RISK AND RETURN IN ORGANIZATIONAL DECISION MAKING.

Content Provider	Scilit
Author	McNamara, Gerry Bromiley, Philip
Copyright Year	1999
Description	Examining the association between managerial assessments of risk and expected return using nonexperimental data from specific commercial lending decisions, we found that risk-return associations depended on the measures used. However, with a return measure that accounted for the expected costs of riskier decisions, risk and return were negatively related. We also found evidence of conservatism in managers' adjusting to new information regarding the riskiness of decisions. The study points toward the need for more careful understanding of managerial definitions of risk and return, careful handling of leads and lags, and understanding risky decisions in their organizational and market contexts.
Related Links	https://cloudfront.escholarship.org/dist/prd/content/qt3x57q8fd/qt3x57q8fd.pdf
Ending Page	339
Page Count	10
Starting Page	330
ISSN	00014273
e-ISSN	19480989
DOI	10.2307/256923
Journal	Academy of Management Journal
Issue Number	3
Volume Number	42
Language	English
Publisher	Duke University Press
Access Restriction	Open
Subject Keyword	Decision Making Risk Assessment Expected Returns Business Forecasting Commercial Loans Strategic Planning Business Planning Executives -- Attitudes Risk Management in Business Executives -- Psychology
Content Type	Text
Resource Type	Article
Subject	Business and International Management Strategy and Management Management of Technology and Innovation