How does CEO demission threat affect corporate risk-taking?

Tan, Cen; He, Chengying; Shi, Zhiyong; Mo, Guoli; Geng, Xiaoxu

doi:10.1016/j.jbusres.2021.10.034

Cited by 20 publications

(6 citation statements)

References 20 publications

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“…Better‐performed firms with higher sales growth rates are more likely to take relatively higher investment risks, as documented by Zhang and Luo (2021) and Tan et al. (2022).…”

Section: Empirical Analysismentioning

confidence: 71%

“…Song et al (2021) also conclude that big firms usually have better long-term planning, so these firms are more willing to take more risks proactively. Better-performed firms with higher sales growth rates are more likely to take relatively higher investment risks, as documented by Zhang and Luo (2021) and Tan et al (2022).…”

Section: Empirical Analysismentioning

confidence: 93%

“…The level of corporate risk-taking reflects the extent of a firm's ability to undertake risk in their investment activities. Existing literature, for example Tan et al (2022), documents that the level of firm risk-taking can be impacted and measured by the volatility of firm-level profitability. This assumes that large variations in firm performance may indicate firms have undertaken new investment activities, which in turn may cause more volatile performance, as documented in Cirillo et al (2021).…”

Section: Datamentioning

confidence: 99%

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CEO social capital, business environment, and the level of corporate risk‐taking in China

Su,

Fu,

Zou

et al. 2023

Accounting & Finance

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We find a significant positive role of chief executive officer (CEO) social capital on the level of corporate risk‐taking for Chinese listed firms from 2008 to 2019. We reveal that a better business environment tends to reduce this positive relationship. In addition, we also find that corporate innovations provide moderation effects on the relationship. Further analysis of heterogeneity tests on firm characteristics suggests that CEO social capital's effect on corporate risk‐taking is significant and stronger for non‐state‐owned enterprises, firms with fewer female directors on their board, and firms with more cash holdings.

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“…Better‐performed firms with higher sales growth rates are more likely to take relatively higher investment risks, as documented by Zhang and Luo (2021) and Tan et al. (2022).…”

Section: Empirical Analysismentioning

confidence: 71%

Section: Empirical Analysismentioning

confidence: 93%

Section: Datamentioning

confidence: 99%

See 1 more Smart Citation

CEO social capital, business environment, and the level of corporate risk‐taking in China

Su,

Fu,

Zou

et al. 2023

Accounting & Finance

View full text Add to dashboard Cite

show abstract

“…The common indicators to measure the risk‐taking level of enterprises mainly include profit volatility, stock return volatility, and debt ratio. Considering the volatility of China's stock market and the focus of our research on the management of enterprises, we use the profit volatility of enterprises to measure the risk‐taking level of enterprises according to the practice of recent research (Song et al, 2021; Tan et al, 2022). The specific calculation method is as follows.…”

Section: Further Extensionsmentioning

confidence: 99%

Invisible governance: Cognitive ability and corporate social responsibility

Zhuang

Lin

2023

Manage Decis Econ

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Our research examines the effect of cognitive ability on corporate social responsibility (CSR) based on the data of listed companies in China's A‐share market. As an informal system, cognitive ability plays an important governance role in CSR performance. The channel analysis shows that cognitive ability stimulates CSR through three mechanisms: improving external supervision, strengthening internal control, and promoting external supervision to boost internal control. In addition, the effect of cognitive ability on CSR performance is heterogeneous according to the different ownership of enterprises. Furthermore, we find that cognitive ability has an important supervisory effect on the CSR of state‐owned enterprises (SOEs) with greater financing constraints. Mitigating the financing constraints and the operating risks of non‐SOEs can better improve governance effect of cognitive ability on them, reducing their practices of CSR motivated by rent‐seeking.

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“…Corporate risk‐taking refers to the uncertainty in future returns. Following Tan et al (2021), we adopt earnings volatility to measure the level of corporate risk‐taking. High volatility of stock returns means that corporate risk‐taking is high.…”

Section: Underlying Mechanismsmentioning

confidence: 99%

Managerial inclusiveness and corporate innovation in China

Deng,

2023

Accounting & Finance

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This study explores how managerial inclusiveness affects corporate innovation. Using an annual dataset of A‐share Chinese listed companies from 2008 to 2021, we find that managerial inclusiveness is positively related to corporate innovation. Market competition and team heterogeneity positively moderate the relationship between managerial inclusiveness and innovation. In addition, managerial inclusiveness in state‐owned enterprises plays a more significant role in promoting corporate innovation than it does in non‐state‐owned enterprises. By investigating the mechanism of influence, we found that inclusive managers can promote corporate innovation by relaxing internal controls and increasing corporate risk‐taking.

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How does CEO demission threat affect corporate risk-taking?

Cited by 20 publications

References 20 publications

CEO social capital, business environment, and the level of corporate risk‐taking in China

CEO social capital, business environment, and the level of corporate risk‐taking in China

Invisible governance: Cognitive ability and corporate social responsibility

Managerial inclusiveness and corporate innovation in China

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