Variable Organizational Risk Preferences: Tests of the March-Shapira Model

By Kent D. Miller, Wei-Ru Chen. 2004

381 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/31d52220e27ce22515e04085b1ca8bddc8558e97

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

In Finance

Citations in the corpus

Relative Strategic Emphasis and Firm-Idiosyncratic Risk: The Moderating Role of Relative Performance and Demand Instability (2017, methodology): “…i at time t.We used afirm’s return on assets (ROA) as its performance measure (i.e., Performanceit = ROAit) and the prior year’s industry-median ROA as the proxy for its reference point (i.e., Reference Pointit = Industry-Median ROAit-1) (Fiegenbaum and Thomas 1988;Miller and Chen 2004).”
Success Traps, Dynamic Capabilities and Firm Performance (2015, positive): “Success generates optimism, enthusiasm and commitment (March and Olsen, 1976; Weick, 1984; Sitkin et al., 2011), resulting in increased feelings of self-efficacy (Audia et al., 2000) and the likelihood of complacency (Miller and Chen, 2004).”
Disentangling compensation and employment risks using the behavioral agency model (2007, result): “This result conforms to research by Miller and Chen, who find that ‘organizations performing poorly showed increased risk as they neared bankruptcy’ (Miller and Chen, 2004: 105).”
All Aspirations are not Created Equal: The Differential Effects of Historical and Social Aspirations on Acquisition Behavior (2014, background): “Researchers tend to focus on the relationship between overall firm performance and firm behavior (e.g., Iyer & Miller, 2008; Miller & Chen, 2004; Mishina et al., 2010), notably how overall firm performance below aspirations triggers problemistic search and increases organizational change and…”
Organizational Aspirations, Reference Points, and Goals (2012, background): “First, organizations close to failure generally exhibit risk aversion (Miller & Bromiley, 1990; Wiseman & Bromiley, 1996), but not always (Miller & Chen, 2004).”
Does Family Involvement in Management Reduce the Risk of Business Failure? The Moderating Role of Entrepreneurial Orientation (2016, background): “Some research suggests that firms may modify their entrepreneurial behavior in an attempt to adapt to environmental conditions, and particularly the risk of failure may exert a substantial influence on the propensity of companies to engage in entrepreneurial ventures (Miller & Chen, 2004).”
Dancing with Strangers: Aspiration Performance and the Search for Underwriting Syndicate Partners (2005, positive): “…terms of market and accounting metrics salient to organizational decision makers, including market share (Greve, 1998), revenue (Mezias, Chen, and Murphy, 2002), return on sales (Audia, Locke, and Smith, 2000), and return on assets (Fleming and Bromiley, 2003; Greve, 2003a; Miller and Chen, 2004).”