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DOES RISK-TAKING BEHAVIOUR OF WOMEN REMAIN “UNDER THE RADAR”?

A study to examine a confirmation bias in the Status-Driven Risk Taking scale.

Master thesis, MSc Human Resource Management University of Groningen, Faculty of Economics and Business

June 29, 2018

LOES KAREMAKER Student number: 3224473

Marwixstraat 31 9726 CB Groningen

Email: l.karemaker@student.rug.nl

Supervisor prof. dr. J.I. Stoker

Acknowledgement: The author would like to thank prof. dr. J.I. Stoker, for her guidance and helpful feedback during writing this thesis. The author also would like to thank ms. M.

Karemaker, MSc, and ms. A.M. van den Heuvel, for their helpful input.

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DOES RISK-TAKING BEHAVIOUR OF WOMEN REMAIN “UNDER THE RADAR”?

ABSTRACT

Nowadays, women are still underrepresented in management or board positions in organizations. For management positions, risk-taking is seen as an important trait, because it can lead to economic success in today’s highly competitive business environment. Studies indicate that the gender inequality in management positions is due to differences in risk-taking between men and women. But a recent study shows that gender differences in risk-taking might be overestimated, due to the bias in the way risk-taking is measured. This finding implies that gender differences found in risk-taking might not reflect actual differences in risk-taking between men and women. This study aimed to examine if another risk-taking measuring instrument, the Status-Driven Risk Taking (SDRT) scale, is biased towards

identifying risk-taking behaviour by men. In order to test this hypothesis, a new version of the SDRT was developed by conducting interviews with eleven Dutch women about feminine norms, and eventually using a rotated component factor matrix. A sample of 297 Dutch men and women both filled out the conventional-, and the new SDRT items. In line with previous literature, for the conventional items, male- and younger participants are more willing to take risks than female- and older participants. More importantly, results also suggest that a

confirmation bias exist in the SDRT scale, since this study found no (significant) relationship between gender and risk-taking for the new SDRT items. According to these findings, this study advices organisations to look at the items of a risk-taking measuring instrument and use one that is less gender biased.

Keywords: Gender, risk-taking, age, Status-Driven Risk Taking scale.

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INTRODUCTION

Women are fewer represented than men in management or board positions in the Netherlands. The Female Board Index (Lückerath-Rovers, 2017) gives an overview of female representation in the board of directors and supervisory board every year. According to the Female Board Index 2017, the number of female directors of listed companies in the Netherlands is reduced from the number of 15 to 13, and the percentage of female

commissioners is increased from 23.1% to 24.6% (Lückerath-Rovers, 2017). Also in the rest of the world, women are underrepresented in senior management roles; 24% of the senior roles was filled in by women in 2016, and at this rate of change, women will not reach equality with men until 2060 (Catalyst, 2017). However, given that managers’ effectiveness depends on context, it is justifiable to think that more stereotypically feminine management behaviour, such as mentoring and collaboration, are important to leadership in certain context (Eagly, 2007). Therefore, it is regrettable that there are fewer women in management

positions than men.

Many studies investigated the gender inequality in promotions and (higher)

management positions, and some of these studies focused on the antecedents of this gender inequality (e.g. Chu & Linz, 2017; Hersch & Viscusi, 1996; Johnston & Lee, 2011; Manning

& Robinson, 1998; Manning & Swaffield, 2015; Vartianen & Pekkarinen, 2004). One of the reasons of gender inequality in management positions is possibly the difference between men and women in risk-taking behaviour. In today’s rapidly changing and highly competitive business environment, leaders and managers are expected to take risks to find new or better ways of doing things to meet the needs of customers or to find different solutions to long- standing problems (Tull, 2017). Therefore, risk-taking is often seen as an important trait in management positions, because it can lead to occupational- and economic success (Hoffman

& Yoeli, 2013).

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Risk-taking is strongly associated with masculinity (Morgenroth, Fine, Ryan & Genat, 2017). Herbert (2015) assumes that risk-taking is a masculine trait that increases reproductive success. Masculinity and gender are two different things, but they are related. Gender role norms guide and constrain masculine and feminine behaviour, so they “observe what most men or women do in social situations, tell what is acceptable or unacceptable behaviour for men or women, and observe how popular men or women act” (Mahalik et al., 2003, p. 3). An example of a masculine attitude of behaviour is that men should be agentic and a

breadwinner, while a feminine attitude of behaviour is that they should have the primary responsibility for childrearing and be emotionally expressive (Bem, 1974; Connell, 1995;

David & Brannong, 1976; Pleck, 1995; Spence, 1993).

The study of Morgenroth et al. (2017) also mentions that numerous studies measure risk-taking in terms of ‘masculine’ behaviours. That is risk taking in the form of e.g.

investment decision, risky sexual behaviour, drug use, and reckless driving (e.g. Chen, Baker, Braver & Li, 2000; Hartog, Ferrer-i-Carbonell & Jonker, 2002; Poppen, 1995). The study of Morgenroth et al. (2017) is the first study that looks at the measuring instrument of risk- taking. They examined whether this measuring instrument contains a confirmation bias. A confirmation bias refers to seeking or interpreting evidence in ways that are incomplete to existing beliefs, expectations, or with a hypothesis in hand (Nickerson, 1998). A concern that Morgenroth et al. (2017) mention in their article is that “a think male-think risk association will mean that risk-taking that is more typical for women may remain “under the radar”

(Nelson, 2014), biasing the construction of scales that measure risk” (p. 2). For their study, Morgenroth et al. (2017) used the Domain-Specific Risk-Taking (DOSPERT) scale to investigate gender differences in risk-taking (Harris, Jenkins & Glaser, 2006; Wilke,

Hutchinson, Todd & Kruger, 2006). Their conclusion is that there is a confirmation bias in the

DOSPERT, the widely used scale to measure risk taking (Lang, 2011).

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If a risk-taking measuring instrument like the DOSPERT has a confirmation bias, this implies that gender differences found in risk-taking are at least partially caused by the

measuring instrument itself, and therefore may not reflect actual differences in risk-taking between men and women. This might imply that women are not less likely to engage in risk- taking behaviour than men.

However, it is not known if all instruments that measure risk-taking behaviour are biased towards behaviour that is more normative for men. One example of another risk-taking measurement is the Status-Driven Risk Taking (SDRT) scale (Ashton, Lee, Pozzebon, Visser and Worth, 2010). The SDRT scale focuses on the willingness to take physical risks to obtain wealth and success and, just like the DOSPERT, these measures of risk-taking may be more normative for men than women (Morgenroth et al., 2017). Therefore, this present research wants to examine if the SDRT scale is biased towards identifying risk-taking in men.

The purpose of this research is to examine if there are gender differences in risk-taking and if a confirmation bias exist in the SDRT, a measuring instrument of risk-taking. If this is the case, then this risk-taking measurement is focusing on behaviours that are more normative for men which might lead to overestimation of gender differences (Morgenroth et al., 2017).

This study has both theoretical and practical implications. As a theoretical implication, interpretations of previous findings should be reconsidered, and it provides an additional challenge to find different ways of measuring risk-taking that are preferentially less focused on masculine risk-taking behaviour.

For the practical implications, if a confirmation bias exist in the SDRT scale, it could

be that women are not less willing to take risks than men, which could have implications for

the perceived suitability of women for management positions. It might be the case that women

are not less likely to take risks but that they are willing to take different types of risks. For

example, in the study of Morgenroth et al. (2017), the probability of taking financial risks is

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higher for men, but the probability of taking social risks is higher for women. Another practical implication is that organisations have to consider different ways of measuring risk- taking that are less biased towards identifying masculine behaviour.

This thesis is organized as follows. First, a brief overview of recent literature

concerning the relationship between gender, age, risk-taking and the SDRT scale is given in order to develop the hypotheses. After that, the method and the results of this study are discussed. The results are divided in two parts: the development of the measuring instrument and an empirical study. Finally, theoretical and practical implications, limitations and options for future research are given.

THEORETICAL FRAMEWORK Gender and risk-taking

A risk is the possibility of suffering harm or loss, and there are different forms of risks (Zuckerman, 2007). Yates and Stones (1992) suggest six types of risks: financial loss

(money), performance loss (for a product), physical loss (from discomfort to death),

psychological loss (self-esteem), social loss (esteem of others) and time loss. Yates and Stone (1992) also defined three characteristics of risks in any activity that influence the choice of risk-taking. These are the potential, the significance and the uncertainty of the losses (Yates &

Stone, 1992). Thus, risk-taking behaviour includes actions which might involve danger or unpleasant and undesirable results (Byrnes, 1998; Slovic, Lichtenstein & Fischhoff, 1988).

As mentioned before, risk-taking is assumed to be one of the reasons that women occupy fewer management positions or get promoted less often than men (Grout, Park,

Sonderegger, 2009). There are several studies that focus on gender inequality in risk-taking in

the workplace. The conclusion of many articles is that women are willing to take fewer risks

than men, e.g. in CEO positions (Faccio, Marchica & Mura, 2016), for college applications

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(Saygin, 2016) or in bargaining about work conditions (Manning & Swaffield, 2005). Reasons that have been mentioned in these articles are that women have a lower opinion about

themselves, are afraid of damaging relationships with others (Manning & Swaffield, 2005) or

“play it safe” because of the possibility of a negative outcome (Saygin, 2016).

Byrnes, Miller and Schafer (1999) executed a meta-analysis of 150 studies in which they looked at gender differences in risk-taking. Their results showed that men are more likely to take risks than women (Byrnes et al., 1999). Reasons for this gender difference could be that risk-taking is a highly valued masculine tendency, and that risk-taking is evolved in competitive environments to gain positions of power for men (Byrnes et al., 1999).

According to the study of Kennison, Wood, Byrd-Craven and Downing (2016), men reported significantly higher levels of risk-taking and especially in the financial domain. In this study, they used the Domain-Specific Risk-Taking (DOSPERT) scale. The DOSPERT includes risk-taking behaviours from different domains, such as financial- , health and safety-, recreational- , and social risk-taking. Their results implicate that the biggest difference in risk- taking behaviour occurs in the financial domain between men (M=19.50, SD=7.80) and women (M=13.69, SD=6.42) (Kennison et al., 2016).

As reported by Maccoby and Jacklin (1974), gender differences in risk-taking are only

established in four psychological areas: verbal ability, visual-spatial ability, mathematical

ability, and aggression. Men have a higher mathematical ability and aggression level

(Maccoby & Jacklin, 1974). Individuals that have a higher ability to make decisions or who

believe that they are very competent at this (high self-efficacy), see more opportunities in

making of decisions about risk-taking, and therefore take more risks (Krueger & Dickson,

1994). Thus, men can be more willing to take risks in the financial domain, due to their higher

perceived self-efficacy (Krueger & Dickson, 1994) caused by their higher mathematical

ability.

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That men show more risk-taking behaviour in the financial domain, is shown in multiple studies. Many experiments that require risk-taking behaviour in the financial domain are about gambling or high risk decisions such as investment and insurance. Women are more risk averse than men in gambling experiments (Borghans et al., 2009; Eckel & Grossman, 2002; Hartog, Ferrer-i-Carbonell & Jonker, 2002; Schubert, Gysler, Brown & Brachinger, 1999) and in investment and insurance experiments (Levy, Elron & Cohen, 1999; Moore &

Eckel, 2003; Powell & Ansic, 1997; Schubert, Gysler, Brown & Brachinger, 2000)

The hormone Testosterone might be an explanation why men are more willing to take risks. Testosterone leads to the desire for sex, the drive for power and the will to win (Fine, 2017). Because men have a higher level of testosterone than women, this can lead to gender differences in risk-taking (Fine, 2017). Women produce higher levels of an enzyme,

monoamine oxidase, and this inhibits the extent to which risk-taking occurs (Zuckerman, 1994). Besides these physical aspects, gender differences in risk-taking may be caused by evolution. Women have a greater responsibility in reproduction and child parenting (LaBorde Witt, 1994) and because of their longer life expectancy, women would benefit the most from less risk-taking due to preventing negative outcomes for longer periods of time (Hersch, 1996).

The previous findings that men are more willing to take risks, lead to the first hypothesis:

Hypothesis 1: Gender is related to risk taking in such a way that the level of risk taking is lower for women than for men.

However, there are studies that question if women are less likely to engage in risk-

taking than men. The items that are chosen in risk-taking measuring instruments are relevant

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because these items are critical to observe gender differences (Morgenroth et al., 2017), meaning that the items of a measuring instrument of risk-taking can be biased towards identifying masculine behaviour. Nelson (2014) explored the consequences of stereotyping and confirmation bias in published articles on gender and risk aversion. As mentioned before, a think male – think risk association means that risk-taking that is more normative for women may remain “under the radar” (Nelson, 2014), and this can give distorted data towards

identifying risk-taking in men (Morgenroth et al., 2017).This means that risks which women are willing to take are not measured, so this can lead to the conclusion that men are more willing to take risks than women. Hence, it is important that risk-taking measuring instruments are examined if a confirmation bias exist in these instruments.

One study that examined this bias, is that of Morgenroth et al. (2017). They

investigated if a confirmation bias in the DOSPERT scale exists. The participants were asked to indicate how likely (a) women (compared to men) or (b) men (compared to women) would be to engage in different risk-taking behaviours (Morgenroth et al., 2017). Their results showed that behaviours in the DOSPERT are more normative for men than women. Besides that men, compared to women, rated themselves as more likely to engage in risk-taking behaviours in the financial domain and marginally more likely to engage in risk-taking behaviours in the health and safety, and recreational domains (Morgenroth et al., 2017).

The study of Morgenroth et al. (2017) showed that the DOSPERT measurement has a

confirmation bias, which means that researchers overlook more stereotypically feminine

forms of risk-taking by using more male-typical forms. It is important to keep in mind that a

confirmation bias is different from a gender bias. A gender bias is a prejudgment against one

gender, such as sex discrimination, while a confirmation bias is the tendency to interpret new

evidence as confirmation of one’s existing beliefs or theories. Thus, if a measuring instrument

has a gender bias, it has guidelines for one sex that may be generalized and applied to both

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sexes (Holdcroft, 2007). On the other hand if a measuring instrument has a confirmation bias, the results will agree with existing beliefs or theories. Morgenroth et al. (2017) mentioned that their findings could be replicated in other risk-taking measuring instruments that are more normative for men, such as the Status-Driven Risk Taking (SDRT) scale.

Because the SDRT scale focuses on status-driven risk taking, it is important to look at the definitions of status, status driven, and status-driven risk taking. Status can be defined as the relative social or professional position, a high rank or social standing (Oxford Dictionary).

Status driven can be defined as the desire or motivation to achieve or accomplish status, for example, in a workplace. Ashton et al. (2010) used the following definition of status-driven risk taking: “the tendency to seek and accept great risks, particularly physical risks, in pursuit of great rewards involving material wealth or social standing and prestige” (p. 735).

Studies that used the (conventional) SDRT scale as a measuring instrument

consistently show that men are more willing to take risks than women to obtain wealth and status (Ashton et al., 2010). The “SDRT scale scores for men (M=2.64, SD= 0.75) differed more than two-thirds of a standard deviation unit higher than did those for women (M= 2.18, SD= 0.58; t=8.89, p <.001), and showed a standard deviation about 30% larger” (Ashton et al., 2010, p. 736).

Since this study focuses on reasons why women occupy fewer management functions, this study looks at workplace status. Djurdjevic et al. (2017) showed that women have a lower perception of workplace status and popularity than men. In their article a measuring

instrument of workplace status, the Workplace Status Scale (WSS), has been developed and validated. They mention three core components of status: respect (e.g., Janssen & Gao, 2015;

Pearce, 2011), prominence (e.g., Bendersky & Shah, 2012; Sumanth & Cable, 2011), and

prestige (e.g., Chen et al., 2012; Duguid, Loyd, & Tolbert, 2012). The results of their sample

showed a significant negative relationship between gender and workplace status (r= -.27, p

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<.01), and gender and popularity (r= -.24, p <.01) (Djurdjevic et al., 2017). The results of the second sample also showed a negative relationship between gender and workplace status, but this was not significant.

According to Browne (1998), the tendency of men to achieve more high-status positions and to earn more money cannot be attributed to inherent differences between men and women, but is caused by external forces like society. “The reproductive payoff that comes from achievement of status has left them (men) more interested than women in striving for status in hierarchies and engaging in the kind of risk-taking behavior that is often necessary to reach the top of hierarchies and acquire resources” (Browne, 1998, p. 429-430). In other words, due to the perceptions that society has about male or female behavior, men are more status-driven than women, and are willing to take more risks to achieve this status.

More than half of the fourteen conventional SDRT items are related with money or material possessions (words like “pay”, “treasure”, “billionaire”). Men are often expected to be the breadwinner of the family, and to be successful or powerful (Mahalik et al., 2003), so this could lead that men are more focused on earning money. Thus, the items of the

conventional SDRT scale could therefore be more normative for men.

In addition, Smiler (2006), and Johnston and Lee (2011) mentioned that women value non-monetary aspects of work more highly than men. Women are also less likely to engage in competitive behavior (Campbell, 2002), because they are less concerned with attaining and maintaining power, but they are more concerned with group stability (Guy, Newman &

Mastracci, 2008; Van Vugt & Spisak, 2008). Thus, according to the articles of Guy et al.

(2008) and Van Vugt and Spisak (2008) there could be different types of status; a masculine

status and feminine status and it may be that status in hierarchies is more a masculine status,

and risk-taking behavior to maintain group stability could be important for feminine status.

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In this line of reasoning, when the new SDRT scale contains items that are less focused on monetary and possessions and more normative for a more feminine status such as being nice in relationships (Mahalik et al., 2005), the differences in risk-taking between men and women may reduce or disappear. In this line of reasoning, the second hypothesis is stated as follows:

Hypothesis 2: The Status-Driven Risk Taking Scale will moderate the relationship

between gender and risk-taking. When the conventional Status-Driven Risk Taking scale is used, the results will suggest that men are willing to take more risk than women. When the new Status-Driven Risk Taking Scale is used, there will not be a significant difference between women and men .

The interaction between gender and age on risk-taking

Interestingly, age can interact with gender and this can influence the level of risk- taking. Younger individuals are more willing to take risks in a physical domain (Valsecchi, Billino & Gegenfurtner, 2017) and in the financial domain (Ferris, Javakhadze & Rajkovic, 2017; Vroom & Pahl, 1971; Wang & Hanna, 1997). But men and women in younger groups show no difference in risk-taking. In the article of Breivik, Sand, and McDonald Sookermany (2017), the relationship between sensation seeking and risk-taking in the Norwegian

population is studied. Sensation seeking is a trait defined by the seeking of varied, complex,

and intense situations or experiences, and the willingness to take physical, social, and

financial risks for the sake of such experience (Breivik et al., 2017). Sensation seeking is

related with risk-taking, but the stimulation is more important than the risk. Their findings

suggest that, although men are more sensation seeking than women, this finding was not

found in the group of younger participants (Breivik et al., 2017).

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Likewise, the results of Gardner and Steinberg (2005) showed that there are limited gender differences between the adolescents (13-16 years), youths (18-22 years), and adults (24 years of older). In their study, the adult group consisted of 95 participants, M= 37.24, SD=

12.37 (Gardner & Steinberg, 2005). In case of the adults, male and female individuals gave comparable weights to benefits of risk-taking decisions (Gardner & Steinberg, 2005), so their results could suggest that there are no gender differences until the average age of 37 years.

In contrast, older women are more risk averse than men. The study of Halek and Eisenhauer (2001) examined the demography of risk aversion. The sample of their study was nearly 2400 households with ages between 35 and 77 years (M= 54.93, SD= 4.23). The results showed that men are less risk averse than women between the age of 35 and 77 years (Halek

& Eisenhauer, 2001).

According to the articles of Gardner and Steinberg (2005), and Halek and Eisenhauer (2001), there are barely any gender differences between men and women until the average age of 37, but these differences increase when participants get older such that older men show more risk-taking behaviour than older women. Therefore, the expectation is that older men will be more willing to take risks than older women. However, this difference may reduce or disappear when the new SDRT scale is used, because this scale questions risk-taking

behaviour that is more normative for women. Hence, just as stated in the second hypothesis, there will be no significant difference between men and women in risk-taking by using the new SDRT scale. Based on the articles described above, the third and fourth hypotheses of this study are:

Hypothesis 3: Age will relate to risk-taking, such that younger people are willing to

take more risks than older people.

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Hypothesis 4: Age will interact with gender, such that only older men are willing to

take more risks than older women. This relationship will only hold when risk-taking is measured with the conventional SDRT scale.

The conceptual model is graphically depicted in Figure 1; its components and relations are based on the previous sections.

[Insert Figure 1 here]

METHOD Pre-study: development of the instrument

Participants. In this pre-study, interviews were held with eleven Dutch women. The women

differed in age, relationship status, and work status so that a representation of the sample of the empirical study about the feminine norms could be given. In other words, through these interviews it could be examined which feminine norms are important for women of different generations and social status. The female participants could be divided in three different age groups; five until the age of 30, four between 30 and 40 years, and two older than 40 years.

Three participants were students, seven were employed women, and one participant was retired. In terms of the relationship status of the participants, two were single, four were in a relationship, and five were married.

Procedure and design. In order to develop the items for these interviews, the Conformity to

Feminine Norms Inventory was used (CFNI; Mahalik et al., 2005). The CFNI are feminine norms which identify how women should or are expected to behave (Mahalik et al., 2005).

During the interviews, the CFNI norms were described and explained, and the participants

were asked to indicate a top three out of the eight feminine norms regarding to importance

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and determinants that could lead to status. The results of these eleven interviews are shown in Table 1.

[Insert Table 1 here]

The results of the interviews showed that the feminine norms ‘thinness’ and ‘romantic relationships’ are rarely seen as important or as a determinant of status. The feminine norms

‘nice in relationship’, ‘care for children’, and invest in appearance are often named in the top three of importance or as determinant of status. ‘Modesty’, ‘domestic’, and ‘sexual fidelity’

scored moderately in both top three lists.

Based on the CFNI, four feminine domains were included in the new SDRT items:

‘nice in relationships’, ‘care for children’, ‘sexual fidelity’, and ‘invest in appearance’

(Mahalik et al., 2005). Together with prof. dr. J.I. Stoker, four types of risk-taking behaviour, which are more gender-neutral or stereotypically for women, are created for each CFNI domain which led to sixteen new SDRT items, four for each subdomain (see Table 2).

[Insert Table 2 here]

The sixteen new SDRT items were tested by four individuals –that were later excluded as participants for the empirical study- to examine if the description of all items were clear, and to verify the Dutch translation of the conventional SDRT items.

Study 2

Participants. For the survey, the number of participants which was aimed for, was 200

participants in total, so fifty participants per category; men until the age of 30, women until

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the age of 30, men of 30 years of older, and women of 30 years or older. The age of 30 years old is chosen as threshold due to the findings of Valsecchi et al. (2017) that participants until the age of 30 years old are more willing to take risks than older participants. Participants of this study were 331 Dutch men and women. A bigger sample size provides a smaller margin of error, and can give more accurate mean values (Zamboni, 2018), so therefore this empirical study aimed to include as much participants as possible. As a result, 331 Dutch men and women participated in this study. Four participants who did not fill in the whole survey have been excluded. Based on the findings of Niedlich, Steffens, Krause, Settke, & Ebert (2015), 30 nonheterosexual participants are excluded. They (Niedlich et al., 2015) showed that members of the lesbian, gay, and bisexual community can have different gender norms. This can have an influence on our findings, as the items of the survey are associated with feminine and masculine norms, therefore the 30 nonheterosexual participants are excluded.

There are 61 men until the age of 30 years with an average age of 23.8 years (SD=

2.57), and 88 women until the age of 30 years with an average age of 24.75 years (SD= 2.57).

For the men and women older than 30 years, the average age of the 63 men was 48.46 years (SD= 11.78), and for the 85 women the average age was 48.46 years (SD= 9.63).

Procedure and design. Participants indicated the likelihood that they would engage in

different types of risk-taking behaviour. Behaviours from the conventional and new SDRT items were presented. The conventional SDRT scale included fourteen items, of which five are reverse-keyed. These items are showed in Figure 2.

[Insert Figure 2 here]

To score these items, a 1-to-5 response scale (1= strongly disagree to 5= strongly

agree) was used, just like this has been used in the study of Ashton et al. (2010). Eventually,

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every (sub)scale will be analysed by a 2 (gender participant: female vs. male) x 2 (age: 18-30 years vs. older than 30 years) design.

Measures. At the end of the questionnaire, demographic questions about age, education level,

relationship status, working status and sexuality were presented to the participants. The demographic questions were measured as follows: age is measured in years, education level on a 1-to-6 response scale (1= no education / primary school to 6 = PhD degree), relationship status on a 1-to-7 scale (1= single to 7 = something else), working status on a 1-to-9 scale (1=

entrepreneur to 9= not working), having children (1= Yes and 2= No), and sexuality on a 1- to-4 scale (1= heterosexual to 4= not willing to answer). In Table 3 the descriptive statistics of the participants are shown.

[Insert Table 3 here]

RESULTS Development measuring instrument

The conventional SDRT items are internally consistent (α = .86). However, the new SDRT items are not internally consistent (α = .28), and the internal consistency barely increases if one of the items is deleted. By performing a Rotated Component Factor analysis (SPSS, 1999), six components were detected within the sixteen new SDRT items. The items NIR4 1 and CHILD3 2 did not load well with any of the six components, therefore they have been removed. This resulted in a total of fourteen items that capture the new SDRT items in six components (see Table 4).

1

NIR4: If people would like me more when I lied about my major contribution in a project, I would lie about this.

2

CHILD3: I want to give financial support to children in developing countries, even if this means that I have less

money to spent

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[Insert Table 4 here]

The first (α = .68) and second (α = .77) component included two items of ‘invest in appearance’, but since the four items together also have an acceptable internal consistency (α

= .72), it was decided to create the four-item ‘invest in appearance’ scale. The third

component of the factor analysis had three items of ‘care for children’ and one item of ‘nice in relationships’, which based on the content of these items got the new label ‘caring’, with an α of .57, which is considered reasonable.

The fourth component includes two items of ‘nice in relationships’ (α = .53) and the fifth component contains two items of ‘sexual fidelity’ (α = .53). The other two items of

‘sexual fidelity’ are included in the sixth component, but this has a very low internal

consistency (α = .16). Due to the low internal consistency of each of the fourth, fifth and sixth component, these subscales will not be used in this empirical study.

Table 5 gives an overview of the internal consistency of each scale.

[Insert Table 5 here]

Looking at the internal consistency, only the ‘invest in appearance’ items, and the

items of ‘caring’ can be used. The third and fourth component have a lower internal

consistency. Because this study is interested in the four domains of the new SDRT scale, it

examines what the domains ‘nice in relationship’ and sexual fidelity can mean in terms of

risk-taking. Therefore, it has been decided to only use one item of both domains to measure

the relationship between ‘nice in relationship’ and ‘sexual fidelity’ in risk-taking. Obviously it

is not ideal, but this study found it important to examine the four domains in the new SDRT

scale. Furthermore, it is interesting to look at the ‘nice in relationship’ and ‘sexual fidelity’

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item, because these risk-taking behaviours are expected to be more normative for women, thus the difference between men and women can decrease or be equal.

Descriptive statistics

Table 6 provides descriptive statistics and intercorrelations for all study variables.

[Insert Table 6 here]

It was striking that the conventional SDRT scale correlates with the ‘invest in appearance’ scale, the ‘caring’ scale, and the ‘nice in relationship’ item (see Table 6). Also, Table 6 shows that gender and age both correlate with the conventional SDRT scale, but age also correlates with the ‘invest in appearance’ scale, as well as the ‘sexual fidelity’ item.

For testing hypothesis 1 and 3, the conventional SDRT items will be examined whereas relationship status and having children are included as control variables, due to a negative relationship with relationship status (r= -.380, p <.01), but a positive relation with having children (r = .426, p <.01).

For testing hypothesis 2 and 4, the four subscales of the new SDRT scale will be examined. For the scale ‘invest in appearance’, relationship status (r= -.136, p <.01), and having children (r= .193, p<.01) will be included as control variables. Having children will also be included as control variable for the ‘sexual fidelity’ item, due to a positive relationship with this item (r= .211, p <.01). The ‘caring’ scale and the ‘nice in relationship’ scale are not related to any variable, so for these items no control variables have to be included.

Table 7 gives an overview of the average scores on the conventional and new SDRT

(sub)scales for the four participants groups.

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[Insert Table 7 here]

Hypothesis testing

[Insert Table 8 here]

Hypothesis 1. Results of the ANOVA test for the conventional SDRT scale indicated

that there is a significant main effect for gender, F(1, 295) = 42.764, p < .01 (see Table 8).

These results replicate the findings of Ashton et al. (2010), and these results support the first hypothesis that male participants respectively are more willing to take risks.

Hypothesis 2. For the ‘invest in appearance’ scale, results indicated that there is no

significant main effect for gender, F(1, 295) = 1.350, p= .247 (see Table 8). This result of this first subscale of the new SDRT items supports the second hypothesis, that there is no

difference between men or women in risk-taking.

Results of the ANOVA for the ‘caring’ scale indicated that there is no significant main effect for gender, F (1, 295) = 2.106, p = .148 (see Table 8). For this second subscale of the new SDRT items, there is no difference between male or female participants in the

willingness to take risks, hence this finding supports the second hypothesis.

The ‘nice in relationship’ item examined the likelihood of being a famous and powerful person, even if this means that the participant will not see his or her friends anymore. Results indicated that there is no significant main effect for gender, F (1, 295) = .578, p = .448. So, this finding supports the second hypothesis.

The ‘sexual fidelity’ item examined the likelihood of, if the participant cheated on

their partner, they would risk everything to keep this a secret. Results indicated that there is

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no significant main effect for gender, F (1, 295) = .010, p = .921 (see Table 8). This means that there is no difference between men and women in the likeliness to risk everything to keep their sexual infidelity a secret. Thus, this finding supports the second hypothesis.

Hypotheses 3 and 4. Results of the ANOVA test for the conventional SDRT scale

indicate that there is a significant main effect for age, F(1, 295) = 12.239, p = .001 (see Table 8). This finding supports the third hypothesis. However, the interaction effect between age and gender on the conventional SDRT scale was not significant, F(1, 295) = 2.867, p = .091 (see Table 8). This finding does not support my fourth hypothesis.

For the ‘invest in appearance’ scale, results indicated that there is no significant main effect for age, F(1, 295) = .306, p = .580, or that gender and age interacted, F(1, 295) = 2.867, p = .091 (see Table 8). These results of this first new SDRT subscale do not support the third hypothesis, but they do support the fourth hypothesis which said that there is no difference between men or women in risk-taking, even when age increases.

Results of the ANOVA for the ‘caring’ scale indicated that there is no significant main effect for age, F (1, 295) = .125, p = .724, or interaction between age and gender, F (1, 295) = 1.067, p = .302 (see Table 8). For this subscale of the new SDRT items, there is no difference between younger and older participants and between older men and older women in the willingness to take risks. Hence, this does not support the third hypothesis, but it does support the fourth hypothesis.

For the ‘nice in relationship’ item, there is no significant main effect for age F (1, 295)

= 2.367, p = .125, but there is a significant interaction effect between gender and age F (1,

295) = 5.243, p = .023 (see Table 8 and Figure 3). The interaction effect means that until the

age of 30 years, men are more willing to take risks than women. However, this changes when

participants are older than 30 years old. Women above the 30 years old are more willing to

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take risks than men of the same age (see Figure 3). This finding does not support the third hypothesis, but it does support the fourth hypothesis that older men are not more willing to take risks than older women. In fact, this result suggest that older women are more willing to take risks than older men.

[Insert Figure 3 here]

Results of the ANOVA for the ‘sexual fidelity’ item indicated that there is no significant interaction effect between gender and age, F (1, 295) = .897, p = .344 (see Table 8). But there is a significant main effect for age, F = (1, 295) = 5.372, p = .021. This means that participants until the age of 30 years old rated themselves as more likely to risk

everything to keep their sexual infidelity a secret. Thus, these findings of this subscale support the third and fourth hypothesis.

DISCUSSION AND CONCLUSION

Summary of results

Women are still underrepresented than men in management or board positions in the

Netherlands. One of the reasons of the gender inequality in management positions is the

assumed difference between men and women in risk-taking behaviour. This study is

conducted to examine whether a confirmation bias exist in the Status Driven Risk Taking

(SDRT) scale (Ashton et al., 2010). Therefore, the relationship between gender and risk-

taking, the SDRT scale as a moderator on the relationship between gender and risk-taking,

and the interaction effect between age and gender on risk-taking are examined. The sample

consist of 297 Dutch men and women that can be divided in four groups; women until the age

of 30, men until the age of 30, women older than 30 years, and men older than 30 years.

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Results of this study provide support for almost all hypotheses. In accordance to the first hypothesis, a negative relation between gender and risk-taking is found, meaning that men are more willing to take risks than women. This study also found support for the second

hypothesis, that gender differences in risk-taking behaviour are found due to the way risk- taking is measured. When the new SDRT scale is used, there are no significant differences in risk-taking between men and women. In addition, the results did not support the hypothesis that older men are willing to take more risks than older women when the conventional SDRT scale is used.

Theoretical implications

This study provides empirical evidence that more stereotypically feminine forms of risk-taking behaviour stay “under the radar” due to using more male-typical forms in the measurement of risk-taking. When risk-taking is measured in a different way, gender

differences in risk-taking will decrease or even disappear. This study replicates the findings of Morgenroth et al. (2017) that gender differences are contingent on the specific items chosen.

This replicates the findings of Byrnes et al. (1999) that the content of risk-taking behaviour produce similar gender differences, whereas other situations produce an increase or decrease in gender differences. In the future, it can be advised to researchers to use different ways of measuring risk-taking that are preferably less gender biased or are less focussed on masculine risk-taking behaviour.

Finally, the insignificant interaction effect between gender and age on risk-taking in

three of the four subscales of the new SDRT scale do support the fourth hypothesis. This

means that opposite to earlier findings (Watson & McNaughton, 2007), older men are not

more willing to take risks than older women when the new SDRT scale is used.

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Practical implications

The findings of this study on the relationship between gender and risk-taking

behaviour have practical implications for organisations. The first practical implication is that organisations should look at the items that measure risk-taking behaviour in a risk-taking measuring instrument. As mentioned, one of the reasons that women are fewer represented in management functions, is due to their lower willingness to take risks. According to Hoffman and Yoeli (2013), risk-taking can lead to occupational- and economic success and is therefore important in management positions. However, this study provides empirical support that gender differences in risk-taking depend on the type of risk-taking behaviour that is being measured by the measuring instrument. This is also a practical implication for the HR- department when using a risk-taking measurement in an assessment for example during a recruitment process. It is advised that they use a risk-taking measuring instrument that is less gender biased to give a realistic image of the participant’s willingness to take risks.

One of the social implications mentioned by Morgenroth et al. (2017) is that measurement and factors such as gender norms and expectations of success, should be

reconsidered on how they may vary across- and within risk domains. In other words, it cannot be universally accepted that women are less willing to take risks than men in every risk domain. Hence, the second implication is that the reason that women are less suitable for management functions due to their risk aversion, may be used less. The HR-department can anticipate on this by looking specifically at the competences that are requested for a position, and in which domain the participant has to take risks.

Limitations and future directions

Despite its contributions to research and practice, this study is not without limitations.

First, there are limitations in the new SDRT scale. During the development of this scale, the

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internal consistency appeared to be low and therefore some items had to be excluded. Further,

‘nice in relationship’ and the ‘sexual fidelity’ both contain only one item. A single item may be more vulnerable to random measurement errors, or may be more vulnerable to unknown biases in meaning and interpretation (Hoeppner, Kelly, Urbanoski & Slaymaker, 2011). A suggestion for future research is to develop a multiple-item measurement for all of the new SDRT subscales.

A second limitation of this study is that data is gathered by using a cross-sectional design instead of a longitudinal design, so there may be generational effects. Women who are now older than 50 years, may have another perception of risk-taking than today’s female participants younger than 30 will have at the age of 50 years of older (Wang & Hanna, 1997).

Further research with a longitudinal design would be able to provide clarity on if the risk- taking results change over time. Second, while this study provides valuable insights about the relationship between gender norms and risk-taking measurement, future research should examine this further. A suggestion is to duplicate this study to provide more empirical evidence for the confirmation bias in the SDRT scale.

Finally, the conceptual model of this study could be too simplistic. This model only

provides evidence for the relationship between gender and risk-taking, but not what the

considerations can be to decide about risk-taking. For example, in the study of Visser,

Pozzebon and Reina-Tamayo (2014), a relationship between the SDRT scale and personality

is found. There is a negative relationship between the HEXACO Honesty-Humility or the Big

Five ‘Agreeableness’ and ‘Conscientiousness’, and the SDRT scale (Visser et al., 2014). In

this present study, a personality test is not included. For future research, a recommendation is

to include a personality test to examine if the personality of an individual relates to the level

of risk-taking in the new SDRT scale.

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TABLE 1. RESULTS INTERVIEWS CFNI NORMS

CFNI norm Importance Lead to status

1. Nice in relationships 7 5

2. Thinness 1 0

3. Modesty 4 2

4. Domestic 4 2

5. Care for children 5 4

6. Romantic relationships 1 1

7. Sexual fidelity 4 2

8. Invest in appearance 4 5

Note. N = 11. The numbers in the second and third columns indicate the number of times the

participant mentioned the CFNI norm.

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TABLE 2. DUTCH VERSION CONVENTIONAL AND NEW SDRT ITEMS Conventional items SDRT scale (Ashton et

al., 2010)

CFMNI norm New SDRT items

1. Ik leef liever als een gemiddeld persoon op een veilige plek, dan dat ik als een rijk en machtig persoon op een gevaarlijke plek leef.

2. Ik zou ervan genieten om een bekende en machtig persoon te zijn, zelfs als dit betekent dat ik een hoog risico op een aanslag loop

3. Als de vergoeding heel hoog was, dan zou ik bereid zijn om te werken met zeer explosieve materialen.

4. Ik zou mijn leven riskeren voor een goede kans om een grote verborgen schat te vinden.

5. Als ik rijk en beroemd kon worden door het winnen van een belangrijke wedstrijd, dan zou ik mijn leven er voor op het spel zetten om het te winnen

6. Ik zou graag in een land wonen waar mensen die grote risico’s nemen de kans hebben om een hoge sociale status te krijgen.

7. Het maakt niet uit hoe goed het salaris of

“extraatjes” zijn, ik zou geen spion willen zijn die zeer gevaarlijke opdrachten aanneemt.

8. Ik heb liever een veilig leven als een gewoon persoon, dan dat ik alles op het

Nice in relationships

1. Ik zou altijd mijn droom realiseren, zelfs als dat zou betekenen dat ik contact verlies met mijn vrienden.

2. Ik zou graag een bekend persoon zijn met veel macht, ook al betekent dit dat ik mijn vrienden niet meer zie.

3. Als een vriend(in) ziek zou zijn, dan zou ik meedoen met een risicovol medisch onderzoek als hij/zij hiervan beter zou kunnen worden.

4. Als mensen mij aardiger zouden vinden zodra ik lieg over mijn grote bijdrage binnen een project, dan zou ik dit doen.

Care for children

1. Ik zou mijn leven riskeren voor mijn (toekomstige) kind(eren).

2. Als ik een kind op straat zou zien spelen terwijl er een auto aankomt, zou ik dit kind van de straat halen zelfs als dat betekent dat ik zelf gewond raak.

3. Ik wil kinderen in ontwikkelingslanden financieel ondersteunen, zelfs als dit betekent dat ik zelf minder te besteden heb.

4. Ik zou meedoen met een medisch onderzoek

om zieke kinderen beter te maken, ongeacht of

ik hier zelf tijdelijk ernstig ziek van kan

worden.

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spel zet om aan “de top” te zijn.

9. Voor een baan met (een) hoge status, zou ik bereid zijn om op een plek te wonen met extreem hoge misdaadcijfers.

10. Ik zou een baan met een hoge status aannemen, zelfs als ik daarvoor op een plek moet wonen waar er veel dodelijke ziektes voorkomen.

11. Ik zou vrijwilliger zijn voor een risicovol medisch experiment, als ik er genoeg mee zou verdienen om eerder met pensioen te gaan.

12. Het zou voor mij veel te gevaarlijk zijn om een baas te zijn in de georganiseerde misdaad (nog afgezien van allerlei morele kwesties)

13. Om miljardair te worden, zou ik bereid te zijn om 10 jaar van mijn

levensverwachting in te ruilen.

14. Ik zou niet naar een oorlogsgebied gaan, zelfs als het zakelijk gezien veel

voordelen zou hebben.

Sexual fidelity 1. Ik zou graag een one-night stand met de man/vrouw van mijn dromen hebben, zelfs als dit zou betekenen dat mensen daardoor anders naar mij gaan kijken.

2. Ik zou tegen mijn (toekomstige) levenspartner altijd liegen over het aantal bedpartners in mijn verleden, als dat nodig is.

3. Als ik vreemd zou gaan, zou ik er alles voor over hebben om dit geheim te houden.

4. Ik zou er alles aan doen om een negatieve sexuele reputatie te voorkomen.

Invest in appearance

1. Ik zou meer in mijn uiterlijk investeren, als ik hierdoor aantrekkelijker gevonden word.

2. Ik zou duurdere kleding kopen als ik hierdoor meer aanzien kreeg of aantrekkelijker

bevonden wordt.

3. Ook al zijn de bijwerkingen niet duidelijk van een pil, als ik er beter door uit ga zien, neem ik hem.

4. Ik zou mijn leven riskeren om er beter uit te

kunnen zien.

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TABLE 3. PARTICIPANTS CHARACTERISTICS Descriptive statistics

Variable N M SD Min. Max.

1. Gender 297 1.58 .494 1 2

2. Age 297 36.37 14.297 18 77

3. Education 297 3.86 .884 1 6

4. Relationship status 297 2.72 1.259 1 6

5. Working status 297 3.22 1.925 1 9

6. Having children 297 1.57 .497 1 2

Statistics N %

1. Gender Male 124 41.8

Female 173 58.2

Total 297 100

2. Education Primary education 2 .7

High school 27 9.1

MBO 44 14.8

HBO/ University BSc 163 54.9

WO doc / MSc 59 19.9

PhD 2 .7

Total 297 100

3. Relationship status Single 74 24.9

Relationship 57 19.2

Living together 49 16.5

Married 113 38.0

Divorced 2 .7

Widow(er) 2 .7

Total 297 100

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4. Working status Entrepreneur 11 3.7 Paid employment 175 58.9 Public service 27 9.1 Something else 3 1.0

Housewife- man 8 2.7

Student 60 20.2

Job seeker 7 2.4

Work disability 1 .3

Not working 5 1.7

Total 297 100

5. Having children Yes 129 43.4

No 168 56.6

Total 297 100

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TABLE 4. PRINCIPAL ROTATED COMPONENT FACTOR MATRIX FOR THE 6 NEW SDRT FACTORS

Component

New SDRT Item 1 2 3 4 5 6

IA4 .785

IA3 .738

IA1 .850

IA2 .847

CHILD1 .718

CHILD2 .715

CHILD4 .582

NIR3 .537

NIR1 .843

NIR2 .717

SF3 .835

SF2 .773

SF4 .802

SF1 .579

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TABLE 5. INTERNAL CONSISTENCY (SUB)SCALES CONVENTIONAL AND NEW SDRT ITEMS

(sub)scale Cronbach’s Alpha N of Items

Conventional SDRT items .861 14

Invest in appearance .716 4

Caring .566 4

Nice in relationship .533 2

Sexual fidelity .527 2

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TABLE 6. DESCRIPTIVE STASTICS AND CORRELATIONS

Variables M SD 1 2 3 4 5 6 7 8 9 10

1. Conventional SDRT items

2.13 .62 1

2. Invest in appearance

2.31 .68 .35 ** 1

3. Caring 3.64 .53 .13 * -.04 1

4. Nice in relationship

1.76 .82 .33 ** .32 ** -.19 ** 1

5. Sexual fidelity 3.65 1.06 -.04 -.16 ** .04 -.13 * 1

6. Gender 1.58 .49 -.33 ** .06 -.08 -.04 -.00 1

7. Age 36.37 14.30 -.44 ** -.19 ** -.05 -.05 -.27 ** .00 1

8. Work status 3.22 1.93 .11 .03 .02 -.02 .04 -.01 -.23 ** 1

9. Relationship status

2.72 1.26 -.38 ** -.14 * -.04 -.02 -.08 .12 * .58 ** -.29 ** 1

10. Children 1.57 .50 .43 ** .19 ** -.04 .07 .21 ** -.03 -.79 ** .25 ** -.66 ** 1

Note. N = 297. p * <. 05, p ** < .01. For gender 1 = male, 2 = female. For children 1= yes, 2= no. Age is reported in years.

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TABLE 7. OUTPUT ANOVA AVERAGE SCORE MALE AND FEMALE PARTICIPANTS FOR CONVENTIONAL AND NEW SDRT SCALES

Male Female

18-30 years >30 years 18-30 years >30 years

Variables M SD M SD M SD M SD

Conventional SDRT scale

2.68 .618 2.07 .505 2.20 .505 1.70 .458

Invest in

appearance scale

2.46 .722 2.08 .674 2.41 .581 2.29 .710

Caring scale 3.67 .577 3.71 .476 3.64 .534 3.56 .522

Nice in

relationship item

1.98 1.025 1.62 .580 1.69 .748 1.76 .840

Sexual fidelity item

3.85 1.123 3.46 1.029 3.95 .870 3.33 1.106

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TABLE 8. ANALYSIS OF COVARIANCE RESULTS FOR LIKELIHOOD OF TAKING RISKS IN DIFFERENT (SUB)SCALES

Age Gender Age x Gender Relationship status Having children

Variables df F p η 2 F p η 2 F p η 2 F p η 2 F p η 2

Conventional SDRT scale

1, 295 12.239 .001 .040 42.764 .000 .128 .855 .356 .003 1.009 .316 .003 3.090 .080 .011

Invest in appearance scale

1, 295 .306 .580 .001 1.346 .247 .005 2.867 .091 .010 .038 .846 .000 2.398 .123 .008

Caring scale 1, 295 .125 .724 .000 2.106 .148 .007 1.067 .302 .004 - - - - - -

Nice in relationship item

1, 295 2.367 .125 .008 .578 .448 .002 5.243 .023 .018 - - - - - -

Sexual fidelity item

1, 295 5.372 .021 .018 .010 .921 .000 .897 .344 .003 - - - .090 .765 .000

(41)

FIGURE 1. CONCEPTUAL MODEL

(42)

FIGURE 2. CONVENTIONAL SDRT ITEMS (ASHTON ET AL., 2010)

(43)

FIGURE 3. INTERACTION PLOT GENDER X AGE NICE IN RELATIONSHIP

ITEM

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