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Prosociality and Risk Preferences in the Financial Sector

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  • Max Deter

Abstract

Using large-scale data from the German Socio-Economic Panel (SOEP), this paper finds that financial professionals have a lower prosociality and riskier behavior than a control group. I interpret these findings using the person-organization fit theory, and thus, the compatibility between the employee’s personality and the prevailing culture in their organization. The financial sector attracts riskier individuals, but professionals become less prosocial in the sector. These attitudes are associated with behavioral consequences, and are mainly driven by male professionals in lower management.

Suggested Citation

  • Max Deter, 2020. "Prosociality and Risk Preferences in the Financial Sector," SOEPpapers on Multidisciplinary Panel Data Research 1075, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp1075
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.740922.de/diw_sp1075.pdf
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    Cited by:

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    More about this item

    Keywords

    prosocial motivation; risk; financial sector; selection; socialization;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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