scholarly journals The Mediating Role of Risk Perception among Cognitive Biases towards Decision to Start a New Venture

2015 ◽  
Vol 54 ◽  
pp. 88-95
Author(s):  
Maheen Butt ◽  
Nadia Jamil ◽  
Rabia Nawaz
Keyword(s):  
Risk Perception ◽  
Risk Perceptions ◽  
Cognitive Biases ◽  
Negative Impact ◽  
New Venture ◽  
Illusion Of Control ◽  
Mediating Role ◽  
Overconfidence Bias ◽  
The Relationship

The Objective of the study is to investigate the relationship of overconfidence bias and illusion of control bias towards the start of new venture, with the mediating role of risk perception in context of Pakistan. To understand the relationship, this study developed and tested hypothesis by correlation and regression analysis. This study’s sample consisted of 170 students pursuing a Masters of Business Administration. The students’ responses to a survey based on a case study regarding a decision to start a venture were examined. This study found illusion of control and risk perceptions have significant effect on decision to start new venture. Conversely, overconfidence bias has insignificant relationship with decision to start new venture. The positive and negative impact of biases and perceiving low levels of risk suggest the importance of exploring the area of venture formation. As this study has incorporated two biases but many other biases should also be considered that effect human decision making process like self-efficacy, availability heuristics, law of small numbers and escalation of commitment.

Cognitive Biases, Risk Perception, and Individual's Decision to Start a New Venture

2018 ◽  
Vol 9 (3) ◽  
pp. 14-29 ◽  
Author(s):  
Salma Zaiane ◽  
Fatma Ben Moussa
Keyword(s):  
Risk Perception ◽  
Cognitive Biases ◽  
New Venture ◽  
Illusion Of Control ◽  
Mediating Role ◽  
Correlation And Regression Analysis ◽  
Reduce Risk ◽  
Relationship Of ◽  
The Relationship

The purpose of this article is to investigate the relationship of overconfidence and illusion of control towards the start of new venture, taking in consideration the mediating role of risk perception in the context of Tunisia. This article examines students' responses to surveys based on a teaching case titled “Optical Distortion, Inc.” The authors tested hypotheses by correlation and regression analysis. The results show that the perception towards risk associated with new venture plays an important role in decision-making. Moreover, they find that overconfidence and illusion of control reduce risk perception associated to the decision to start a venture. While overconfidence directly affects the decision to start a venture and indirectly through its effect on reducing the risk perception, illusion of control has neither a direct nor an indirect impact on that. These results partially confirm those of Simon show that the mediation exists but partially.

scholarly journals Social Exclusion and Impulsive Buying among Chinese College Students: The Mediating Role of Self-Esteem and The Moderating Role of Risk Preference

2021 ◽  
Author(s):  
Haocheng Luo ◽  
Jiarong Chen ◽  
Shengnan Li ◽  
Yangang Nie ◽  
Guodong Wang
Keyword(s):  
College Students ◽  
Social Exclusion ◽  
Negative Impact ◽  
Risk Preference ◽  
Self Esteem ◽  
Negative Consequences ◽  
Mediating Role ◽  
Impulsive Buying ◽  
The Relationship

With the development of science and technology, buying has become much easier. At the same time, however, impulsive buying has many negative consequences for college students, and the causes of impulsive buying should therefore be explored. To explore the relationship between social exclusion and impulsive buying and its underlying mechanism, this study used the Social Exclusion Scale, Self-Esteem Scale, Risk Preference Scale, and Impulsive Buying Scale to investigate the roles of self-esteem and risk preference in the relationship between social exclusion and impulsive buying among 768 college students (387 were female, Mage = 20.25 years). The results were as follows: (1) when controlling for gender, age, family monthly income, and monthly living expenses, social exclusion significantly and positively predicted impulsive buying; (2) self-esteem played a mediating role between social exclusion and impulsive buying; (3) risk preference moderated the relationship between the second half of the mediating path and the direct path. These results reveal the mechanism underlying impulsive buying in college students, that is, social exclusion will predict the decrease of college students' self-esteem, and low self-esteem will further predict college students' impulsive buying which is a way for them to gain a sense of self-worth. Relatively low risk preference can well alleviate the negative impact of social exclusion and low self-esteem on impulsive buying. What’s more, these results have implications for impulsive buying interventions. Schools should aim to create a good peer atmosphere by making certain rules that help to reduce social exclusion and parents and education departments should cultivate students’ risk awareness to avoid risk behaviors in college students, such as impulsive buying behavior.

scholarly journals Risk Perception of COVID-19, Meaning-Based Resources and Psychological Well-Being amongst Healthcare Personnel: The Mediating Role of Coping

2020 ◽  
Vol 9 (10) ◽  
pp. 3225 ◽  
Author(s):  
Dariusz Krok ◽  
Beata Zarzycka
Keyword(s):  
Risk Perception ◽  
Coping Strategies ◽  
Well Being ◽  
Healthcare Personnel ◽  
Personal Factors ◽  
Psychological Well Being ◽  
Mediating Role ◽  
And Coping ◽  
The Relationship

The well-being of healthcare personnel during the COVID-19 pandemic depends on the ways in which they perceive the threat posed by the virus, personal resources, and coping abilities. The current study aims to examine the mediating role of coping strategies in the relationship between risk perception of COVID-19 and psychological well-being, as well as the relationship between meaning-based resources and psychological well-being amongst healthcare personnel in southern Poland. Two hundred and twenty-six healthcare personnel who worked in hospitals, outpatient clinics, and medical laboratories during the first few months of the coronavirus pandemic (March–May 2020) filled in questionnaires measuring risk perception of COVID-19, meaning-based resources, coping, and psychological well-being. The results demonstrate that risk perception was negatively related to psychological well-being, whereas meaning-based resources were positively associated with well-being. Two coping strategies—problem-focused and meaning-focused coping—mediated the relationship between risk perception and psychological well-being as well as the relationship between meaning-based resources and psychological well-being. This indicates that perception processes and personal factors do not directly influence healthcare personnel’s psychological well-being, but rather they do indirectly through coping processes.

scholarly journals Feel the commitment: From situational emotional information to venture goal commitment

2018 ◽  
Vol 37 (3) ◽  
pp. 215-240 ◽  
Author(s):  
Theresa Treffers ◽  
Kim Klyver ◽  
Mette Søgaard Nielsen ◽  
Marilyn A Uy
Keyword(s):  
Goal Commitment ◽  
New Venture ◽  
Appraisal Theory ◽  
Cognitive Mechanisms ◽  
Emotional Information ◽  
Mediating Role ◽  
Opportunity Evaluation ◽  
The Relationship ◽  
Moderating Role

An individual’s commitment stimulates action, but we know little about how entrepreneurial commitment initially emerges. Utilising affect-as-information and the appraisal theory, our objective is to investigate the influence of situational emotional information on the venture goal commitment of individuals, defined as commitment to the goal of starting a new venture. Based on a correlational pilot study and an experimental scenario approach, we first link encouragement and discouragement provided by the individual’s parents and friends to venture goal commitment and test the mediating role of opportunity evaluation. Second, we find that emotional intelligence plays a moderating role in the relationship between situational emotional information and venture goal commitment as mediated through opportunity evaluation. Overall, our research underscores the emotional and cognitive mechanisms that shape venture goal commitment by explaining how and under which conditions situational emotional information is internalised and venture goal commitment emerges.

Entrepreneurial Traits, Entrepreneurial Environment Perception, and New Venture Performance: Empirical Evidence from Chinese Firms

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Cong Cheng ◽  
Wei Zhang ◽  
Wenyao Zhang ◽  
Yuan Jiang
Keyword(s):  
Entrepreneurial Orientation ◽  
New Venture ◽  
Mediating Role ◽  
Venture Performance ◽  
Environment Perception ◽  
Time Lagged ◽  
Entrepreneurial Activities ◽  
The Relationship ◽  
Moderating Role

AbstractEntrepreneurs, as initiators of entrepreneurial activities, have long been one of important research objects in the field of entrepreneurship research and, however, there has been no study reported on how entrepreneurial traits influence venture performance from a perspective of entrepreneurial orientation. This study explored the relationship between entrepreneurial traits and venture performance by focusing on the mediating role of entrepreneurial orientation and the moderating role of entrepreneurial environment perception. Using time-lagged data from 321 private enterprises in China, the results reveal that entrepreneurial traits are positively related to venture performance, and this link is mediated by entrepreneurial orientation. Additionally, moderated path analysis indicates that entrepreneurial environment perception strengthens the direct effect of the entrepreneurial traits on entrepreneurial orientation and its indirect effect on venture performance. This study extends the scope of entrepreneurial traits research, and provides evidence for arguments that entrepreneurship in the context of China.

scholarly journals Behavioral Cost of Managerial Decisions Under Risk Perception and Culture: A Comparative Study Between the United States and Pakistan

SAGE Open ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 215824402110278
Author(s):  
Nishwa Iqbal Dar ◽  
Syed Zulfiqar Ali Shah ◽  
Zeeshan Ahmed
Keyword(s):  
Decision Making ◽  
New York ◽  
Risk Perception ◽  
Cognitive Biases ◽  
Stock Exchange ◽  
The United States ◽  
Managerial Decision ◽  
Managerial Decisions ◽  
Overconfidence Bias

The study is an attempt to find the reasons for biased behavior of overconfident managers while making financial decisions on behalf of shareholders. The study further seeks the ways to resolve the problems faced by firms due to such biased decision-making. For this purpose, quantitative research method is used to uncover the new information for better understanding of study. The comparative analysis has been done through survey-based data collected from executives/managers of firms listed on Pakistan Stock Exchange and New York Stock Exchange. The results indicate that overconfidence bias plays a significant role in managerial decisions for Pakistan compared with U.S. managers. This study applied mediation and moderation tests and found the significant mediating role of risk perception for overconfidence bias and manager decisions. The study further checked moderating role of cultural value, that is, the role of uncertainty avoidance between overconfidence bias of managers and risk perception. Hence, the role of cognitive biases and bounded rationality is undeniable for managerial decision-making and ultimate behavioral cost that firms have to pay due to undesired outcomes of situations. Consequently, this study has reached to extract the hidden facts and solutions to the observed issues for developed and emerging economy’s firms through cultural differences.

scholarly journals Cognitive Biases, Risk Perception, and Risky Driving Behaviour

2021 ◽  
Vol 14 (1) ◽  
pp. 77
Author(s):  
Cornelia Măirean ◽  
Grigore M. Havârneanu ◽  
Danijela Barić ◽  
Corneliu Havârneanu
Keyword(s):  
Risk Perception ◽  
Traffic Safety ◽  
Cognitive Biases ◽  
Illusion Of Control ◽  
Future Research ◽  
Risky Behaviour ◽  
Risky Driving ◽  
Optimism Bias ◽  
Driving Behaviour ◽  
The Relationship

This study evaluated the relationship between drivers’ cognitive biases (i.e., optimism bias, illusion of control) and risky driving behaviour. It also investigated the mediational role of risk perception in the relationship between cognitive biases and self-reported risky driving. The sample included 366 drivers (Mage = 39.13, SD = 13.63 years) who completed scales measuring optimism bias, illusion of control, risk perception, and risky driving behaviour, as well as demographic information. The results showed that risky driving behaviour was negatively predicted by optimism bias and positively predicted by the illusion of control. Further, risk perception negatively correlated with risky behaviour and also mediated the relation between both optimism bias and illusion of control with risky driving. The practical implications of these results for traffic safety and future research are discussed.

scholarly journals The Relationship between Gender, Tax Burdens, Corruption Practices, and Tax Compliance

2020 ◽  
Vol 55 (3) ◽  
Author(s):  
Theresia Woro Damayanti ◽  
Ronny Prabowo ◽  
Usil Sis Sucahyo ◽  
Supramono Supramano
Keyword(s):  
Negative Impact ◽  
Tax Compliance ◽  
Mediating Effect ◽  
Mediating Role ◽  
Top Managers ◽  
Research Gap ◽  
Using Data ◽  
The Impact ◽  
The Relationship

The article describes a new idea: the effect of top managers’ gender on tax compliance that is mediated by perceived tax burdens. This study also analyses the impact of perceived tax burdens on tax compliance as moderated by perceived corruption practices. Using data from the World Bank’s survey on 6,533 firms in the Association of Southeast Asian Nations countries and analyzing the data using a multiple regression analysis and Haye’s bootstrapping, the results confirm the mediating effect of perceived tax burdens on the effect of gender on tax compliance. The study also empirically shows that corruption strengthens the negative impact of perceived tax burdens on tax compliance. The contribution of this study is twofold. First, we fill in the research gap on the mediating role of perceived tax burdens and the moderating role of perceived corruption practices in the tax compliance context. Second, this study informs policymakers that they need to balance their gender equality policies with serious efforts to instill awareness on tax obligations and support anti-corruption institutions to prevent and crack down on corruption cases.

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