This study examines how experiencing a pandemic affects household investment behaviors. By leveraging cross-state variations in the H1N1 mortality rate in 2009, our difference-in-differences analysis reveals interesting findings. Although the pandemic does not significantly affect stock market...

I show that stochastic contracts generate powerful incentives when agents suffer from probability distortion. When implementing these contracts, the principal can target probability distortions in order to inflate the agent's perceived benefits of exerting high levels of effort. This novel...

This paper studies the relationship between risk propensity, education and financial literacy. The results of the empirical investigation confirm the importance of the key explanatory variables of education and financial competence. Since they are both included in the model, the different roles...

Making financial decisions under risk and uncertainty has become part of everyday life. Traditional finance explores the objective side of risk, analysing the decisions made by perfectly rational individuals in efficient market conditions. Behavioural finance seeks to connect theory with...

Studies have frequently found that women are more risk averse than men. In this paper, we depart from usual practice in economics that treats risk attitude as a primitive, and instead adopt a neuroeconomic approach where risk attitude is determined by the reference point which can be easily...

This study examines how experiencing a pandemic affects household investment behaviors. By leveraging cross-state variations in the H1N1 mortality rate in 2009, our difference-in-differences analysis reveals interesting findings. Although the pandemic does not significantly affect stock market...

We investigate how digital transformation affects corporate risk-taking by using the data of China's A-share listed companies from 2012 to 2021, and examines the mediating role of managerial ability. The results demonstrate that digital transformation is significantly and positively related to...

Luckman et al. (2018) experimentally tested the conjecture that a single model of risky intertemporal choice can account for both risky and intertemporal choices, and under the conditions of their experiment, found evidence supporting it. Given the existing literature, that is a remarkable...

This paper reexamines the question of gender differences in financial relative risk aversion using updated methods and data. Specifically, the paper revisits the 1998 work "Are women more risk averse?" by Jianakoplos and Bernasek, suggests refinements in their model in relation to the database...

The fundamental role of the banking sector in society and the economy necessitates extensive regulation and supervision. Given that increased risk-taking behavior can undermine the stability of the banking sector, it is crucial to identify the factors affecting banks' risk-taking. This study...

While the COVID-19 pandemic has intensified counter-urban migration trends globally, with rural areas often portrayed as ideal havens, the post-migration realities and risks faced by rural in-migrants remain understudied. Addressing this research gap, this research investigates the neighborhood...

The changing climate requires businesses to take adaptive action. A key prerequisite for optimal adaptive action is that businesses are aware of the climate risks that they face. This, in turn, necessitates that businesses do not base their risk perception solely on prior experience, or a lack...

In this study, we focus on managerial incentives provided by debt-like compensation and further investigate whether and to what extent such managerial incentives may affect CEOs' decisions on risk management. Building on cumulative prospect theory and instrumental stakeholder theory, we propose...

Personality drives human decision-making. Research on corporate research and development (R&D), however, typically considers strategic decision-making to be independent of the decisionmaker’s personality traits. This study investigates the impact of CEO personality on scaling activities in...

Developing reliable and practicable measures of economic preferences is a crucial task for empirical economic research with high value for both theory and applications. Here, we present results from a first comprehensive "behavioral validation analysis" of the Global Preference Survey Module...

Developing reliable and practicable measures of economic preferences is a crucial task for empirical economic research with high value for both theory and applications. Here, we present results from a first comprehensive “behavioral validation analysis” of the Global Preference Survey Module...

In this paper, I document that investor attention negatively predicts betting against beta returns. Using Google Search Volumes toward US market indices as my proxy to attention, I find that this relation holds after controlling for competitive factors and different search terminologies and in...

This article investigates the relationship between Inter-Korean geopolitical risk (IKGPR) and South Korean firms' risk-taking in the context of highly political tensions in the Korean peninsula. Using a recently developed news-based index of geopolitical risk, our empirical analysis shows an...

Qualitative self-assessments of economic preferences have recently gained popularity, often supported by experimental validation, a method that links them to choices in incentivized elicitations. We illustrate theoretically that experimental validation may fail to produce reliable new measures....

We present a theory of context-dependent risk preferences under which within-state payoff comparisons and regret aversion shape decisions. Defining the attraction and compromise effect in reference to a state-space-based description of the choice problem, we show that our theory can account for...

Economic research on gender gaps has focused on variation based on the binary classification of “men” and “women”. We explore whether a self-reported continuous measure of gender identity (CGI) explains variation in economic decisions and outcomes beyond the relationship with binary...

I analyze Dutch survey data that contains rich information on political preferences, personality traits, and socioeconomic background. I show that voting and political opinions are better predicted by personality and economic preferences than by a rich set of socioeconomic characteristics....