Affective influences on risk perceptions and risk intention

The effects of affect, as measured by the dispositional traits of positive affectivity (PA) and negative affectivity (NA), on risk perceptions and risk intentions were tested among 149 managers from a variety of industries and companies. A risk‐assessment instrument consisting of systematically varied business scenarios was used to measure managerial perceptions of the risk dimensions of uncertainty, gains/losses, framing and personal involvement. Findings suggest that positive affect (high PA) managers viewed risk‐related uncertainty and personal involvement more optimistically, but were not more willing to seek risk. Negative affect (high NA) decision makers perceived risk‐related gains more negatively and were also significantly more likely to avoid risk.