Incentive Systems for Risky Investment Decisions under Unknown Preferences: Ortner et al. Revisited

2017 ◽  
Author(s):  
Josef Schosser
Keyword(s):  
Investment Decisions ◽  
Incentive Systems ◽  
Risky Investment

scholarly journals Comment on Schosser (2018) “Incentive Systems for Risky Investment Decisions under Unknown Preferences: Ortner et al. Revisited”

Games ◽  
2018 ◽  
Vol 9 (4) ◽  
pp. 93 ◽  
Author(s):  
Julia Ortner
Keyword(s):  
Performance Measures ◽  
Cost Allocation ◽  
Investment Decisions ◽  
The State ◽  
Alternative Solution ◽  
Incentive Systems ◽  
Relative Benefit ◽  
Specific Subset ◽  
Risky Investment ◽  
Benefit Cost

Schosser (Games 2018, 9, 26) claims to have found an alternative solution to design appropriate performance measures than the State-Contingent Relative Benefit Cost Allocation (RBCA) introduced by Ortner et al. (Management Accounting Research 2017, 36, 43–50), which he states is simpler and more powerful. However, this note reveals that the performance measures proposed by Schosser are, in fact, a specific subset of State-Contingent Robust RBCA performance measures and thus do not represent a new solution.

scholarly journals Incentive systems for risky investment decisions under unknown preferences

2017 ◽  
Vol 36 ◽  
pp. 43-50 ◽  
Author(s):  
Julia Ortner ◽  
Louis Velthuis ◽  
David Wollscheid
Keyword(s):  
Investment Decisions ◽  
Incentive Systems ◽  
Risky Investment

scholarly journals Reply to Ortner

Games ◽  
2018 ◽  
Vol 9 (4) ◽  
pp. 94
Author(s):  
Josef Schosser
Keyword(s):  
Investment Decisions ◽  
Incentive Systems ◽  
Risky Investment

I address the comments made by Ortner (Games 9(4): 93, 2018) in relation to my note “Incentive Systems for Risky Investment Decisions Under Unknown Preferences: Ortner et al. Revisited” (Games 9(2): 26, 2018).

scholarly journals EFEK INTERAKSI LITERASI KEUANGAN DALAM KEPUTUSAN INVESTASI: PENGUJIAN BIAS-BIAS PSIKOLOGI

2021 ◽  
Vol 10 (1) ◽  
pp. 36
Author(s):  
Wendy Wendy
Keyword(s):  
Financial Literacy ◽  
Investment Decisions ◽  
Interaction Model ◽  
Investor Behavior ◽  
Disposition Effect ◽  
Herding Behavior ◽  
Risky Investment ◽  
Managerial Implications ◽  
Comprehensive Manner ◽  
Positive Effect

                                                        ABSTRACTThis research aims to analyze psychological biases that occur when investors make risky investment decisions. There are five behavioral factors analyzed (herding, overconfidence, disposition effect, conservatism, and availability). Financial literacy is used as moderator in analyzing the effect of those bahaviors towards risky investment decisions. This research examines four econometric equations in explaining financial literacy as a moderator. Interaction effect testing is carried out using moderating variable regression. The results show that psychological biases occur in making risky investment decisions. Herding behavior, overconfidence, disposition effect, and conservatism show a positive effect, while availability does not show a significant effect. Testing on the interaction model finds that financial literacy is able to reduce these psychological biases. This finding also explains the managerial implications that investors with high levels of financial literacy have the potential to experience relatively low psychological biases compared to investors with limited levels of financial literacy. In terms of limitations, this research uses a questionnaire survey that has not been able to reveal aspects of investor behavior in a comprehensive manner. In addition, the number of respondents who are more dominated by beginner investors also adds to the limitations in carrying out the generalization.                                                    ABSTRAKRiset ini bertujuan untuk menganalisis bias-bias psikologi yang terjadi ketika pemodal mengambil keputusan investasi berisiko. Terdapat lima faktor perilaku yang dianalisis, yaitu perilaku herding, overconfidence, disposition effect, conservatism, dan availability. Literasi keuangan digunakan sebagai pemoderasi dalam menganalisis pengaruh faktor-faktor keperilakuan tersebut terhadap keputusan investasi berisiko. Riset ini menguji empat persamaan ekonometrika dalam menjelaskan peran literasi keuangan sebagai pemoderasi. Pengujian efek interaksi dilakukan dengan menggunakan regresi variabel moderasi. Hasil analisis menunjukkan bahwa bias-bias psikologi terjadi dalam pengambilan keputusan investasi berisiko. Perilaku herding, overconfidence, disposition effect, dan conservatism menunjukkan pengaruh positif terhadap pengambilan keputusan investasi berisiko, sementara bias availability tidak menunjukkan pengaruh yang bermakna dalam riset ini. Pengujian pada model interaksi menemukan bahwa literasi keuangan mampu mereduksi bias-bias psikologi tersebut. Temuan ini sekaligus menjelaskan implikasi manajerial bahwa pemodal dengan tingkat literasi keuangan yang baik berpotensi mengalami bias-bias psikologi yang relatif lebih rendah dibandingkan pemodal dengan tingkat lietrasi keuangan yang terbatas. Dari sisi keterbatasan, riset ini menggunakan survei kuesioner yang belum mampu mengungkap aspek perilaku pemodal secara komprehensif. Selain itu, jumlah responden yang lebih didominasi oleh pemodal pemula juga menambah keterbatasan dalam melakukan generalisasi hasil penelitian.

scholarly journals Can longer gaze duration determine risky investment decisions? An interactive perspective

2021 ◽  
Vol 14 (4) ◽  
Author(s):  
Yiheng Wang ◽  
Yanping Liu
Keyword(s):  
Diffusion Model ◽  
Investment Decisions ◽  
Expected Value ◽  
Current Experiment ◽  
Choice Process ◽  
The Gaze ◽  
Risky Investment ◽  
Underlying Mechanisms ◽  
Computational Difficulty ◽  
Decision Difficulty

Can longer gaze duration determine risky investment decisions? Recent studies have tested how gaze influences people’s decisions and the boundary of the gaze effect. The current experiment used adaptive gaze-contingent manipulation by adding a self-determined option to test whether longer gaze duration can determine risky investment decisions. The results showed that both the expected value of each option and the gaze duration influenced people’s decisions. This result was consistent with the attentional diffusion model (aDDM) proposed by Krajbich et al. (2010), which suggests that gaze can influence the choice process by amplify the value of the choice. Therefore, the gaze duration would influence the decision when people do not have clear preference.The result also showed that the similarity between options and the computational difficulty would also influence the gaze effect. This result was inconsistent with prior research that used option similarities to represent difficulty, suggesting that both similarity between options and computational difficulty induce different underlying mechanisms of decision difficulty.

scholarly journals Intrinsic and extrinsic effects on behavioral tax biases in risky investment decisions

2016 ◽  
Vol 56 ◽  
pp. 218-231 ◽  
Author(s):  
Martin Fochmann ◽  
Kristina Hemmerich ◽  
Dirk Kiesewetter
Keyword(s):  
Investment Decisions ◽  
Risky Investment ◽  
Extrinsic Effects

Unanticipated effects of restricted stock on managers' risky investment decisions

2017 ◽  
Vol 38 ◽  
pp. 106-112
Author(s):  
Anna M. Rose ◽  
Jacob M. Rose ◽  
Ikseon Suh ◽  
Joseph C. Ugrin
Keyword(s):  
Investment Decisions ◽  
Risky Investment ◽  
Restricted Stock
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