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Entrepreneurial Risk taking propensity and Performance: A case study of Owner-Managed companies in the Ghana Club 100.
Blekinge Institute of Technology, School of Management.
2009 (English)Independent thesis Advanced level (degree of Master (One Year))Student thesis
Abstract [en]

Abstract Title: Entrepreneurial Risk taking propensity and Performance: A case study of Owner-Managed companies in the Ghana Club 100. Author: Desmond Dellor Supervisor: Anders Hederstierna Department: School of Management, Blekinge Institute of Technology Course: Master’s thesis in Business administration, 15 credits (ECTS). Background and Problem Discussion: This study seeks to assess how successful are Owner- Managed Companies in the “Ghana Club100”. The broad question addressed by this study is whether Owners manage their businesses better or not and also to examine whether Owner Managers in aggregate exhibit decision biases in their investment decision making processes taking into account the risk bearing role of entrepreneurs. Purpose: This research sought to investigate the risk aversion of Ghanaian entrepreneurs, whether or not they are biased in their investment decision making and to assess the performance of Owner- managed companies against their counterparts employed to manage for shareholders. Method: The study employed both conceptual and empirical approach. That is theories and principles pertaining to the study were examined and steps were taken to establish factual evidence base on figures sought from respondents by the use of questionnaire. Primary and secondary data were used extensively for the study. Theory: There was an extensive review of existing literature on the subject matter with careful consideration for concepts which clearly bring alive the understanding of entrepreneurship, risk taking propensity, performance and good corporate governance and makes linkages with empirical data. Analysis: Both quantitative and qualitative measurements were employed in analyzing the data collected for the study. The quantitative analysis involved the use of descriptive statistics and qualitative analysis focused mostly on information derived from the interviews and questionnaire administered. The outcomes were used to test the hypotheses. Conclusion: I found that Ghanaian Entrepreneurs have two types of risk: demand uncertainty and ability uncertainty. They display a significant amount of risk aversion to demand uncertainty but are very confident about their capabilities, in other words, they are “risk seeking” in respect of their ability uncertainty. Accordingly, whilst they are risk-averse in the classic sense of preferring a “certain return” to an uncertain investment with commensurate expected value, their over-confidence predisposes them to bear economic risk under a given set of conditions. Key Words: Risk taking propensity, Overconfidence, Investment, Performance

Place, publisher, year, edition, pages
2009. , p. 74
Keywords [en]
Risk taking propensity, Overconfidence, Investment, Performance
National Category
Business Administration
Identifiers
URN: urn:nbn:se:bth-5728Local ID: oai:bth.se:arkivex775D5CD8E1F2DBA0C1257752002CEF7BOAI: oai:DiVA.org:bth-5728DiVA, id: diva2:833127
Uppsok
Social and Behavioural Science, Law
Supervisors
Note
Desmond Dellor P.O. Box CT 5360 Cantonments, Accra GhanaAvailable from: 2015-04-22 Created: 2010-06-30 Last updated: 2015-06-30Bibliographically approved

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