Fourfold Pattern of Undertaking Risky Environmental Projects

MIKE, FUNG (2015) Fourfold Pattern of Undertaking Risky Environmental Projects. In: Third International Conference on Advances in Applied Science and Environmental Technology - ASET 2015, 28-29 December, 2015, Bangkok, Thailand.

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Abstract

Majority of past studies on managerial risk-taking have examined the determinants of risk-taking from the agency perspective. However, a substantial body of evidence has shown that Expected Utility Theory (EUT) provides inadequate description for decision-making under risky prospects. This study proposes an empirical framework for investigating managerial incentives to undertake risky environmental projects. Such incentives are assumed to follow the fourfold pattern of risk-attitude as implied by Cumulative Prospect Theory (CPT) – risk-taking is higher over low-probability reference gains or high-probability reference losses, and is lower over high-probability reference gains or low-probability reference losses. Reference gains and losses are respectively defined as positive and negative deviations from peers’ performance

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Managerial risk-taking; Environmental projects; Prospect theory.
Depositing User: Mr. John Steve
Date Deposited: 03 Apr 2019 11:56
Last Modified: 03 Apr 2019 11:56
URI: http://publications.theired.org/id/eprint/1122

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