The Impact of Occupational Rewards on Risk Taking Among Managers

Managers often have to deal with the financial and ethical risks that companies face. Evidence from risk management research suggests a negative relationship between people’s age and risk taking tendencies. Within such a framework, the present contribution examines how different perceived occupational rewards may mediate or interact with the relationship between age and risk taking of managers at the company level. Our results show that perceived rewards in terms of job security partially mediate the relationship between age and ethical risk taking, while perceived rewards related to job promotion moderate the effect of age on financial risk taking. We further discuss the role of different organizational strategies to preserve an organization’s health.