Risk attitudes and profits among small enterprises in Nigeria

Authors
Publication date 2010
Series Tinbergen Institute Discussion Paper, TI2010-053/3
Number of pages 36
Publisher Amsterdam/Rotterdam: Tinbergen Institute
Organisations
  • Related parties - SEO Economisch Onderzoek
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract This paper analyses the effect of risk attitudes of firm owners on profits among micro and small enterprises (MSEs) in Lagos, Nigeria. Higher risk perceptions are shown to have a significant positive effect on profits, whereas risk propensity has a negative or no effect. Education, age, being male, and firm size are all positively related to profit, while young firms earn lower profits. Overall, the results suggest that being aware and dealing cautiously with risk leads to higher profitability.
Document type Working paper
Note May, 2010
Language English
Published at http://www.tinbergen.nl/discussionpapers/10053.pdf
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