Author(s): Shahriar Gias and Jeffrey Forrest
Incentive plays an important role in motivating managers to take risk and hence perform well. Several research works have already discussed monetary incentives in the domain of risk averse and risk seeking scenario. This paper examines the effect of non-monetary incentive and tested whether non-monetary incentive motivates managers to choose risky decision. Experiment was done with more than two hundreds subjects and the result does not support the hypothesis and found that non-monetary incentive does not motivate managers to take risky choices.