Effects of corporate governance on risk taking in Taiwanese family firms during institutional reform

Su, Weichieh; Lee, Cheng-Yu

doi:10.1007/s10490-012-9292-x

Cited by 57 publications

(52 citation statements)

References 62 publications

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“…The results are consistent with Su and Lee (2012), where family companies are more conservative in risk-taking. The lower level of risk-taking in firms with family ownership can also be due to the motive to protect the family's capital and wealth within the company (Su and Lee, 2012).…”

Section: The Influence Of Family Ownership On a Company's Risk-takingsupporting

confidence: 83%

“…Another example lies in the company's debt policy, where the family company implements a lower debt rate than a non-family company, since debt is perceived to jeopardize the existence of the company. The risk-averse nature of family companies was also indicated in the studies by Anderson et al (2012), George et al (2005), Su and Lee (2012).…”

Section: Family Ownership and Corporate Risk-takingmentioning

confidence: 83%

“…This idea is supported by the finding that family firms invest less in R & D projects because such projects are considered to Advances in Economics, Business and Management Research,volume 36 be riskier (Le Breton-Miller et al, 2011;Munoz-Bullon and Sanchez-Bueno, 2011;Croci et al, 2011;Anderson et al, 2012;Su and Lee, 2012). Another example lies in the company's debt policy, where the family company implements a lower debt rate than a non-family company, since debt is perceived to jeopardize the existence of the company.…”

Section: Family Ownership and Corporate Risk-takingmentioning

confidence: 98%

“…Moreover, family firms are more focused on long-term policies and are reluctant to endanger their wealth (Su and Lee, 2012). In a company owned by the founding family, maximisation of the company's value is not the main concern because value is not the sole purpose.…”

Section: Family Ownership and Corporate Risk-takingmentioning

confidence: 99%

See 3 more Smart Citations

Ownership Structure and Company's Risk Taking Behaviour

Langit¹,

Adhariani²

2017

Proceedings of the International Conference on Business and Management Research (ICBMR-17)

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This study aims to determine the effect of ownership structure on risk-taking behaviour among the companies listed on the Indonesia Stock Exchange in the period 2013 to 2015 with a total of 390 firm observations. Companies' risk-taking is measured through income volatility over five years. There are two types of corporate ownership structures investigated in this study: family ownership and foreign ownership. By using fixed effect panel regression, the results showed that both ownership structures have a significant negative effect upon the company's risk taking behaviour, which implies that family and foreign ownership can function effectively to mitigate excessive risk-taking behaviour in a company. Type of paper: Empirical

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Section: The Influence Of Family Ownership On a Company's Risk-takingsupporting

confidence: 83%

Section: Family Ownership and Corporate Risk-takingmentioning

confidence: 83%

Section: Family Ownership and Corporate Risk-takingmentioning

confidence: 98%

Section: Family Ownership and Corporate Risk-takingmentioning

confidence: 99%

See 2 more Smart Citations

Ownership Structure and Company's Risk Taking Behaviour

Langit¹,

Adhariani²

2017

Proceedings of the International Conference on Business and Management Research (ICBMR-17)

View full text Add to dashboard Cite

show abstract

“…Su and Lee (2013) examine the influence of institutional change on the role of outside directors in family business risk taking. They report that in Taiwan, outside directors indeed reduce firms' risk taking but this relationship is weakened after the firm goes to public.…”

Section: Themes Of This Special Issuementioning

confidence: 99%

Strategic management in private and family businesses

Lü

Peng

et al. 2013

Asia Pac J Manag

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State‐owned equity participation and private sector enterprises' strategic risk taking: Evidence from China

Guo

et al. 2022

Manage Decis Econ

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Whether state‐owned equity participation in private enterprises to implement mixed ownership reform can help the sustainable development of private enterprises has been a widespread topic in recent years. Using data from China's A‐share private listed enterprises from 2014 to 2020, this paper adopts the fixed effect model to examine the impact of state‐owned equity participation on the strategic risk taking of private enterprises. The study finds that state‐owned equity participation can improve private enterprises' strategic risk taking, while alleviating financing constraints and improving corporate governance are important mechanisms. Heterogeneity analysis demonstrates that when enterprises belong to high‐tech enterprises and the industry competition is relatively high, state‐owned equity participation has a more remarkable effect in promoting strategic risk taking of private enterprises. Further research also finds that state‐owned equity participation can improve enterprises' innovation capability, which is embodied in the increase of patent output. This research enriches the relevant achievements of the mixed ownership reform of private enterprises and has certain theoretical and practical guidance for private enterprises' strategic choice.

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Effects of corporate governance on risk taking in Taiwanese family firms during institutional reform

Cited by 57 publications

References 62 publications

Ownership Structure and Company's Risk Taking Behaviour

Ownership Structure and Company's Risk Taking Behaviour

Strategic management in private and family businesses

State‐owned equity participation and private sector enterprises' strategic risk taking: Evidence from China

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