scholarly journals Life-Cycle Risk-Taking with Personal Disaster Risk

2021 ◽  
Author(s):  
Fabio C. Bagliano ◽  
Carolina Fugazza ◽  
Giovanna Nicodano
Keyword(s):  
Author(s):  
Evan Su Wei Shang ◽  
Eugene Siu Kai Lo ◽  
Zhe Huang ◽  
Kevin Kei Ching Hung ◽  
Emily Ying Yang Chan

Although much of the health emergency and disaster risk management (Health-EDRM) literature evaluates methods to protect health assets and mitigate health risks from disasters, there is a lack of research into those who have taken high-risk behaviour during extreme events. The study’s main objective is to examine the association between engaging in high-risk behaviour and factors including sociodemographic characteristics, disaster risk perception and household preparedness during a super typhoon. A computerized randomized digit dialling cross-sectional household survey was conducted in Hong Kong, an urban metropolis, two weeks after the landing of Typhoon Mangkhut. Telephone interviews were conducted in Cantonese with adult residents. The response rate was 23.8% and the sample was representative of the Hong Kong population. Multivariable logistic regressions of 521 respondents adjusted with age and gender found education, income, risk perception and disaster preparedness were insignificantly associated with risk-taking behaviour during typhoons. This suggests that other factors may be involved in driving this behaviour, such as a general tendency to underestimate risk or sensation seeking. Further Health-EDRM research into risk-taking and sensation seeking behaviour during extreme events is needed to identify policy measures.


2015 ◽  
Vol 57 (2) ◽  
pp. 465-497 ◽  
Author(s):  
Ahsan Habib ◽  
Mostafa Monzur Hasan

Economies ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 111
Author(s):  
Minhas Akbar ◽  
Ahsan Akbar ◽  
Muhammad Azeem Qureshi ◽  
Petra Poulova

The influence of market sentiments on the bankruptcy risk propensity of firms has been extensively explored in the literature. However, less attention has been paid to whether the corporate life cycle plays any role in this nexus. The purpose of this research is to unveil how the corporate bankruptcy risk propensity responds to market sentiments, and whether this sentiments–risk relationship varies over different stages of the corporate life cycle. Using a sample of 301 Pakistani non-financial listed firms for 2005–2014, we employ two-step generalized method of moments (GMM) regression estimation to address the issue of endogeneity. Empirical evidence reveals that managers tend to escalate a firm’s bankruptcy risk during high market sentiments. Further analysis indicates that during the period of positive market sentiments, introduction stage firms prefer to assume the highest bankruptcy risk followed by decline and growth firms, while mature firms continue to be risk-averse. This research contributes to the corporate finance literature by suggesting that managerial risk-taking is influenced by market sentiments and corporate managers show a different attitude towards risk at different stages of the corporate life cycle. Therefore, to ensure enterprise sustainability, capital market regulators should have a robust risk management framework in place to discipline the excessive risk-taking by firm managers over different stages of the corporate life cycle. Moreover, investors and creditors shall take into consideration the respective life cycle stage of the firm to minimize the risk exposure of their investment portfolios. Our results are robust to alternate econometric specifications and alternate variable specifications.


2008 ◽  
Vol 9 (3) ◽  
pp. 321-344 ◽  
Author(s):  
T. SCOTT FINDLEY ◽  
FRANK N. CALIENDO

AbstractThe Save More Tomorrow™ (or SMarT) plan has proven effective in raising employee saving rates and appears to be popular among participants and the media. An important question has remained on the minds of economists despite this success: just how close does the prescriptive SMarT plan come to approximating the normative life-cycle/permanent-income consumption rule? That is, does it pay (in a lifetime utility sense) to participate in a SMarT plan? We attempt to provide some rigorous answers to this question by employing a quantitative-theoretic model to perform dynamic welfare analysis, and our results tend to support the SMarT plan as a decent first approximation to the life-cycle/permanent-income rule. We also consider the problem of an altruistic employer seeking to maximize the lifetime utility of employees by appropriately choosing the default SMarT parameters in the face of employee heterogeneity in saving rates and uncertainty about whether they will actually stick with the plan. The employer's problem is augmented to include employee heterogeneity concerning risk taking, and we also consider the possibility that SMarT saving may be met with increased borrowing.


2014 ◽  
Vol 14 (3) ◽  
pp. 293-314 ◽  
Author(s):  
WERNER D. KRISTJANPOLLER ◽  
JOSEPHINE E. OLSON

AbstractThis paper contributes to research on defined contribution (DC) retirement plans by examining how financial knowledge and demographic factors influenced Chile's pension holders' choice between a default life-cycle retirement plan and active management. About one third of Chileans held default funds in 2009; younger people, men, people with lower incomes, and people with low financial knowledge were more likely to choose the default. For active investors, we examined what variables influenced their choice. Nearly three quarters of active investors chose more risky funds that the defaults for their age group. However, risk taking tended to decrease with age and to increase with income, financial knowledge and risk tolerance.


2017 ◽  
pp. 141-162
Author(s):  
Jacob A. Bikker ◽  
Dirk W.G.A. Broeders ◽  
David A. Hollanders ◽  
Eduard H. M. Ponds

2017 ◽  
Vol 22 (4) ◽  
pp. 475-496 ◽  
Author(s):  
Joshua Trigg ◽  
Kirrilly Thompson ◽  
Bradley Smith ◽  
Pauleen Bennett

2020 ◽  
Author(s):  
Fabio C. Bagliano ◽  
Carolina Fugazza ◽  
Giovanna Nicodano

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