CEO Hubris and Firm Risk Taking in China: The Moderating Role of Managerial Discretion

2010 ◽  
Vol 53 (1) ◽  
pp. 45-68 ◽  
Author(s):  
Jiatao Li ◽  
Yi Tang
Keyword(s):  
Risk Taking ◽  
Managerial Discretion ◽  
Firm Risk ◽  
Moderating Role

The Moderating Role of Personal Relevance on Differential Priming of Anxiety and Sadness on Perceived Travel Risk: A Replication

2009 ◽  
Vol 104 (2) ◽  
pp. 500-508 ◽  
Author(s):  
Wen-Bin Chiou ◽  
Ming-Hsu Chang ◽  
Chien-Lung Chen
Keyword(s):  
Decision Making ◽  
Risk Taking ◽  
Personal Relevance ◽  
Risk Averse ◽  
Mood Repair ◽  
Neutral Mood ◽  
Motivational Influences ◽  
Relevance Condition ◽  
Moderating Role

Raghunathan and Pham conducted a pioneer study in 1999 on the motivational influences of anxiety and sadness on decision making and indicated that anxiety would motivate individuals to be risk averse, whereas sadness would motivate individuals to be risk taking. A replication study was employed in the domain of perceived travel risk. Compared to participants in a neutral mood, anxious participants showed higher perceived travel risk than sad participants. Moreover, the differential effect of anxiety and sadness on perceived travel risk was only pronounced under the high personal relevance condition, in which participants made personal decisions and expected that they would be affected by the outcomes. In general, the results extend the notion proposed by Raghunathan and Pham suggesting that travelers' implicit goals primed by anxiety or sadness used for mood-repair purposes appear to be moderated by personal relevance.

CEO outsiderness and firm performance in an emerging economy: The moderating role of managerial discretion

2018 ◽  
Vol 26 (5) ◽  
pp. 798-814
Author(s):  
Aylin Ataay
Keyword(s):  
Firm Performance ◽  
Chief Executive ◽  
Emerging Economy ◽  
Managerial Discretion ◽  
Ceo Succession ◽  
Direct Impact ◽  
And Performance ◽  
Succession Events ◽  
Moderating Role

AbstractInconsistent findings from prior research on the performance consequences of new Chief Executive Officer (CEO) origin led us to study the moderating effect of managerial discretion on the link between CEO outsiderness and firms’ post-succession performance. Data from 75 CEO succession events from an emerging economy show that new CEO outsiderness, without managerial discretion context influences, has no direct impact on post-succession performance. Further, our findings emphasise the moderating impacts of managerial discretion, stemming from factors in a company’s external and internal contingencies, which either strengthen or weaken the association between new CEO outsiderness and post-succession firm performance. It is found that market complexity, but not munificence, provides CEOs with more discretion in the Turkish context, thus strengthening the positive associations between CEO origin and firm performance. Firms inertia weakens both managerial discretion level and the association between CEO outsiderness and firm performance. The results show that internal corporate governance also matters. Finally, when a CEO assumes the dual role of both the chairman and the CEO, the link between CEO outsiderness and performance of the firm becomes stronger.

Which formula for corporate risk-taking around the world? Exploring happiness as the “black box”

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thao Phuong Tran ◽  
Anh-Tuan Le
Keyword(s):  
Risk Taking ◽  
Negative Influence ◽  
Current Debate ◽  
Alternative Measure ◽  
Firm Risk ◽  
Content Type ◽  
Financial Decisions ◽  
The World ◽  
Corporate Risk

PurposeThis paper examines how the degree of happiness affects corporate risk-taking and the moderating influence of family ownership of firms on this relationship.Design/methodology/approachThe authors use an international sample of 17,654 firm-year observations from 24 countries around the world from 2008 to 2016.FindingsUsing the happiness index from the World Happiness Report developed by the United Nations Sustainable Development Solutions Network, the authors show that a country's overall happiness is negatively correlated with risk-taking behavior by firms. The findings are robust to an alternative measure of risk-taking by firms. Further analyses document that the negative influence of happiness on firm risk-taking is more pronounced for family-owned firms.Practical implicationsThe paper is consistent with the notion that happier people are likely to be more risk-averse in making financial decisions, which, in turn, reduces corporate risk-taking.Originality/valueThis study contributes to the broad literature on the determinants of corporate risk-taking and the growing literature on the role of sentiment on investment decisions. The authors contribute to the current debate about family-owned firms by demonstrating that the presence of family trust strengthens the negative influence of happiness on corporate risk-taking, a topic that has been unexplored in previous studies.

ENTREPRENEURIAL ORIENTATION, PERFORMANCE AND THE MODERATING ROLE OF INSTITUTIONAL CAPITAL: A CASE STUDY OF FEMALE ENTREPRENEURS IN THAILAND

2019 ◽  
Vol 24 (02) ◽  
pp. 1950008
Author(s):  
CHONNATCHA KUNGWANSUPAPHAN ◽  
JIBON KUMAR SHARMA LEIHAOTHABAM
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Female Entrepreneurs ◽  
Policy Makers ◽  
Institutional Capital ◽  
The Relationship ◽  
Moderating Role

This study examines the relationship between entrepreneurial orientation of female entrepreneurs and business performance, and analyzes the moderating role of institutional capital on the entrepreneurial orientation-performance link. The results of the study highlight the important role of entrepreneurial orientation, including proactiveness, innovativeness and risk-taking, in directing business performance of female entrepreneurs and the complex interplay among entrepreneurial orientation variables. It also indicates that accessibility to institutional capital, through regulative, cognitive and normative dimensions, encourages female entrepreneurs to be more entrepreneurially oriented, thus leading to better business performance. In addition, this research proposes an integrated framework to guide policy makers on how institutional capital can play a crucial role in helping female entrepreneurs, stressing the importance of becoming entrepreneurial oriented and thus, achieving superior business performance.

scholarly journals Female on boards and the risk-taking of microfinance institutions: The moderating role of outreach

2020 ◽  
Vol 16 (2) ◽  
pp. 19-34
Author(s):  
Michael Adusei
Keyword(s):  
Risk Taking ◽  
Fixed Effects ◽  
Positive Impact ◽  
Microfinance Institutions ◽  
Female Representation ◽  
Return On Assets ◽  
Omitted Variable Bias ◽  
Variable Bias ◽  
Moderating Role

This study examines the effect of female on boards on risk-taking with data from 401 microfinance institutions (MFIs) drawn from 64 countries. The study also investigates whether the effect is sensitive to the outreach performance of MFIs. The MFIs sampled for this study are spread across the six MFI regions. The study measures MFI risk by its risk-taking Z-score and risk-adjusted return on assets. The fixed effects estimation technique, known to overcome the omitted variable bias, is deployed to analyze the data. The results show that female representation in the boardroom increases the risk-taking of MFIs. However, when female on boards interacts with the depth of outreach performance of an MFI, its positive impact on MFI risk is observed. It suggests that female directors are more likely to be beneficial to risk management in MFIs that lend more to indigent clients. Several tests, including an instrumental variable test for endogeneity, have been conducted to confirm the robustness of these results.

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