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Das Risiko-Rendite Paradoxon. Stand der Forschung und Ergebnisse einer empirischen Untersuchung

Author

Listed:
  • Volker Wiemann

    (Mitarbeiter im Bereich Finanzierung & Contolling der Flores Holding GmbH)

  • Thomas Mellewigt

    (Leiter Regulierungsökonomie der o.tel.o Communications GmbH)

Abstract

Summary Bowman (1980) found an unexpected and paradoxical negative relationship between risk and return in many firms across industries. This article summarizes major findings concerning this so called risk/return paradoxon. Following an assessment of previous research the authors develop a framework based on prospect theory and contingency approach for a further investigation of the phenomenon. Based on a sample of 155 firms (groups), it is shown that the risk/return paradoxon is valid for German groups. This is a surprising result given that groups are established among other things with the intention to reduce risk. In addition, the results show that diversification and size are variables that effect the risk of a group. These results support the basic propositions of prospect theory and are robust within and across industries. Some implications for further research are discussed.

Suggested Citation

  • Volker Wiemann & Thomas Mellewigt, 1998. "Das Risiko-Rendite Paradoxon. Stand der Forschung und Ergebnisse einer empirischen Untersuchung," Schmalenbach Journal of Business Research, Springer, vol. 50(6), pages 551-572, June.
    • Handle: RePEc:spr:sjobre:v:50:y:1998:i:6:d:10.1007_bf03371521
    DOI: 10.1007/BF03371521
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    References listed on IDEAS

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