Political association, managerial power heterogeneity, and corporate risk-taking in China

Chai, Bin; Mirza, Sultan Sikandar

doi:10.1080/1331677x.2019.1634613

Cited by 13 publications

(8 citation statements)

References 26 publications

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“…Their goal was to find out how Chinese enterprises innovate their marketing strategies, focusing mainly on innovation motivators and the evaluation of the level of innovations based on cooperation. Business risk in China is closely linked to political association and managerial power heterogeneity as the study of Chai and Sikandar Mirza (2019) shows. The study results provided interesting implications regarding enterprises' readiness for similar crisis situations.…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of the COVID-19 crisis on the perception of business risk in the SME segment

Čepel¹,

Gavurová²,

Dvorský³

et al. 2020

Journal of International Studies

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The aim of the study is to evaluate the impact of the COVID-19 crisis on entrepreneurs' attitudes towards the selected business risks in the SME segment. 1502 SMEs took part in the research, while 822 of them provided their responses regarding business risks before the COVID-19 crisis and 680 during the COVID-19 crisis in Czech and Slovak business environment. Market, financial, and personnel risks were considered by Czech SMEs as the three most significant business risks, both before and after the COVID-19 crisis. The statistically confirmed differences in SMEs' attitudes based on the time of providing responses are most apparent in the perception of financial and personnel risks. 35.7% SMEs in Czech Republic and 35.3% in Slovakia considered financial risk as one of the three most significant business risks before the COVID-19 crisis. During the crisis, it changed to 53.6% SMEs in Czech Republic and 59.7% in

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Section: Literature Reviewmentioning

confidence: 99%

The impact of the COVID-19 crisis on the perception of business risk in the SME segment

Čepel¹,

Gavurová²,

Dvorský³

et al. 2020

Journal of International Studies

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“…These findings are consistent with hypothesis 2 of the study, asserting that firms in the Chinese market mandate a higher power-distance management culture and this higher power distance improves the sustainability performance of these firms. The plausible explanation is that Chinese firms are inextricably linked to their national or regional cultures (Chai and Mirza, 2019; Liu et al ., 2018) where China's management process is influenced by a large population base, a collective culture and other influential factors. There is also a higher power imbalance and concentration in top management that minimizes internal disagreements and disputes and guarantees swift implementation of decisions (Ghosh, 2011; Hofstede, 2001; Trompenaars and Hampden-Turner, 2011).…”

Section: Resultsmentioning

confidence: 99%

Corporate digitalization, managerial power distance and corporate sustainability performance: evidence from China

Zhang

Mirza

Ahsan

et al. 2023

BPMJ

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PurposeThis study aims to investigate the impact of managerial power distance on the corporate sustainability performance of Chinese firms and to explore the regulatory role of corporate digitalization in the Chinese capital market.Design/methodology/approachThe study collects data from 2,632 A-share Chinese non-financial firms listed on Shanghai and Shenzhen stock exchanges during the period from 2010 to 2020. The authors apply different panel data regression techniques (fixed effects, GMM-System) to investigate the impact of managerial power distance on corporate sustainability performance and to explore the regulatory role of corporate digitalization in the Chinese capital market.FindingsThe results of the study show a positive relationship between high managerial power distance and the sustainability performance of Chinese non-financial firms. This positive relationship is particularly pronounced in Chinese state-owned enterprises (SOEs). The results also show that corporate digitalization increases the sustainability performance of Chinese firms. Further, corporate digitalization weakens the positive relationship between high-power distance and the sustainability performance of Chinese firms. These results are robust to alternate sustainability performance measures and various regression techniques.Originality/valueTo the best of the authors' knowledge, this is the first study that investigates the regulating impact of corporate digitalization on the relationship between managerial power distance and corporate sustainability performance in China.

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“…There is prior evidence showing that political connections induce higher risk-taking among connected firms, maybe in an effort to ensure the too-big-to fail phenomenon (Otchere et al , 2020). The greater risk evident amongst firms led by politically connected CEOs may be due to managers having more power and to their engaging in more aggressive investments, as shown by Chai and Sikandar Mirza (2019) in China.…”

Section: Resultsmentioning

confidence: 99%

Do CEO characteristics matter for corporate risk taking? Evidence from Russia

García-Gómez

Zavertiaeva

López‐Iturriaga

2023

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Purpose This paper aims to study the impact of CEOs’ personality and social connections on corporate risk-taking in the Russian market. Design/methodology/approach Using a sample of 93 large listed Russian corporations between 2008 and 2016, this study tests a range of personal traits, including the classical personal characteristics like age and tenure, some country-specific traits such as connections and military experience, as well as other human and social capital characteristics. Findings This study finds non-linear relationships between corporate risk-taking and CEO age and tenure. This study also finds that firms run by CEOs with military experience take more corporate risk. On the CEOs’ social capital side, this study’s results suggest that both political and educational connections are positively related to corporate risk-taking. Originality/value This study also tests some traits that have usually been ignored by the literature, such as marital and family status.

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Political association, managerial power heterogeneity, and corporate risk-taking in China

Cited by 13 publications

References 26 publications

The impact of the COVID-19 crisis on the perception of business risk in the SME segment

The impact of the COVID-19 crisis on the perception of business risk in the SME segment

Corporate digitalization, managerial power distance and corporate sustainability performance: evidence from China

Do CEO characteristics matter for corporate risk taking? Evidence from Russia

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