The Effects of Enterprise Attributes and Framing Effect on Risk Propensity

• Main Authors: Yu-jing Wang, 王玉菁
• Other Authors: Yen-ming Chen
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/62857665420761344895

碩士 === 國立高雄第一科技大學 === 運籌管理研究所 === 100 === In a highly uncertain competitive market, organizations that are in the process of making profit usually experience a significant level of risk. Information acquisition, time limitation and other factors have constrained the process of risk assessment; the decision makers of the organizations come out with subjective opinions based on the circumstances, arisen problems and ways of coding during that time which will influence the risk propensity. The difference in conditions, human labor and resources might also affect the way the organizations look at profit and loss. This research is based on goal framing, and discusses the organization’s intension of action while facing an opportunity situation and the relationship between the positive frames (gain) and negative frames (loss). The study objects for this research paper are mostly small and medium enterprises in manufacturing sector. The research shows that the effects of negative frames have more impacts on decision-making than the effects of positive frames. In other words, organizations are more concerned about the potential loss compared to positive gain, and these organizations are accompanied with high risk propensity. The attributes of the enterprises, operational time, average age of employees and the capital will impact the flaming effect and risk propensity. The larger the scale of the organization, the higher risk propensity it has in the time of profiting. Organization that has short operational time, low average age of employee and high capital has high risk propensity.