Acceptable Risk: A Study of Global Currency Trading Rooms in the US and Japan

Srilata A. Zaheer

Center for Financial Institutions Working Papers from Wharton School Center for Financial Institutions, University of Pennsylvania

Abstract: In this study, I explore the idea of "acceptable risk" at the organizational level of analysis in a sample of currency-trading rooms embedded in different national cultures, and develop and test a multi-level model of how national culture and the organizational context, in particular the control strategies and the norms of acceptable risk within risk-taking units, shape their risk-taking behavior and performance. The results show that "acceptable risk" as defined within the micro-environment of the trading room does influence actual organizational risk-taking, though national culture does not. In addition, market control strategies were related to better risk-transformation in these trading rooms.

References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://fic.wharton.upenn.edu/fic/papers/97/zaheer.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://fic.wharton.upenn.edu/fic/papers/97/zaheer.pdf [301 Moved Permanently]--> https://wifpr.wharton.upenn.edu/fic/papers/97/zaheer.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wop:pennin:97-22

Access Statistics for this paper

More papers in Center for Financial Institutions Working Papers from Wharton School Center for Financial Institutions, University of Pennsylvania Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().