Strategic Risk, Risk Perception and Risk Behaviour: Meta-Analysis

Journal of Financial Management and Analysis Vol. 24 No.2 (Jul-Dec 2011)

Posted: 2 Apr 2012 Last revised: 9 Apr 2012

See all articles by Tom Cooper

Tom Cooper

Memorial University of Newfoundland (MNU) - Faculty of Business Administration

Alex Faseruk

Memorial University of Newfoundland (MNU) - Faculty of Business Administration

Date Written: March 30, 2012

Abstract

We examine the effects of strategic risk perception on behaviour through the meta-analysis of five studies. The extant literature suggests that if risk perception is high it can decrease risk-taking behaviour. The direction of the impact is generally accepted in the business and research community, however, the strength of that direction is not very clear. Using meta-analysis, five strategic risk studies are synthesized to gain clarity on this issue. The results reveal that high-risk perceptions exhibit a negative relationship with risk-taking behaviour. This effect should be understood and closely monitored when formally evaluating strategic risk in business decisions, projects and management.

Keywords: Strategic risk, Meta-Analysis, Risk perception, Risk behaviour

JEL Classification: D81, M19, A12

Suggested Citation

Cooper, Tom and Faseruk, Alex, Strategic Risk, Risk Perception and Risk Behaviour: Meta-Analysis (March 30, 2012). Journal of Financial Management and Analysis Vol. 24 No.2 (Jul-Dec 2011), Available at SSRN: https://ssrn.com/abstract=2032158

Tom Cooper (Contact Author)

Memorial University of Newfoundland (MNU) - Faculty of Business Administration ( email )

St. John's, Newfoundland A1B 3X5
Canada

Alex Faseruk

Memorial University of Newfoundland (MNU) - Faculty of Business Administration ( email )

St. John's, Newfoundland A1B 3X5
Canada

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