PRIOR TRADING OUTCOMES AND SUBSEQUENT PORTFOLIO RISKS: USING SECURITIES DEALER IN TAIWAN AS AN EXAMPLE

This study examines whether the investment behavior of securities dealers is consistent with the predictions of the house money and break-even effects. Using the stock portfolios, dealers hold in Taiwan from 1996 to 2013 as a sample, we test the relationship between trading gains/losses and subsequent changes in portfolio risk. The results show that only gains with low risks, not all gaining situations, cause subsequent risk preferences, and regardless of the size of the trading loss, there is not a significant change in subsequent risk. Controlling dealers’ characteristics, industry competition, and the stock market condition, the evidence shows that the house money effect on dealer behavior exists after earning low-risk profits and does not support the break-even effect. These results are qualitatively unchanged after robustness checks that primarily exclude dealer overconfidence effect and ensure that the risk-taking behavior under low risks results in a decrease in gains and thus not a rational behavior.

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ENDOGENOUS CROSS CORRELATIONS

Macroeconomic Dynamics ◽

10.1017/s1365100507060270 ◽

2007 ◽

Vol 11 (S1) ◽

pp. 124-153 ◽

Cited By ~ 2

Author(s):

STEPHEN E. SATCHELL ◽

STEFFI J.-H. YANG

Keyword(s):

Financial Regulation ◽

Equity Markets ◽

Portfolio Diversification ◽

Current View ◽

Investment Behavior ◽

Portfolio Risk ◽

Herd Effect ◽

Cross Correlations ◽

Asymmetric Correlation ◽

The Relationship

This paper studies the relationship between rational herding and cross correlations in security returns. It demonstrates analytically and numerically that herding, as a temporary, fragile convergence of investment behavior, can endogenously induce asset dependency. Furthermore, there exists a self-reinforcing process, in which market extreme events amplify the herd effect, which further exacerbates asset dependency. Considering the Taiwan and U.K. equity markets, we find that the simulated markets in the presence of herding have results closer to the real patterns of asset dependency than a static model with isolated, noninteracting individuals. Our findings cast doubts on the current view that transparent financial regulation is always desirable. Moreover, this paper finds statistical evidence of asymmetric correlation patterns in both the top 50 stocks in the U.K. and Taiwan equity markets. This suggests that portfolio diversification as a means of managing portfolio risk is unlikely to be effective in periods of extreme losses in these markets.

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The Effect of Corporate Governance on the Relationship between Industry Competition and Voluntary Disclosure

Korean Accounting Review ◽

10.24056/kar.2017.10.003 ◽

2017 ◽

Vol 42 (6) ◽

pp. 117-158

Author(s):

Oh Jin Kwon ◽

Soon Jae Choi

Keyword(s):

Corporate Governance ◽

Voluntary Disclosure ◽

Industry Competition ◽

The Relationship

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Risk-Taking Behavior and the Consumption of Alcohol Mixed with Energy Drink among Australian, Dutch and UK Students

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph18105315 ◽

2021 ◽

Vol 18 (10) ◽

pp. 5315

Author(s):

Sean J. Johnson ◽

Sarah Benson ◽

Andrew Scholey ◽

Chris Alford ◽

Joris C. Verster

Keyword(s):

Alcohol Consumption ◽

The Netherlands ◽

Risk Taking ◽

Positive Relationship ◽

Energy Drinks ◽

Energy Drink ◽

Energy Drink Consumption ◽

Risk Taking Behavior ◽

The Relationship ◽

Level Of Risk

The relationship between risk-taking behavior, alcohol consumption and negative alcohol-related consequences is well known. The current analyses were conducted to investigate whether alcohol mixed with energy drink (AMED) is related to risk-taking behavior and if there is a relationship between the amount of energy drink mixed with alcohol consumed, risk-taking behavior and negative alcohol-related consequences. Data from N = 1276 AMED consuming students from the Netherlands, UK and Australia who completed the same survey were evaluated. The analysis revealed that, compared to AMED occasions, on alcohol only (AO) occasions significantly more alcohol was consumed and significantly more negative alcohol-related consequences were reported. On both AO and AMED occasions, there was a strong and positive relationship between amount of alcohol consumed, level of risk-taking behavior and number of reported negative alcohol-related consequences. In contrast, the level of risk-taking behavior was not clearly related to energy drink consumption. Across risk-taking levels, differences in the amount of energy drink consumed on AMED occasions did not exceed one 250 mL serving of energy drink. When correcting for the amount of alcohol consumed, there were no statistically significant differences in the number of energy drinks consumed on AMED occasions between the risk-taking groups. In conclusion, alcohol consumption is clearly related to risk-taking behavior and experiencing negative alcohol-related consequences. In contrast, energy drink intake was not related to level of risk-taking behavior and only weakly related to the number of experienced negative alcohol-related consequences.

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Sustainable Competitive Advantage through Entrepreneurship, Market-Oriented Culture, and Trust

Sustainability ◽

10.3390/su13073986 ◽

2021 ◽

Vol 13 (7) ◽

pp. 3986

Author(s):

Jun-Chul Ha ◽

Jun-Woo Lee ◽

Jee Young Seong

Keyword(s):

Work Engagement ◽

Risk Taking ◽

Choice Theory ◽

Business Environment ◽

Positive Influence ◽

Mediating Effect ◽

Sustainable Competitive Advantage ◽

The Relationship ◽

Positive Effect ◽

Significant Positive Influence

In a rapidly changing business environment, the entrepreneurship of top management is essential for the survival and sustainable development of the enterprise. Building on the view of the strategic choice theory, this study identifies the relationship between entrepreneurship, market-oriented culture, and work engagement. Data were collected from 493 employees regularly working in small and medium-sized firms in South Korea. The results of this study indicate: (1) entrepreneurship (consisting of innovation, proactiveness, and risk-taking) has a significant positive influence on market-oriented culture, (2) entrepreneurship positively affects work engagement, (3) market-oriented culture has a significant positive effect on work engagement, (4) the effects of innovation and proactiveness on work engagement are significant, controlling for market-oriented culture, showing the partial mediating effect of market-oriented culture on work engagement, and (5) CEO trust moderates the relationship between risk-taking and work engagement. Theoretical and practical implications are suggested.

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Moderating effect of personality traits on the relationship between risk-taking behaviour and self-injury among first-year university students

Advances in Mental Health ◽

10.1080/18387357.2021.1913065 ◽

2021 ◽

pp. 1-13

Author(s):

Choja Oduaran ◽

Samson F. Agberotimi

Keyword(s):

University Students ◽

Personality Traits ◽

Risk Taking ◽

Moderating Effect ◽

First Year ◽

Self Injury ◽

First Year University ◽

The Relationship

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Effects of the COVID-19 Pandemic on Sports Entrepreneurship

Sustainability ◽

10.3390/su12208493 ◽

2020 ◽

Vol 12 (20) ◽

pp. 8493

Author(s):

Paloma Escamilla-Fajardo ◽

Juan M. Núñez-Pomar ◽

Ferran Calabuig-Moreno ◽

Ana M. Gómez-Tafalla

Keyword(s):

Service Quality ◽

Risk Taking ◽

Non Profit ◽

Paired Sample ◽

Sports Clubs ◽

Before And After ◽

The Impact ◽

The Relationship ◽

Linear Regressions ◽

Crisis Situations

Sports entrepreneurship has been considered an important part of sports organisations when overcoming crisis situations. The aim of this study is to determine the impact of the crisis derived from COVID-19 on sports entrepreneurship and whether there are differences in the prediction of entrepreneurship on service quality in non-profit sports clubs. To this end, 145 sports clubs were analysed before and after the outbreak of the virus in society. Paired sample-t tests were carried out to determine the differences in variables studied before (Time I) and after (Time II) the COVID-19 outbreak, and correlations and hierarchical linear regressions were used to analyse the relationship between the variables studied in the two different stages. The results obtained show that risk-taking and innovation are significantly higher after the appearance of COVID-19, while proactivity has not undergone significant changes. Finally, the relationship between sports entrepreneurship and service quality is positive and significant in both stages but stronger before the crisis.

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Relationship between Rational Thinking and Belief in a Just World

Psychological Reports ◽

10.2466/pr0.1980.46.1.161 ◽

1980 ◽

Vol 46 (1) ◽

pp. 161-162 ◽

Cited By ~ 7

Author(s):

Clayton T. Shorkey

Keyword(s):

Undergraduate Students ◽

Rational Behavior ◽

Just World ◽

Rational Thinking ◽

Pearson Coefficient ◽

The World ◽

The Relationship

The relationship between rational thinking and belief in a just world was examined using scores on the Rational Behavior Inventory and the Just World Scale from 129 undergraduate students. It was hypothesized that rational thinking would be incompatible with absolutistic beliefs that the world is a just place. A Pearson coefficient of —.11 was computed between scores on the two scales; this supports the hypothesis that neither absolutistic acceptance nor rejection of a belief in a just world is related to rational thinking.

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