We model unilateral auditor liability under the assumption that the auditor has an aversion to uncertainty about … will tend to induce excessive care. A liability cap is then advisable. Even with low incentives to sue, an ambiguity …-averse auditor exerts excessive care when damage payments are sufficiently large. With strict liability, there is no ambiguity …

behaviors within three dimensions: under risk, over time and regarding other people. A new perspective on two underlying …

This paper studies how auditors' risk aversion shapes the audit market and how it interacts with legal liability. The … more risk-averse auditors disproportionately benefit from a reduction in liability risk. However, whether audit standards … main pillar of the analysis is that the relation between risk aversion and the supplied audit quality is generally non …

We study the correlation of choice under risk in Holt-Laury lotteries for gains and losses with gender, the use of … the digit ratio (2D:4D) in more than 200 subjects. In males, salivary testosterone is negatively correlated with risk … aversion for gains only. In females, salivary cortisol is positively correlated with risk aversion for gains only. No other …

Since business activities are generally subject to uncertainties, dealing with risk is essential. Principals are … generally assumed to maximize their expected value and therefore act in a risk-neutral manner by diversifying their portfolio … human behavior toward risky decision making. The review first defines risk-taking behavior and distinguishes between …