scholarly journals Foreign Experience of CEOs and Managerial Risk Taking

2021 ◽  
Vol 58 (2) ◽  
pp. 239-265
Author(s):  
Siew-Boey Yeoh ◽  
Chee-Wooi Hooy
Keyword(s):  
Adverse Effect ◽  
Risk Taking ◽  
Developing Economies ◽  
Oecd Countries ◽  
Emerging Countries ◽  
Multidimensional Analysis ◽  
Foreign Experience ◽  
Managerial Risk ◽  
Corporate Risk ◽  
The Relationship

Our paper uses a multidimensional analysis to provide a better insight on the relationship between CEO foreign experience and corporate risk-taking. By decomposing the foreign experience of CEOs from developing economies such as Malaysia, we find that CEOs who have studied in OECD countries undertake higher levels of risk-taking and CEOs’ foreign working experience may have an adverse effect on risk-taking behaviour especially if the working experience is obtained from non-OECD countries. Additional analysis reveals that younger CEOs and family CEOs with foreign working experience matter in reinforcing the firms’ risk-taking activities. Overall, our findings provide implication for researchers and policymakers seeking to nurture risk-taking behaviours and innovativeness in emerging countries.

scholarly journals Role of Managerial Competencies and Risk-Taking Behavior in Financial Service Outreach of Microfinance Banks in Pakistan

2019 ◽  
Vol 15 (2) ◽  
pp. 25-42
Author(s):  
Fozia Taj ◽  
Keyword(s):  
Risk Taking ◽  
Positive Relationship ◽  
Financial Service ◽  
Primary Data ◽  
Managerial Competencies ◽  
Managerial Risk ◽  
Calculated Risk ◽  
Risk Taking Behavior ◽  
The Relationship

This study aims to investigate the relationship between the managerial risk-taking, managerial competencies and financial service outreach of microfinance banks in Pakistan. Primary data was collected from 36 branches of microfinance banks (MFBs) in nine cities. The unit of investigation is the branch manager and senior credit officer of each MFB branch. Descriptive statistics, correlation and regression, are used for data analysis. This study found a positive relationship between financial service outreach of MFBs and managerial competencies; financial service outreach also has a positive relationship with the risk-taking behavior of managers. There is a positive relationship between risk-taking behavior and financial service outreach of banks. The risk-taking behavior partially mediates the relationship between the managerial competencies and financial service outreach. The magnitude of the relationship between managerial competencies and outreach is significant, and its magnitude reduces when there is the mediation of managerial risk-taking behavior between them. Thus, managerial competencies, along with risk-taking behavior are the keys drivers of financial service outreach of MFBs. This study informs MFB’s top management and policymakers that competencies of managers and their calculated risk-taking propensities determined outreach performance of the MFBs.

scholarly journals The Effect of Managerial Share Pledges on the Cost of Debt

2021 ◽  
Vol 50 (6) ◽  
pp. 617-650
Author(s):  
Soonhong Park ◽  
Hyeon Sook Kim ◽  
Byungkwon Lim
Keyword(s):  
Ownership Structure ◽  
Risk Taking ◽  
Risk Premium ◽  
Firm Value ◽  
Positive Relationship ◽  
Cost Of Debt ◽  
Controlling Shareholders ◽  
Managerial Risk ◽  
The Cost ◽  
The Relationship

We examines whether share pledges by controlling shareholders influence a firm’s cost of debt. We also investigate whether the relationship between share pledges and the cost of debt stems from the managerial risk-taking incentives or pursuing the private benefits of controlling shareholders. We make three major findings. First, we find the cost of debt is higher in firms with share pledges than in firms without share pledges. Furthermore, we identify a positive relationship between the cost of debt and the level of share pledges. Second, we find that there is no increased corporate financial leverage or investment activities in firms with share pledges. Finally, our empirical evidence demonstrates that the positive relationship between share pledges and cost of debt is more pronounced for lower foreign institutional investor stakes or higher controlling shareholders ownership. Overall, the results indicate that share pledges by controlling shareholders negatively affect the cost of debt. However, the effect of share pledges on the cost of debt is differently influenced by a firm’s ownership structure. Our findings suggest that share pledges induce stockholder-bondholder conflict, and the bondholder requires more risk premium due to the decrease of firm value.

The relationship between managers' narcissism and overconfidence on corporate risk-taking

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Amirhosein Afzal Aghaei Naeini ◽  
Safoura Rouhi
Keyword(s):  
Multiple Regression ◽  
Risk Taking ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Content Type ◽  
Factors Affecting ◽  
Multiple Regression Models ◽  
The Board Of Directors ◽  
Corporate Risk ◽  
The Relationship

PurposeThe primary purpose is to investigate the relationship between narcissism and managers' overconfidence in listed companies' risk-taking.Design/methodology/approachIn this study, two criteria of signature and reward are used to measure manager's narcissism; manager's overconfidence, using multiple regression models and finally to measure companies' risk-taking by using companies' monthly returns. Multiple regression is employed to test the model using a sample of 890 firm-year participation on the Tehran Stock Exchange from 2012 to 2017 with panel data and model with fixed effects.FindingsThe findings indicate that the CEO's narcissism and the board of directors positively and significantly affect corporate risk-taking. Also, managers' overconfidence has a positive and significant relationship with corporate risk-taking.Originality/valueThe results of this study identified other factors affecting companies' risk-taking. This study also contributed to the development of the literature on narcissism, overconfidence and corporate risk-taking.

Firm Risk-Taking and CEO Visibility

2016 ◽  
Vol 06 (03) ◽  
pp. 1650010
Author(s):  
Yixin Liu ◽  
Yilei Zhang ◽  
Pornsit Jiraporn
Keyword(s):  
Standard Deviation ◽  
Risk Taking ◽  
Credit Ratings ◽  
Media Exposure ◽  
Total Risk ◽  
Firm Risk ◽  
Negative Effect ◽  
Corporate Risk ◽  
The Relationship ◽  
Positive Effect

This paper investigates the relationship between CEO visibility and corporate risk-taking. The empirical results show that more visible CEOs tend to take more risk. A one-standard-deviation shock in the CEOs media exposure results in a 6.53% rise in total risk. We further investigate the channels of risk-taking activities and find that more visible CEOs seek more R&D investments. The positive effect of CEO visibility on firm risk policies is clearly of concern to bondholders. Consistent with this view, we report that CEO visibility has a significant negative effect on firm credit ratings. Our results highlight the importance of CEO visibility on a crucial corporate outcome — the extent of corporate risk-taking.

Diffusion and Adoption of Corruption in Developing Economies: Evidence from Ghana

2018 ◽  
Vol 6 (6) ◽  
pp. 21
Author(s):  
Solomon A. Keelson ◽  
Thomas Cudjoe ◽  
Manteaw Joy Tenkoran
Keyword(s):  
Social Values ◽  
Developing Economies ◽  
Policy Formulation ◽  
Institutional Factors ◽  
Developing Economy ◽  
Theoretical Underpinning ◽  
Institutional Failure ◽  
The Social ◽  
The Relationship ◽  
And Diffusion

The present study investigates diffusion and adoption of corruption and factors that influence the rate of adoption of corruption in Ghana. In the current study, the diffusion and adoption of corruption and the factors that influence the speed with which corruption spreads in society is examined within Ghana as a developing economy. Data from public sector workers in Ghana are used to conduct the study. Our findings based on the results from One Sample T-Test suggest that corruption is perceived to be high in Ghana and diffusion and adoption of corruption has witnessed appreciative increases. Social and institutional factors seem to have a larger influence on the rate of corruption adoption than other factors. These findings indicate the need for theoretical underpinning in policy formulation to face corruption by incorporating the relationship between the social values and institutional failure, as represented by the rate of corruption adoption in developing economies.

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