pp. 166-172
Author(s):  
SISTER M. GRACE REGINA WINGENFELD
Keyword(s):  
Value Systems ◽  
Personal Value

Heuristics in financial decision-making: the selection of SME financing by advisers in an increasingly diverse market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kirsten Rauwerda ◽  
Frank Jan De Graaf
Keyword(s):  
Decision Making ◽  
Structured Interview ◽  
Ecological Rationality ◽  
Personal Network ◽  
Research Attention ◽  
Content Type ◽  
Less Is More ◽  
Fast And Frugal Heuristics ◽  
Wide Range ◽  
Simple Rules

PurposeIn order to better understand how heuristics are used in practice, the authors explore what type of heuristics is used in the managerial domain of financial advisors to small and medium-sized enterprises (SMEs) and what influences the shaping of these heuristics. In doing so, the authors detect possible fast-and-frugal heuristics in day-to-day decision-making of independent financial advisers who help owners of SMEs to acquire capital (e.g. loans, factoring, leasing and equity).Design/methodology/approachThe authors inductively assessed the work of financial advisers of SMEs. Based on group discussions, the authors drew up a semi-structured interview-protocol with descriptive questions about how financial advisers come to a deal for their clients. The interviews of 19 professionals were analysed by relating them to the theory of fast-and-frugal heuristics.FindingsWithin their decision-making, advisers estimate the likelihood of acceptance by a few financial providers they know well in their personal network with a strong bias towards traditional banking products, although there are a large number of alternatives on the Dutch market. “Less is more” seems to be a relevant principle when defined as satisficing. Heuristics help advisers to deal with behavioural and economic limitations. Also, the authors have found that client interaction, previous working experience and the company the adviser is working for influences the shaping of the simple rules the adviser is using.Research limitations/implicationsThe study shows how difficult it is to understand the ecological rationality of a certain group of professionals and to understand the “less is more” principle. Financial advisers to SMEs use cognitive shortcuts and simple rules to advise SME-owners, based on previous experiences, but it is difficult to determine whether that leads to the same or even better solutions for them and their clients than using probability theory and financial optimisation models. Within heuristics, satisficing seems to be a dominant mechanism. Here, heuristics help advisers in recognising possibilities by searching for similarities between a current financing case and previous experiences. The data suggests that if “less is more” is defined as satisficing for one or more stakeholders involved, the principle dominates the decision making of financial advisers of SME's.Practical implicationsThe authors suggest the relevance of a behavioural approach to finance by assessing the day-to-day decisions of financial advisers of SMEs. Also, the authors suggest that financial advisers are guided by previous experiences, and they do not fully assess a wide range of options in their work but need shortcuts to fulfil the needs of their clients.Originality/valueThe study comes close to day-to-day decision-making in finance by assessing how professionals make decisions. The authors try to understand types of heuristics in relation with “ecological rationality” and the less is more principle. The authors assess financial advisers of SME-companies, a group that has gotten little research attention until now. The influence of client interaction and of the company the adviser is working for is remarkable in the shaping of the advisers' simple rules.

Evaluation of supply chain resilience index: a graph theory based approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nishtha Agarwal ◽  
Nitin Seth ◽  
Ashish Agarwal
Keyword(s):  
Supply Chain ◽  
Adjacency Matrix ◽  
Theoretic Approach ◽  
Worst Case ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Graph Theoretic ◽  
Graph Theoretic Approach ◽  
Resilience Index ◽  
Index Value

PurposeThe present study aims at developing a model to quantify supply chain resilience as a single numerical value. The numerical value is called resilience index that measures the resilience capability of the case company's supply chain. The model calculates the index value based on the interactions between the enablers of supply chain resilience and its dimensions.Design/methodology/approachGraph theoretic approach (GTA) is used to evaluate the resilience index for the case company's supply chain. In GTA, the dimensions of resilience enablers and their interdependencies are modelled through a digraph. The digraph depicting the influence of each dimension is converted into an adjacency matrix. The permanent function value of the adjacency matrix is called the resilience index (RI).FindingsThe proposed approach has been illustrated in context of an Indian automobile organization, and value of the RI is evaluated. The best case and the worst-case values are also obtained with the help of GTA. It is noted from the model that strategic level dimension of enablers is most important in contributing towards supply chain resilience. They are followed by tactical and operational level enablers. The GTA framework proposed will help supply chain practitioners to evaluate and benchmark the supply chain resilience of their respective organizations with the best in the industry.Originality/valueA firm can compare the RI of its own supply chain with other's supply chain or with the best in the industry for benchmarking purpose. Benchmarking of resilience will help organizations in developing strategies to compete in dynamic market scenario.

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