scholarly journals Impact of positive illusions and experience on decision to invest in own new venture

2021 ◽  
Vol 65 (3) ◽  
pp. 269-285
Author(s):  
Andrea Zelienková ◽  
Keyword(s):  
Risk Taking ◽  
Investment Decision ◽  
Illusion Of Control ◽  
Risk Attitudes ◽  
Positive Illusions ◽  
Unrealistic Optimism ◽  
Positive Events ◽  
Opportunity Evaluation ◽  
The Relationship ◽  
Process Macro

Objectives. The objective of this study is threefold: 1) to examine the effect of positive illusions on risk taking manifested in opportunity evaluation and investment decision; 2) to examine the mediating role of risk attitudes on the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision; 3) to examine the moderating effect of experience on the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. Sample and setting. Research sample comprised 132 entrepreneurs aged between 19 and 63 (M = 40.6; SD = 10.8) owning small, medium, and large-sized businesses. Hypotheses. 1) Individuals exhibiting higher positive illusions (overconfidence, unrealistic optimism, illusion of control) would take higher risk manifested in opportunity evaluation and investment decision. 2) Risk attitudes will mediate the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. 3) Experience will moderate the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. Statistical analysis and results. 1) Using simple linear regression it was found that only unrealistic optimism for rare positive events and illusion of control predicted risk taking manifested in investment decision. None of positive illusions explained opportunity evaluation. 2) Using PROCESS macro for mediation analysis it was found that domain-specific risk perception, rather than general risk tolerance, is statistically significant mediator of the relationship between unrealistic optimism for rare positive events and investment decision. 3) Moderation analysis via PROCESS macro showed that only entrepreneurial experience moderates the relationship between unrealistic optimism for rare positive events and investment decision using own savings. The limitations concerning gender and domain specificity of methods are discussed in the study.

scholarly journals Impact of positive illusions and experience on decision to invest in own new venture

2021 ◽  
Vol 65 (3) ◽  
pp. 269-285
Author(s):  
Andrea Zelienková ◽  
Keyword(s):  
Risk Taking ◽  
Investment Decision ◽  
Illusion Of Control ◽  
Risk Attitudes ◽  
Positive Illusions ◽  
Unrealistic Optimism ◽  
Positive Events ◽  
Opportunity Evaluation ◽  
The Relationship ◽  
Process Macro

Objectives. The objective of this study is threefold: 1) to examine the effect of positive illusions on risk taking manifested in opportunity evaluation and investment decision; 2) to examine the mediating role of risk attitudes on the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision; 3) to examine the moderating effect of experience on the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. Sample and setting. Research sample comprised 132 entrepreneurs aged between 19 and 63 (M = 40.6; SD = 10.8) owning small, medium, and large-sized businesses. Hypotheses. 1) Individuals exhibiting higher positive illusions (overconfidence, unrealistic optimism, illusion of control) would take higher risk manifested in opportunity evaluation and investment decision. 2) Risk attitudes will mediate the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. 3) Experience will moderate the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. Statistical analysis and results. 1) Using simple linear regression it was found that only unrealistic optimism for rare positive events and illusion of control predicted risk taking manifested in investment decision. None of positive illusions explained opportunity evaluation. 2) Using PROCESS macro for mediation analysis it was found that domain-specific risk perception, rather than general risk tolerance, is statistically significant mediator of the relationship between unrealistic optimism for rare positive events and investment decision. 3) Moderation analysis via PROCESS macro showed that only entrepreneurial experience moderates the relationship between unrealistic optimism for rare positive events and investment decision using own savings. The limitations concerning gender and domain specificity of methods are discussed in the study.

scholarly journals The Relationship between Risk Propensity, Risk Perception and Risk-Taking Behaviour in an Emerging Market

2013 ◽  
Author(s):  
Fazelina Sahul Hamid ◽  
Gary John Rangel ◽  
Fauziah M. Taib ◽  
Ramayah Thurasamy
Keyword(s):  
Risk Perception ◽  
Risk Taking ◽  
Emerging Market ◽  
Investment Decision ◽  
Primary Data ◽  
Thought Processes ◽  
Risk Propensity ◽  
Risky Behaviour ◽  
Behavioural Characteristics ◽  
The Relationship

This paper reports evidence to support a relationship between risk propensity, risk perception, and risk-taking behaviour of investors in an emerging market. Primary data were gathered using a validated structured questionnaire, which was self-administered by respondents: there were 162 investors from 8 stockbroking companies. A multiple regression was used to test the direct and indirect effects of the identified behavioural characteristics on investment decision. Risk propensity was found to be positively related to risk-taking behaviour whereas risk perception was negatively related to risk-taking behaviour. It was further found that risk perception partially mediates the effect of propensity to take risk. This suggests that the perceptual framing of a situational context in the investors’ thought processes reduces but it does not totally overwhelm the innate personality traits with respect to either the investor’s risk-seeking or risk-averseness. The tendency to engage in risky behaviour is more psychological in nature. The implications of the research are further explored.  

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

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.

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

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.

scholarly journals Gambling and ageing: less illusion but more risk

2021 ◽  
pp. 1-20
Author(s):  
Maylis Fontaine ◽  
Valérie Le Floch ◽  
Céline Lemercier
Keyword(s):  
Emerging Adults ◽  
Risk Taking ◽  
Time Perspective ◽  
Illusion Of Control ◽  
Gambling Behaviour ◽  
Cognitive Mechanisms ◽  
Risky Behaviour ◽  
Younger Adults ◽  
Key Factor ◽  
Middle Aged Adults

Abstract Seniors are a population of concern due to exposure to both increasing gambling venues and powerful age-specific risk factors. There has been only limited research on this population so far, but studies conducted among younger adults suggest that the illusion of control is a key factor, leading players to develop strategies that increase their risk-taking in gambling. Time perspective (TP) is a good indicator of risky behaviours in a number of different areas, including health and the environment. In the present study, we sought to identify the age-specific cognitive mechanisms underlying gambling behaviour in normal ageing. We asked 115 emerging adults (mean age = 20.86 years), 86 young adults (mean age = 30.59), 82 middle-aged adults (mean age = 44.57) and 108 seniors (mean age = 65.19) to play an online game. We rated their illusion of control, risk-taking and TP. Analysis revealed that seniors took more risks and had less illusion of control than younger adults. The fatalistic-present TP positively influenced the illusion of control, such that perceiving the present as being determined by uncontrollable forces increased the perceived level of control. Finally, we found an influence of age on TP. These results suggest that seniors constitute a specific population in terms of gambling-related cognitions and behaviours. Including TP in risky behaviour assessments would allow the development of tailor-made preventive measures.

scholarly journals Effects of the COVID-19 Pandemic on Sports Entrepreneurship

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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