Abstract
Changes in risk-taking behaviour based on interim performance are examined in high-stakes competition. A real options framework is used to provide a richer characterisation of risk-taking behaviour than examined in extant studies. This framework is applied to an examination of ball-by-ball data from 1207 cricket matches. Consistent with modelled expectations, risk taking is found to increase (decrease) at a decreasing rate following below par (above par) interim performance. This result is especially strong in situations where the resources remaining are low, a result predicted by the real options model.
| Original language | English |
|---|---|
| Pages (from-to) | 159-178 |
| Number of pages | 20 |
| Journal | Accounting and Finance |
| Volume | 58 |
| Early online date | 20 Sept 2017 |
| DOIs | |
| Publication status | Published - 1 Nov 2018 |