In financial services these days, there is increasing interest in the concept of ‘risk culture.’ Risk culture has been identified as a dimension of organisational culture which is important for encouraging desirable risk management behaviour in the workplace and ultimately for producing both better organisational and customer/member outcomes in the financial services industry. Using a valid and reliable scale is very important when conducting surveys; an invalid measure may not measure what it purports to measure and therefore may mislead. The Macquarie University Risk Culture Scale is a set of 18 survey items initially developed for assessing risk culture in banks. The scale has now been validated for use in superannuation (pension) funds. This paper explains the validation process, giving confidence to those wishing to assess risk culture.
{"title":"How to Measure Risk Culture in Australian Superannuation Funds","authors":"Elizabeth Sheedy, D. Jepsen","doi":"10.2139/ssrn.3128693","DOIUrl":"https://doi.org/10.2139/ssrn.3128693","url":null,"abstract":"In financial services these days, there is increasing interest in the concept of ‘risk culture.’ Risk culture has been identified as a dimension of organisational culture which is important for encouraging desirable risk management behaviour in the workplace and ultimately for producing both better organisational and customer/member outcomes in the financial services industry. \u0000Using a valid and reliable scale is very important when conducting surveys; an invalid measure may not measure what it purports to measure and therefore may mislead. \u0000The Macquarie University Risk Culture Scale is a set of 18 survey items initially developed for assessing risk culture in banks. The scale has now been validated for use in superannuation (pension) funds. This paper explains the validation process, giving confidence to those wishing to assess risk culture.","PeriodicalId":416291,"journal":{"name":"IO: Firm Structure","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128597631","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Velmurugan Palaniappan Shanmugam, Mohammad Irshad VK
A transaction between a company and its related parties such as subsidiary companies, associate firms, key management personals and their relatives etc. is termed as Related Party Transaction (RPT). In the business world, related party transactions are quite common and it is a part of every business. It was identified that, behind many corporate frauds, there was a strong role of related party transactions. Now a day, it is an important question among researchers as well as regulatory bodies to identify the way of misusing related party transactions. This study analyses Indian listed companies, which is charted in NSE 200 Index and found that RPT is relatively predominant among all companies. At the end of this paper, it examined the relationship among related party transactions and performance of the companies as well as influences of ownership structure. It concluded as there is no significant impact on performance, whereas, proprietor’s ownership was highly connected with level of related party transactions.
{"title":"An Analysis of Corporate Governance Issues Arising Out of Related-Party Transactions: With Special Reference to NSE 200 Companies","authors":"Velmurugan Palaniappan Shanmugam, Mohammad Irshad VK","doi":"10.2139/ssrn.3095168","DOIUrl":"https://doi.org/10.2139/ssrn.3095168","url":null,"abstract":"A transaction between a company and its related parties such as subsidiary companies, associate firms, key management personals and their relatives etc. is termed as Related Party Transaction (RPT). In the business world, related party transactions are quite common and it is a part of every business. It was identified that, behind many corporate frauds, there was a strong role of related party transactions. Now a day, it is an important question among researchers as well as regulatory bodies to identify the way of misusing related party transactions. This study analyses Indian listed companies, which is charted in NSE 200 Index and found that RPT is relatively predominant among all companies. At the end of this paper, it examined the relationship among related party transactions and performance of the companies as well as influences of ownership structure. It concluded as there is no significant impact on performance, whereas, proprietor’s ownership was highly connected with level of related party transactions.","PeriodicalId":416291,"journal":{"name":"IO: Firm Structure","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125057248","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We investigate the effect of potential entry on the formation and stability of R&D networks considering farsighted firms. We show that the presence of a potential entrant often alters the incentives of incumbent firms to establish an R&D link. In particular, incumbent firms may choose to form an otherwise undesirable R&D collaboration in order to deter the entry of a new firm. Moreover, an incumbent firm may refrain from establishing an otherwise desirable R&D collaboration, expecting to form a more profitable R&D link with the entrant. Finally, potential entry may lead an inefficient incumbent to exit the market. We also perform a welfare analysisand show that market and societal incentives are often misaligned.
{"title":"The Effect of Entry on R&D Networks","authors":"E. Petrakis, Nikolas Tsakas","doi":"10.2139/ssrn.2704255","DOIUrl":"https://doi.org/10.2139/ssrn.2704255","url":null,"abstract":"We investigate the effect of potential entry on the formation and stability of R&D networks considering farsighted firms. We show that the presence of a potential entrant often alters the incentives of incumbent firms to establish an R&D link. In particular, incumbent firms may choose to form an otherwise undesirable R&D collaboration in order to deter the entry of a new firm. Moreover, an incumbent firm may refrain from establishing an otherwise desirable R&D collaboration, expecting to form a more profitable R&D link with the entrant. Finally, potential entry may lead an inefficient incumbent to exit the market. We also perform a welfare analysisand show that market and societal incentives are often misaligned.","PeriodicalId":416291,"journal":{"name":"IO: Firm Structure","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123060297","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Over the past two decades, there has been an increasing trend of organizations implementing simultaneously two or more management systems. The structural similarities of these systems – despite the diversity of their fields of application, such as occupational health and safety for OHSAS 18001, and environmental management for ISO 14001 – have enabled many organizations to integrate different systems into a single one, rather than implementing them separately from one another. The purpose of this paper is to examine in depth a case of integration of the ISO 14001 and OHSAS 18001 systems, using a construction company as a research setting, in order to draw conclusions about the level of integration achieved, as well as the benefits, the problems, and the critical success factors of this endeavour. The findings of this study show that both the company's devotion to the fulfillment of the critical success factors and the identical structure of the two systems under consideration have facilitated the successful outcome of integration. However, this does not automatically imply that the company adopted the idea of full integration. Instead, the maximization of integration benefits and the elimination of related problems was achieved through the company’s conscious choice to proceed with partial integration, keeping separate manuals, policies, and risk management procedures for each system. This study will be useful in order to understand that partial integration is a perfectly acceptable and realistic solution that, under certain circumstances, may even have a better cost-benefit ratio than full integration.
{"title":"Implementing an Integrated Health, Safety and Environmental Management System: The Case of a Construction Company","authors":"Filippos A. Tepaskoualos, Panos T. Chountalas","doi":"10.18421/IJQR11.04-01","DOIUrl":"https://doi.org/10.18421/IJQR11.04-01","url":null,"abstract":"Over the past two decades, there has been an increasing trend of organizations implementing simultaneously two or more management systems. The structural similarities of these systems – despite the diversity of their fields of application, such as occupational health and safety for OHSAS 18001, and environmental management for ISO 14001 – have enabled many organizations to integrate different systems into a single one, rather than implementing them separately from one another. The purpose of this paper is to examine in depth a case of integration of the ISO 14001 and OHSAS 18001 systems, using a construction company as a research setting, in order to draw conclusions about the level of integration achieved, as well as the benefits, the problems, and the critical success factors of this endeavour. The findings of this study show that both the company's devotion to the fulfillment of the critical success factors and the identical structure of the two systems under consideration have facilitated the successful outcome of integration. However, this does not automatically imply that the company adopted the idea of full integration. Instead, the maximization of integration benefits and the elimination of related problems was achieved through the company’s conscious choice to proceed with partial integration, keeping separate manuals, policies, and risk management procedures for each system. This study will be useful in order to understand that partial integration is a perfectly acceptable and realistic solution that, under certain circumstances, may even have a better cost-benefit ratio than full integration.","PeriodicalId":416291,"journal":{"name":"IO: Firm Structure","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132294582","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The international standard specification ISO 9001:2015 provides the items needed for the quality management applied to any company whatever its kind or size. This specification is applied now for two million and two hundreds companies all over the world. It was first issued in 1987 and since then it was updated several times. In this report we will discuss those updates that gave more flexibility for the company to go along with the environment and safety managements requirements. Adding of the context of the organization and the risk based thinking were very important to seek clients satisfaction and confidence. When applying those updates money and time could be saved. It’s about more than just "certification" "Certification to ISO 9001" should be a result of a well implemented quality management system!
{"title":"Updating of ISO 9001 'Risk Based Thinking'","authors":"H. A. Anwar","doi":"10.2139/ssrn.3163424","DOIUrl":"https://doi.org/10.2139/ssrn.3163424","url":null,"abstract":"The international standard specification ISO 9001:2015 provides the items needed for the quality management applied to any company whatever its kind or size. This specification is applied now for two million and two hundreds companies all over the world. It was first issued in 1987 and since then it was updated several times. In this report we will discuss those updates that gave more flexibility for the company to go along with the environment and safety managements requirements. Adding of the context of the organization and the risk based thinking were very important to seek clients satisfaction and confidence. When applying those updates money and time could be saved. It’s about more than just \"certification\" \"Certification to ISO 9001\" should be a result of a well implemented quality management system!","PeriodicalId":416291,"journal":{"name":"IO: Firm Structure","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-11-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123617996","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper presents economic models of cybersecurity investments by a firm, first considering the cost-benefit to the firm itself, and then to the eco-system of a supply-chain. We introduce a concept of a firm’s security knowledge set of its attack surface, relative to the universe of threats. We propose three classes of security production functions as the frontier curve of a firm’s knowledge set. We distinguish two types of security investments in acquiring data, information and expertise, vis-a-vis deploying defense measures and detection tools, and derive formula for optimal allocations. We analyze cyber breach propagations between firms in a supply-chain, and demonstrate that large firms requiring contractors to show security rating by third-parties can be an effective way of reducing information gap in a supply chain. We present a model for the reliability (sharpness) of cybersecurity rating for firms, and show how the perceived reliability of cybersecurity rating affects the incentives for firms to increase their security investments.
{"title":"Knowledge Set of Attack Surface and Cybersecurity Rating for Firms in a Supply Chain","authors":"Shaun S. Wang","doi":"10.2139/ssrn.3064533","DOIUrl":"https://doi.org/10.2139/ssrn.3064533","url":null,"abstract":"This paper presents economic models of cybersecurity investments by a firm, first considering the cost-benefit to the firm itself, and then to the eco-system of a supply-chain. We introduce a concept of a firm’s security knowledge set of its attack surface, relative to the universe of threats. We propose three classes of security production functions as the frontier curve of a firm’s knowledge set. We distinguish two types of security investments in acquiring data, information and expertise, vis-a-vis deploying defense measures and detection tools, and derive formula for optimal allocations. We analyze cyber breach propagations between firms in a supply-chain, and demonstrate that large firms requiring contractors to show security rating by third-parties can be an effective way of reducing information gap in a supply chain. We present a model for the reliability (sharpness) of cybersecurity rating for firms, and show how the perceived reliability of cybersecurity rating affects the incentives for firms to increase their security investments.","PeriodicalId":416291,"journal":{"name":"IO: Firm Structure","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124217870","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Board diversity is one of the corporate governance mechanisms that has received greater attention in recent research studies concerned with investigating the relationships between corporate governance and firm performance. The King IV (2016) has advocated for, among other things, diversity in the composition of governing bodies for organisations. The relationship between board gender diversity and financial performance of firms listed on the Lusaka Stock Exchange in Zambia was the subject of this study. A panel data analysis approach was employed which involved cross sectional data for all listed companies on the Lusaka Stock Exchange for the period 2006 to 2016. The study used regression analysis as estimation technique to investigate the relationship between board gender diversity (surrogated by the number and proportion of females on the board of directors) and the three financial performance proxies (Return on assets (ROA), Return on equity (ROE) and Leverage). The overall findings were that board gender diversity positively affected firm performance and it explained 5%, 6% and 9% of the changes in ROA, ROE and leverage respectively. Further, the regression models explained a significant proportion of the variation in the ROA and leverage. This paper focused on Zambian companies and the findings contributed to the growing knowledge on the relationship between board gender diversity and corporate financial performance in developing and developed countries. The findings are of interest to policy makers, researchers, investors and corporate boards.
{"title":"Board Gender Diversity and Firm Performance: An Empirical Analysis of Panel Data from Companies Listed on the Lusaka Stock Exchange","authors":"Bryson Mumba","doi":"10.2139/ssrn.3061877","DOIUrl":"https://doi.org/10.2139/ssrn.3061877","url":null,"abstract":"Board diversity is one of the corporate governance mechanisms that has received greater attention in recent research studies concerned with investigating the relationships between corporate governance and firm performance. The King IV (2016) has advocated for, among other things, diversity in the composition of governing bodies for organisations. The relationship between board gender diversity and financial performance of firms listed on the Lusaka Stock Exchange in Zambia was the subject of this study. A panel data analysis approach was employed which involved cross sectional data for all listed companies on the Lusaka Stock Exchange for the period 2006 to 2016. The study used regression analysis as estimation technique to investigate the relationship between board gender diversity (surrogated by the number and proportion of females on the board of directors) and the three financial performance proxies (Return on assets (ROA), Return on equity (ROE) and Leverage). The overall findings were that board gender diversity positively affected firm performance and it explained 5%, 6% and 9% of the changes in ROA, ROE and leverage respectively. Further, the regression models explained a significant proportion of the variation in the ROA and leverage. This paper focused on Zambian companies and the findings contributed to the growing knowledge on the relationship between board gender diversity and corporate financial performance in developing and developed countries. The findings are of interest to policy makers, researchers, investors and corporate boards.","PeriodicalId":416291,"journal":{"name":"IO: Firm Structure","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-11-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123223389","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-10-31DOI: 10.21511/PPM.15(3-1).2017.06
E. Kuzmin
The estimation of transaction costs is a well-known methodological problem, the solution of which determines the possibility, among other things, to estimate the conditions for business operations. The growing complexity of the social and economic interaction emphasizes the special role of transaction costs in regulation of the stability condition. The article analyzes approaches to the determination of the essential characteristics of transaction costs. The scientific evidence of dividing of transaction costs into normal and recertative is provided. Their differentiation is connected to the impact of uncertainty and also the principal unavoidability of transaction costs regardless the efficiency of the economic mechanism and other factors. An important factor here is friction force - flexibility of the economic space. The growth of transaction costs that is observed with the increased uncertainty emphasizes only the revealed features in the friction force of the economic environment. All this led to the conclusion on the availability of a generalizing factor that estimates the conditions of exchange transactions. For this, the notion of transaction capacity was introduced; it expresses the cumulative impact of the external and internal conditions, which, this way or another, are understood by the specialists making the managerial decisions. The existence of some value of transaction costs when transaction is declined presupposes an important assumption that the transaction capacity has the same limits of dynamics. The obtained results allow us to build a function of transaction capacity, which shall be considered as a tool for risk-profile analysis.
{"title":"A Study on the Problems of the Structure of Transaction Costs","authors":"E. Kuzmin","doi":"10.21511/PPM.15(3-1).2017.06","DOIUrl":"https://doi.org/10.21511/PPM.15(3-1).2017.06","url":null,"abstract":"The estimation of transaction costs is a well-known methodological problem, the solution of which determines the possibility, among other things, to estimate the conditions for business operations. The growing complexity of the social and economic interaction emphasizes the special role of transaction costs in regulation of the stability condition. The article analyzes approaches to the determination of the essential characteristics of transaction costs. The scientific evidence of dividing of transaction costs into normal and recertative is provided. Their differentiation is connected to the impact of uncertainty and also the principal unavoidability of transaction costs regardless the efficiency of the economic mechanism and other factors. An important factor here is friction force - flexibility of the economic space. The growth of transaction costs that is observed with the increased uncertainty emphasizes only the revealed features in the friction force of the economic environment. All this led to the conclusion on the availability of a generalizing factor that estimates the conditions of exchange transactions. For this, the notion of transaction capacity was introduced; it expresses the cumulative impact of the external and internal conditions, which, this way or another, are understood by the specialists making the managerial decisions. The existence of some value of transaction costs when transaction is declined presupposes an important assumption that the transaction capacity has the same limits of dynamics. The obtained results allow us to build a function of transaction capacity, which shall be considered as a tool for risk-profile analysis.","PeriodicalId":416291,"journal":{"name":"IO: Firm Structure","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125346555","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract We consider a hybrid model at the intersection of the standard two-sided matching market as proposed by Gale and Shapley (1962) and a housing market as proposed by Shapley and Scarf (1974). Two sets of agents have to be matched in pairs to a common set of objects. Agents of one type have preferences that depend on not only the object they are matched to but also the agent of the other type matched to this object. The crucial difference lies in the fact that the common side is interpreted as an object and has no intrinsic preferences over the agents matched to it. We introduce a natural definition of the ownership of the objects that determines which agent owns the object he is matched to. Ownership restricts the objections of agents who are not owners and defines a notion of stability. We consider two natural ownership structures and show that stable matchings exist in both structures. The first ownership structure, i.e., one-side ownership, always gives ownership to agents of the same side. Even if this structure shares similarities with the classical two-sided matching framework, we show the following important difference: stable matchings and Pareto-efficient matchings can be disjoints, implying that the core can be empty. We also propose two subdomains of preferences, i.e., lexicographic and couple preferences, where core matchings exist in one-sided ownership structures. The second notion is joint ownership, where any reallocation of objects must be jointly agreed upon by the two agents initially assigned to them. As discussed in Morrill (2010), this notion is equivalent to Pareto-efficient matchings, and we discuss possible algorithms that can be used to check Pareto efficiency. Finally, we propose a general definition of ownership structures and show that one-sided ownerships are not the only ones that can guarantee the existence of stable matchings. To further investigate the link with the housing market literature, we also introduce an initial allocation to objects and define a core notion with respect to this initial allocation. We also show that in contrast to the standard setting, this housing market core can be empty. However, we show that in this housing market framework, there always exists a Pareto-efficient matching that is not blocked by any coalition of size two. In both settings, pairwise stability is the only minimal requirement that one can ensure.
{"title":"Matching with Ownership","authors":"Julien Combe","doi":"10.2139/ssrn.3071879","DOIUrl":"https://doi.org/10.2139/ssrn.3071879","url":null,"abstract":"Abstract We consider a hybrid model at the intersection of the standard two-sided matching market as proposed by Gale and Shapley (1962) and a housing market as proposed by Shapley and Scarf (1974). Two sets of agents have to be matched in pairs to a common set of objects. Agents of one type have preferences that depend on not only the object they are matched to but also the agent of the other type matched to this object. The crucial difference lies in the fact that the common side is interpreted as an object and has no intrinsic preferences over the agents matched to it. We introduce a natural definition of the ownership of the objects that determines which agent owns the object he is matched to. Ownership restricts the objections of agents who are not owners and defines a notion of stability. We consider two natural ownership structures and show that stable matchings exist in both structures. The first ownership structure, i.e., one-side ownership, always gives ownership to agents of the same side. Even if this structure shares similarities with the classical two-sided matching framework, we show the following important difference: stable matchings and Pareto-efficient matchings can be disjoints, implying that the core can be empty. We also propose two subdomains of preferences, i.e., lexicographic and couple preferences, where core matchings exist in one-sided ownership structures. The second notion is joint ownership, where any reallocation of objects must be jointly agreed upon by the two agents initially assigned to them. As discussed in Morrill (2010), this notion is equivalent to Pareto-efficient matchings, and we discuss possible algorithms that can be used to check Pareto efficiency. Finally, we propose a general definition of ownership structures and show that one-sided ownerships are not the only ones that can guarantee the existence of stable matchings. To further investigate the link with the housing market literature, we also introduce an initial allocation to objects and define a core notion with respect to this initial allocation. We also show that in contrast to the standard setting, this housing market core can be empty. However, we show that in this housing market framework, there always exists a Pareto-efficient matching that is not blocked by any coalition of size two. In both settings, pairwise stability is the only minimal requirement that one can ensure.","PeriodicalId":416291,"journal":{"name":"IO: Firm Structure","volume":"98 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114718291","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We study the impact of gender on asset allocation recommendations. Graduate business students and professional wealth managers are randomly assigned a male or female client. Participants recommend an allocation and choose an allocation for themselves. Male students choose a riskier allocation than female students, consistent with existing evidence of a gender difference in risk tolerance, and recommend a riskier allocation. In contrast, male and female wealth managers choose and recommend the same allocation, indicating that male and female finance professionals feature similar risk preferences. In both samples, a subject's allocation choice is the strongest predictor of the recommendation provided.
{"title":"Gender, Risk Tolerance, and False Consensus in Asset Allocation Recommendations","authors":"Nicolas P. B. Bollen, S. Posavac","doi":"10.2139/ssrn.3059896","DOIUrl":"https://doi.org/10.2139/ssrn.3059896","url":null,"abstract":"We study the impact of gender on asset allocation recommendations. Graduate business students and professional wealth managers are randomly assigned a male or female client. Participants recommend an allocation and choose an allocation for themselves. Male students choose a riskier allocation than female students, consistent with existing evidence of a gender difference in risk tolerance, and recommend a riskier allocation. In contrast, male and female wealth managers choose and recommend the same allocation, indicating that male and female finance professionals feature similar risk preferences. In both samples, a subject's allocation choice is the strongest predictor of the recommendation provided.","PeriodicalId":416291,"journal":{"name":"IO: Firm Structure","volume":"47 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133266495","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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