Abstract

The empirical research of risk preference based on prospect theory: A case study of China large state owned enterprise managers

Author(s): Zhang Yingyu, Bo Xiaodong, Shao Wei, Luan Hui

To test the applicability of prospect theory, 252 China large state-owned enterprises managers are surveyed. Results show that: Main assumptions and conclusions of prospect theory is generally applicable to China Large state-owned enterprise managers; There is little difference between our results and foreign countries in the parameter estimation of value function and weight function; There is different risk preference distribution among different types individual at different situation and different probability; 30% of individuals do not accord with the assumption that the individual data for probabilities of the risk attitude coefficients should be in the range between 0.05 and 0.95.