The Library
Organizational risk taking : adaptation versus variable risk preferences
Tools
Denrell, Jerker (2008) Organizational risk taking : adaptation versus variable risk preferences. Industrial and Corporate Change, Volume 17 (Number 3). pp. 427-466. doi:10.1093/icc/dtn007 ISSN 0960-6491.
Research output not available from this repository.
Request-a-Copy directly from author or use local Library Get it For Me service.
Official URL: http://dx.doi.org/10.1093/icc/dtn007
Abstract
The observed association between performance and organizational risk taking has usually been attributed to the influence of performance on risk preferences. Here I show how a simple model of adaptation, which only assumes that organizations avoid activities with poor past performance, can explain the empirically observed U-shaped association between risk and return. The model also makes novel predictions, which are shown to be consistent with the data. The findings suggest that risk taking may be a by-product of adaptation rather than a deliberate choice motivated by variable risk preferences.
Item Type: | Journal Article | ||||||
---|---|---|---|---|---|---|---|
Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management H Social Sciences > HF Commerce H Social Sciences > HM Sociology |
||||||
Divisions: | Faculty of Social Sciences > Warwick Business School > Behavioural Science Faculty of Social Sciences > Warwick Business School |
||||||
Library of Congress Subject Headings (LCSH): | Performance, Risk management , Risk assessment , Organizational behavior | ||||||
Journal or Publication Title: | Industrial and Corporate Change | ||||||
Publisher: | Oxford University Press | ||||||
ISSN: | 0960-6491 | ||||||
Official Date: | 3 June 2008 | ||||||
Dates: |
|
||||||
Volume: | Volume 17 | ||||||
Number: | Number 3 | ||||||
Number of Pages: | 39 | ||||||
Page Range: | pp. 427-466 | ||||||
DOI: | 10.1093/icc/dtn007 | ||||||
Status: | Peer Reviewed | ||||||
Publication Status: | Published | ||||||
Access rights to Published version: | Restricted or Subscription Access |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |