search query: @indexterm RISK MEASUREMENT / total: 141
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| Author: | Fiegenbaum, A. Thomas, H. |
| Title: | Attitudes toward risk and the risk-return paradox : Prospect theory explanations. |
| Journal: | Academy of Management Journal
1988 : MAR, VOL. 31:1, p. 85-106 |
| Index terms: | DECISION THEORY RISK MEASUREMENT PERFORMANCE MEASUREMENT |
| Language: | eng |
| Abstract: | Recent research in behavioral decision theory and prospect theory suggests that individual use target, or reference, points in evaluating risky choices. Indeed, the evidence suggests that when returns are below target, most individuals appear to be risk seeking and that when returns are above target, most appear to be risk averse.This study's results, based on extensive data for industrial firms for a wide range of periods, shows that when a target return on equity value is introduced at either the firm or industry level, risk and return are negatively correlated for below-target firms and positively correlated for above-target firms regardless of the period. |
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