Risk Preference,Overconfidence and Job-seekers Choice of Compensation Plans An Experiment Study Based on Different Characteristics of Incentive Plans
The study examined the influence of two performance basis of variable pay (team/individual),two types of team size (large/small)and two incentive plans(high probability of receiving a small bonus/smaller probability of receiving a large bonus)on the 200 graduating students(with different types of risk preference and overconfidence) choice of compensation plans with guhn & Yockeys study paradigm(2003).The results show that(1)college students prefer variable pay plan to fix salary.(2) the performance basis of variable pay,team size and incentive plans do not obviously affect the Chinese college studentschoice of variable pay.(3)both independent and reference overconfidence have significant positive correlations with the choice of variable pay,so does the risk preference,the reference overconfidence has no relationship with the choice of variable pay when it was based on team performance;only the independent overconfident and risk preference have remarkable contributions to the compensation plans choice regression model.(4)the effects of overconfidence and risk preference on pay choice were influenced by performance basis of variable pay and incentive plans,the overconfident has significant contribution to the regression model when the pay is individual-based ,but only the reference overconfidence has significant effect when the pay is team-based.The independent overconfidence and risk preference have significant contribution to the regression model when the incentive plan is a smaller probability of receiving a large bonus,but both overconfidence and risk preference have no significant contribution to the model when the incentive plan is the other case.(5)other individual differences such as major, self-efficient and group work preference also have some effect on the college studentscompensations choice.Implications for designing compensation plans and employee recruitment and retention under financial crisis arc discussed.
Risk preference Overconfidence Compensation Variable pay
Ruxin Wu Jiangbai Huang
Business School Central South University Changsha, P.R.China
国际会议
The 10th International Conference on Intelligent Technologies(第十届智慧科技国际会议 InTech09)
桂林
英文
137-141
2009-12-12（万方平台首次上网日期，不代表论文的发表时间）