Managerial risk-taking: An empirical study

It is generally believed that managers are more risk-taking than others. However, researchers have shown managers to be both risk-averse and risk-seeking, depending on the target performance or reference points. The present study is an attempt to see if managers differ from others in risk-taking propensity. Managers, non-managerial employees, and MBA students from different organizations in Madras were administered the CDQ and modified Risk-in-Basket. Results of ANOVAs and chi-square analyses show that managers, potential managers (MBA students), and non-managerial employees do not differ significantly in risk-taking as measured by the instruments used. It is concluded that managers may be attributed higher risk-taking due to their ability and that what is really expected from our managers is successful risk-taking, rather than more risk-taking.