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Exploring The Relation Between Mach Scores And Risk Attitude: Empirical Findings From Individual Versus Group Testing

Author

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  • Dan Dacian CUZDRIOREAN

    (Babes-Bolyai University of Cluj-Napoca, 400084, Romania)

  • Alina Beattrice VLADU

    (Babes-Bolyai University of Cluj-Napoca, 400084, Romania)

  • Szilveszter FEKETE PALI-PISTA

    (Babes-Bolyai University of Cluj-Napoca, 400084, Romania)

  • Paula Ramona RACHISAN

    (Babes-Bolyai University of Cluj-Napoca, 400084, Romania)

  • Adrian GROSANU

    (Babes-Bolyai University of Cluj-Napoca, 400084, Romania)

Abstract

Our research delves into the correlation between Mach scores and risk attitudes in both individual and group testing. We conducted a quasi-experiment involving accounting students and performed a statistical analysis of the data. Our findings reveal two key points: firstly, individuals with high Mach scores tend to be more inclined towards risk-taking compared to those with low scores on the Mach IV scale; and secondly, high Mach scores exert a greater influence on group decision-making. Our results underscore the distinction between group and individual behavior in terms of risk attitudes and highlight the predictive utility of the Mach-IV scale in assessing risk attitudes.

Suggested Citation

  • Dan Dacian CUZDRIOREAN & Alina Beattrice VLADU & Szilveszter FEKETE PALI-PISTA & Paula Ramona RACHISAN & Adrian GROSANU, 2024. "Exploring The Relation Between Mach Scores And Risk Attitude: Empirical Findings From Individual Versus Group Testing," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 12(3), pages 12-21, October.
    • Handle: RePEc:scm:ejafbu:v:12:y:2024:i:3:p:12-21
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    References listed on IDEAS

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    1. Ronald J. Baker & Susan K. Laury & Arlington W. Williams, 2008. "Comparing Small‐Group and Individual Behavior in Lottery‐Choice Experiments," Southern Economic Journal, John Wiley & Sons, vol. 75(2), pages 367-382, August.
    2. Ronald J. Baker II & Susan K. Laury & Arlington W. Williams, 2008. "Comparing Small-Group and Individual Behavior in Lottery-Choice Experiments," Southern Economic Journal, John Wiley & Sons, vol. 75(2), pages 367-382, October.
    3. Ronald J. Baker II & Susan K. Laury & Arlington W. Williams, 2008. "Comparing Small-Group and Individual Behavior in Lottery-Choice Experiments," Southern Economic Journal, Southern Economic Association, vol. 75(2), pages 367-382, October.
    4. Bali, Turan G. & Demirtas, K. Ozgur & Levy, Haim & Wolf, Avner, 2009. "Bonds versus stocks: Investors' age and risk taking," Journal of Monetary Economics, Elsevier, vol. 56(6), pages 817-830, September.
    5. Ronald J. Baker II & Susan K. Laury & Arlington W. Williams, 2008. "Comparing Small-Group and Individual Behavior in Lottery-Choice Experiments," Southern Economic Journal, Southern Economic Association, vol. 75(2), pages 367-382, October.
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