The relationships between CEO characteristics and strategic risk-taking in family firms

Martino, Pierluigi; Rigolini, Alessandra; D’Onza, Giuseppe

doi:10.1080/13669877.2018.1517380

Cited by 43 publications

(79 citation statements)

References 80 publications

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“…A CEO is influenced by its characteristics when undertaking strategic decisions associated with risk (Godos‐Díez et al, 2020; Martino et al, 2020). However, there is still not enough literature to conclude the association between a CEO characteristic (i.e., CEO tenure) and environmental disclosure.…”

Section: Theory Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…CEO as the central to a strategic decision has been emphasized in most studies (Altarawneh et al, 2020; Godos‐Díez et al, 2020), but sometimes the CEO decision leads to insignificant association with risk‐taking (Martino et al, 2020). Nonetheless, the combined role (CEO and chairperson) may create a burdensome responsibility, which can negatively affect the strategic decision (i.e., decision to increase environmental disclosure).…”

Section: Theory Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…Central to this definition is the role of the chief executive officer (CEO) because the CEO undertakes strategic decisions, which includes the supervision of the integration of listed firm's reporting (Altarawneh et al, 2020; European Commission, 2001; Godos‐Díez et al, 2020; Haider et al, 2019). However, there is an associated risk of unclarity of reporting that may not meet stakeholder expectations (Martino et al, 2020). Understanding the CEO's role and its characteristics as the world pursue the firm's inclusion in the global sustainable development agenda needs a scholarly take.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

CEO characteristics and environmental disclosure of listed firms in an emerging economy: Does sustainability reporting format matter?

Oware

Awunyo‐Vitor

2021

Bus Strat Dev

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The study's purpose examines chief executive officer (CEO) characteristics, sustainability reporting format, and environmental disclosure of listed firms in India. Eight hundred firm‐year observations across India's firms applied panel regression with random effect assumptions and general method of moment. The first findings show that reporting format has a positive and statistically significant association with environmental disclosure. The second findings show that CEO age and CEO tenure have an insignificant association, but CEO duality negatively associates with environmental disclosure. The third findings show that CEO characteristics (tenure and duality) × report format is insignificant. However, the CEO age × report format has a positive and statistically significant association with listed firms' environmental disclosure in India. The strategic implication shows that the choice of a stand‐alone sustainability reporting in environmental communication disclosure is a strategic benefit that secures strategic investors and investment in the firm. For the firm to be recognized as a strategic partner in global sustainable development goals, CEOs with longer tenure and aged CEOs engagements are an unsuitable investment, which Indian firms must not pursue. Endogeneity problems across panels are addressed in this study. This study's novelty examines the interactive effect of CEO characteristics and sustainability report format on environmental disclosure in India.

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Section: Theory Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Theory Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

CEO characteristics and environmental disclosure of listed firms in an emerging economy: Does sustainability reporting format matter?

Oware

Awunyo‐Vitor

2021

Bus Strat Dev

View full text Add to dashboard Cite

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“…Furthermore, risk-averse people are tending to the overestimate of negative outcomes, most important for them to higher perceive risk although risk-pursuing people remain similarly to overvalue the positive results subsidizing towards a risk in lower perceived of the individual (Schneider & Lopes, 1986). Sitkin and Weingart (1995), Prietzel (2019) and Martino, Rigolini, and D'Onza (2018) further explained that propensity of risk negatively affected on risk perception (RP). Moreover, in the financial services context, Gibson et al (2013) was conducted a study over 2000 respondents from the USA as well as it is generally found in individually female and male respondents who were perceived stock in the market towards riskier at the moment matched to the time which is about the GFC remained more similarly to have less scores in risk tolerance (RT).…”

Section: The Relationship Risk Tolerance Risk Perception and Asset Allocationmentioning

confidence: 99%

The Combined Effect of Risk Perception and Risk Tolerance on the Investment Decision Making

Aeknarajindawat¹

2020

JSSI

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The increase in the investment complications in the current environment has increase the need of the good quality financial advices services. Based on this, the aim of the study is being to investigate the join effect of risk tolerance (RT) and risk perception (RP) on the individual risky asset allocation decision along with the other essential variable in the context of financial advice which is consist of financial literacy and trust. For this purpose, data was collected from the 210 financial advisors of the banking sectors by using a convenient sampling technique which yield a 70% response rate. For analysis, Structural Equation Modeling (SEM) technique was employed. The SEM analysis has shown that trust has positive and significant association with the RP and FL, and FL also has a positive and significant association with the risk tolerance and while insignificant with the RP. In addition, RP and RT also have a positive and significant association with the asset allocation in the banking sector of Indonesia. Based on the findings, current study added a body of literature in the empirical findings which could become a new of area of research in future. The research limitations and future directions are also discussed at the end of the study.

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“…Such a focus of attention can be even more significant when founders have held the CEO position for a longer time (Huybrechts, Voordeckers, and Lybaert 2013). Such aspirations encourage founder-CEOs to bear more risk, assume more responsibility for shareholders, and stay with the firm after an IPO, rather than cashing out and leaving (Martino, Rigolini, and D'Onza 2020). Fischer and Pollock (2004) have shown that the tenure of a CEO at an IPO firm provides important buffering during the structural transformations that reduce the likelihood of the firm's failure after it goes public.…”

Section: Ceos' Tenurementioning

confidence: 99%

Financial wealth, socioemotional wealth, and founder exits: an empirical examination of Chinese IPOs

Jiao

Wang

Alon

2021

Entrepreneurship & Regional Development

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Initial public offerings (IPOs) are typically viewed as the peak of entrepreneurial success, providing founder-CEOs a chance to profitably exit. Founder-CEOs, however, are often motivated by non-financial considerations in addition to the desire to amass wealth. According to the behavioral agency model, the founder-CEOs' framing of gains vs. losses of their wealth creation at IPO determines their risk aversion vs. risk taking behaviors. In addition, the behavioral agency model argues that founder-CEOs with a great deal of socioemotional wealth fear losing that wealth. This fear will attenuate their aversion to losing financial wealth. To test our model, we collected a sample of 130 entrepreneurial IPOs from 2004 to 2009 in China whose founder-CEOs left the firm after it went public. The results confirm a U-shaped relationship between the founder-CEOs' financial wealth and their exit speed after the IPO. A high level of socioemotional wealth, exemplified by the CEOs' tenure, a higher ratio of insiders on the board, and the age of the stock market, negatively moderates the effect of financial wealth. We contribute to the literature by providing empirical support for the behavioral agency model and founder-CEO exits in China by examining both financial and socioemotional wealth.

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The relationships between CEO characteristics and strategic risk-taking in family firms

Cited by 43 publications

References 80 publications

CEO characteristics and environmental disclosure of listed firms in an emerging economy: Does sustainability reporting format matter?

CEO characteristics and environmental disclosure of listed firms in an emerging economy: Does sustainability reporting format matter?

The Combined Effect of Risk Perception and Risk Tolerance on the Investment Decision Making

Financial wealth, socioemotional wealth, and founder exits: an empirical examination of Chinese IPOs

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