208
Views
1
CrossRef citations to date
0
Altmetric
Original Articles

An investigation into risk propensity in bull and bear markets

Pages 789-804 | Received 23 Oct 2009, Accepted 13 Nov 2009, Published online: 12 Apr 2010

References

  • Adams , J. 1995 . Risk , London : UCL Press .
  • Arrow , K.J. 1963 . Uncertainty and the welfare economics of medical care . American Economic Review , 53 : 941 – 73 .
  • Blum , S.H. 1961 . The desire for security . Journal of Educational Psychology , 52 : 317 – 21 .
  • Cheng , P.Y.K. 2007 . The trader interaction effect on the impact of overconfidence on trading performance: An empirical study . The Journal of Trading , 2 : 50 – 63 .
  • Cho , J. and Lee , J. 2006 . An integrated model of risk and risk‐reducing strategies . Journal of Business Research , 59 : 112 – 20 .
  • Das , T.K. and Teng , B.‐S. 1999 . Cognitive biases and strategic decision processes and integrative perspective . Journal of Management Studies , 26 : 757 – 78 .
  • De Raad , B. 1993 . “ Have trait psychologists been ignorant of context? Commentary on the chapter by N.S. Endler ” . In Foundations of personality , Edited by: Hettema , J. and Deary , I.J. 269 – 73 . Dordrecht : Kluwer .
  • Epstein , S. 1997 . This I have learned from over 40 years of personality research . Journal of Personality , 65 : 3 – 32 .
  • Fama , E.F. 1991 . Efficient capital markets II . Journal of Finance , 46 : 1575 – 617 .
  • Fellner , G. and Maciejovsky , B. 2002 . Risk attitude and market behavior: Evidence from experimental asset markets . Journal of Economic Psychology , 28 : 338 – 50 .
  • Fischoff , B. , Lichtenstein , S. , Slovic , P. , Derby , S.L. and Keeney , R.L. 1981 . Acceptable risk , Cambridge : Cambridge University Press .
  • Goldberg , L.R. 1999 . “ A broad‐bandwidth, public‐domain, personality inventory measuring the lower‐level facets of several five‐factor models ” . In Personality psychology in Europe , Edited by: Mervielde , I. , Deary , I.J. , de Fruyt , F. and Ostendorf , F. Vol. 7 , 7 – 28 . Tilburg : Tilburg University Press .
  • Goldberg , L.R. , Johnson , J.A. , Eber , H.W. , Hogan , R. , Ashton , M.C. , Cloninger , C.R. and Gough , H.C. 2006 . The international personality item pool and the future of public‐domain personality measures . Journal of Research in Personality , 40 : 84 – 96 .
  • Herriott , P. 1989 . Assessment and selection in organisations , Chichester : Wiley .
  • Hogan , R. , Johnson , J.A. and Briggs , S.R. 1997 . Handbook of personality psychology , San Deigo, CA : Academic Press .
  • Johnson , J.A. 1997 . Seven social performance scales for the California Psychological Inventory . Human Performance , 10 : 1 – 30 .
  • Kahneman , D. 2003 . A perspective on judgment and choice: Mapping bounded rationality . American Psychologist , 58 : 697 – 720 .
  • Kahneman , D. , Knetsch , J.L. and Thaler , R.H. 1990 . Experimental tests of the endowment effect and the coase theorem . Journal of Political Economy , 98 : 1325 – 48 .
  • Kahneman , D. and Lovallo , D. 1993 . Timid choices and bold forecasts: A cognitive perspective on risk‐taking . Management Science , 39 : 17 – 31 .
  • Kahneman , D. , Slovic , P. and Tversky , A. 1982 . Judgment under uncertainty: Heuristics and biases , New York : Cambridge University Press .
  • Kahneman , D. and Tversky , A. 1979 . Prospect theory: An analysis of decision under risk . Econometrica , 47 : 263 – 92 .
  • Lampenius , N. and Zickar , M.J. 2005 . Development and validation of a model and measure of financial risk‐taking . Journal of Behavioral Finance , 6 : 129 – 43 .
  • List , J.A. 2004 . Neoclassical theory versus prospect theory: Evidence from the marketplace . Econometrica , 72 : 615 – 25 .
  • MacCrimmon , K.R. and Wehrung , D.A. 1984 . The characteristics of risk taking executives . Management Science , 36 : 422 – 35 .
  • Markowitz , H. 1952 . The utility of wealth . Journal of Political Economy , 2 : 151 – 8 .
  • Mischel , W. 1968 . Personality and assessment , New York : Wiley .
  • Miskel , C. 1974 . Intrinsic, extrinsic and risk propensity factors in the work attitudes of teachers, educational administrators, and business managers . Journal of Applied Psychology , 54 : 339 – 43 .
  • Nicholson , N. , Soane , E. , Fenton‐O’Creevy , M. and Willman , P. 2005 . Domain specific risk taking and personality . Journal of Risk Research , 8 : 157 – 76 .
  • Odean , T. 1998 . Volume, volatility, price, and profit when all traders are above average . The Journal of Finance , 53 : 1887 – 934 .
  • Pennings , J.M. and Smidts , A. 2000 . Assessing the construct validity of risk attitude . Management Science , 46 : 1337 – 48 .
  • Plott , C.R. 1996 . “ Rational individual behavior in markets and social choice processes ” . In The Rational Foundations of Economic Behavior , Edited by: Arrow , K.J. , Colombatto , E. , Perlman , M. and Schmidt , C. 225 – 50 . London : MacMillan .
  • Prechter , R.R. and Parker , W.D. 2007 . The financial/economic dichotomy in social behavioral dynamics: The socionomic perspective . The Journal of Behavioural Finance , 8 : 84 – 108 .
  • Rabin , M. 2000 . Risk aversion and expected‐utility theory: A calibration theorem . Econometrica , 68 : 1281 – 92 .
  • Rabin , M. and Thaler , R.H. 2001 . Anomalies: Risk aversion . Journal of Economic Perspectives , 15 : 219 – 32 .
  • Schoemaker , P.J.H. 1990 . Are risk‐attitudes related across payoff domains and response modes? . Management Science , 36 : 1451 – 63 .
  • Scott , R.C. and Horvath , P.A. 1980 . On the direction of preference for moments of higher order than the variance . Journal of Finance , 35 : 915 – 9 .
  • Shapira , Z. and Venezia , I. 2000 . Patterns of behaviour of professionally managed and independent investors . Journal of Banking and Finance , 25 : 1573 – 87 .
  • Shefrin , H. 2000 . Beyond greed and fear: Understanding behavioral finance and the psychology of investing , Boston, MA : Harvard Business School Press .
  • Shleifer , A. 2000 . Inefficient markets: An introduction to behavioral finance , Oxford : Oxford University Press .
  • Sitkin , S.B. and Weingart , L.R. 1995 . Determinants of risky decision‐making behaviour: A test of the mediating role of risk perceptions and propensity . Academy of Management Journal , 38 : 1573 – 92 .
  • Slovic , P. 1972 . Psychological study of human judgment: Implications for investment decision making . The Journal of Finance , 27 : 4
  • Slovic , P. , Fischhoff , B. and Lichtenstein , S. 1981 . Perceived risk: Psychological factors and social implications . Proceedings of the Royal Society of London , 376 : 17 – 34 .
  • Sornette , D. 2003 . Critical market crashes . Physics Reports , 378 : 1 – 98 .
  • Stewart , W.H. and Roth , P.L. 2001 . Risk propensity differences between entrepreneurs and managers: A meta‐analytic review . Journal of Applied Psychology , 86 : 145 – 53 .
  • Thaler , R.H. 1980 . Toward a positive theory of consumer choice . Journal of Economic Behavior & Organization , 1 : 39 – 60 .
  • Thaler , R.H. 1993 . Advances in behavioral finance , New York : Russell Sage Foundation .
  • Tversky , A. and Kahneman , D. 1974 . Judgment under uncertainty: Heuristics and biases . Science , 185 : 1124 – 31 .
  • Tversky , A. and Kahneman , D. 1981 . The framing of decisions and the psychology of choice . Science , 211 : 453 – 8 .
  • Van Mechelen , I. and De Raad , B. 1999 . Editorial: Personality and situations . European Journal of Personality , 13 : 333 – 6 .
  • Von Neumann , J. and Morgenstern , O. 1947 . Theory of games and economic behaviour. , 2nd ed. , Princeton, NJ : Princeton University Press .
  • Weber , E.U. , Blais , A. and Betz , N.E. 2002 . A domain‐specific risk‐attitude scale: Measuring risk perceptions and risk behaviors . Journal of Behavioral Decision Making , 15 : 263 – 90 .

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.