Bowman's Paradox Revisited: An Investigation of Three East Asian Markets

摘要

One of the most puzzling phenomenons in the strategy literature is the observed inverse risk-return association known as Bowman's Paradox. This paper examines a recent five-year dataset for organizations headquartered in China, Japan, and Vietnam to investigate if such paradoxical relationship exists in the East Asian markets. Analyses from 10,623 annual firm observations across 28 industries show support for the negative relationship between organizational risk and return across the three countries. We also borrow insights from prospect theory and find that firms performing below their industry median tend to be more risk-seeking than those firms who outperform the industry median.