In predominantly Anglo-American literature, the motivating effect of employee participation is repeatedly emphasized. Both in the USA and the EU, there are numerous initiatives aimed at promoting employee involvement in their companies. However, should the assumption of a universal motivational effect of employee participation be questioned in light of different cultural contexts? When employees are involved in the company, they bear entrepreneurial risk either fully or partially. The attitude towards risk can vary significantly between cultures, meaning that strong risk aversion could counteract the assumed motivational effects. To this end, the present book examines the risk preferences of different agents from the perspective of principal-agent theory, which distinguishes between risk-neutral and risk-averse agents.