concept

Risk-Taking

Facts (13)

Sources

Biases in Behavioral Finance - World Scholars Review worldscholarsreview.org Daria Azhyshcheva, Vi Dinh, Aanya Gothal, Abhinav Sisodiya · World Scholars Review Sep 15, 2024 6 facts

claimSeo et al. (2010) examined the role of affect (pleasant or unpleasant feelings) and decision frames (gains or losses) in risk-taking during stock investment simulations in the New England area.

claimMassa and Simonov (2002) observed that investors react to prior gains by increasing risk-taking, as measured by trading actions and market trends.

claimWang, Sheng, and Yang (2013) demonstrated that optimism bias, when combined with incentive contracts, results in increased risk-taking and poorer portfolio performance.

referenceSeo, M., and Lee, H. published 'Affect and the Framing Effect within Individuals over Time: Risk Taking in a Dynamic Investment Simulation' in the Academy of Management Journal in 2010.

claimSeo et al. (2010) found that feelings may intensify the framing effect of loss toward a greater degree of risk-taking, though the framing effect only partially explained risk-taking behavior.

claimMetilda (2013) concluded that hindsight bias prevents investors from thinking rationally and leads to excessive risk-taking, which puts customer portfolios in dangerous circumstances.

Financial Decision-Making: Psychology, Behavior & Risk Insights climbproject.org.uk CLIMB Project Aug 11, 2025 2 facts

claimOverconfidence bias leads to excessive risk-taking in financial choices.

claimCultural factors shape attitudes toward risk, with some cultures emphasizing caution over risk-taking.

The Impact of Cognitive Biases on Professionals' Decision-Making frontiersin.org Frontiers in Psychology 2 facts

referenceJames G. March and Zur Shapira published a 1987 paper in Management Science titled 'Managerial perspectives on risk and risk taking', which examines how managers perceive and engage in risk.

claimInvestor overconfidence leads to increased risk-taking and excessive trading, which results in poor financial performance due to transaction costs and losses, as supported by research from Chuang and Lee (2006), Odean (1999), Statman et al. (2006), and Glaser and Weber (2007).

An Exploratory Study of the Wealthy's Investment Beliefs ... financialplanningassociation.org Journal of Financial Planning Mar 1, 2025 1 fact

referenceM. Kruger, J. E. Grable, and S. S. Fallaw published 'An Evaluation of the Risk-Taking Characteristics of Affluent Households' in the Journal of Financial Planning in 2017.

Introduction to children's attachment - NCBI - NIH ncbi.nlm.nih.gov National Institute for Health and Care Excellence 1 fact

claimThe term 'attachment difficulties' is sometimes conflated with other developmental problems, including aggression, oppositional or defiant behaviors, hyperactivity, poor concentration, risk-taking, lying, stealing, and manipulative behaviors.

The Children and Screens Guide for Child Development and Media ... childrenandscreens.org Children and Screens 1 fact

claimDr. Tracy Asamoah states that risk-taking is a normal part of adolescent development and identity formation, and these behaviors are now frequently occurring in online environments.