scholarly journals CEO Personal Risk-Taking and Corporate Policies

2012 ◽  
Author(s):  
Matthew D. Cain ◽  
Stephen B. McKeon
Keyword(s):  
Risk Taking ◽  
Corporate Policies ◽  
Personal Risk

scholarly journals CEO Personal Risk-Taking and Corporate Policies

2016 ◽  
Vol 51 (1) ◽  
pp. 139-164 ◽  
Author(s):  
Matthew D. Cain ◽  
Stephen B. McKeon
Keyword(s):  
Chief Executive Officer ◽  
Risk Taking ◽  
Chief Executive ◽  
Project Selection ◽  
Return Volatility ◽  
Firm Risk ◽  
Corporate Policies ◽  
Personal Risk ◽  
Scope Of The Firm ◽  
Corporate Risk

AbstractThis study analyzes the relation between chief executive officer (CEO) personal risk-taking, corporate risk-taking, and total firm risk. We find evidence that CEOs who possess private pilot licenses (our proxy for personal risk-taking) are associated with riskier firms. Firms led by pilot CEOs have higher equity return volatility, beyond the amount explained by compensation components that financially reward risk-taking. We trace the source of the elevated firm risk to specific corporate policies, including leverage and acquisition activity. Our results suggest that nonpecuniary risk preferences revealed outside the scope of the firm have implications for project selection and various corporate policies.

The application of fuzzy neural network techniques in constructing an adaptive car-following indicator

1998 ◽  
Vol 12 (3) ◽  
pp. 231-241 ◽  
Author(s):  
PAI-CHUAN LU
Keyword(s):  
Neural Network ◽  
Risk Taking ◽  
Fuzzy Neural Network ◽  
Membership Functions ◽  
Learning Capability ◽  
Car Following ◽  
Personal Risk ◽  
Fuzzy Neural ◽  
Mechanical Factors ◽  
Artificial Network

This paper proposes a fuzzy neural network (FNN) based approach to construct an individual-oriented car-following system. The feature of this system is firstly to incorporate a personal risk-taking factor in addition to other mechanical factors as the input parameters. Through the learning capability of artificial network, the complex membership functions between the input factors and the output (i.e., the appropriate car-following headway) can be efficiently established, and then the fuzzy logic rules can be properly constructed. The performance of the FNN system is finally assessed against the field data. The results are inspiring that the system is proven capable of providing highly accurate predictions of the required car-following headways from person to person at various speeds. The success of this study provides some clues of utilizing FNN techniques in exploring some individual-oriented machines.

Personal Bankruptcy Laws and Corporate Policies

2019 ◽  
Vol 55 (7) ◽  
pp. 2397-2428
Author(s):  
Yi-Wen Chen ◽  
Joseph T. Halford ◽  
Hung-Chia Scott Hsu ◽  
Chu-Bin Lin
Keyword(s):  
Risk Taking ◽  
Bargaining Power ◽  
Labor Costs ◽  
Personal Bankruptcy ◽  
Corporate Policies ◽  
High Unemployment ◽  
Welfare Losses ◽  
Personal Wealth ◽  
Unemployment Risk ◽  
Regulation Reform

In this article we examine whether and how changes in personal bankruptcy laws, viewed as a shock to employees’ expected personal wealth, affect corporate policies. Following a reform in personal bankruptcy laws that limits individuals’ access to bankruptcy protection, firms more affected by this regulation reform increase labor costs, reduce investment, and engage in less risk taking. The effects are stronger when employees have more bargaining power. Furthermore, firms in industries characterized by high unemployment risk reduce leverage. These results support the view that firms choose more conservative policies to mitigate employees’ expected welfare losses.

Risk Perception: Unrealistic Optimism or Realistic Expectancy

1999 ◽  
Vol 84 (3) ◽  
pp. 731-738 ◽  
Author(s):  
Paolo Todesco ◽  
Stephen B. Hillman
Keyword(s):  
Risk Perception ◽  
Undergraduate Students ◽  
Risk Taking ◽  
Low Risk ◽  
Unrealistic Optimism ◽  
Negative Consequences ◽  
Personal Risk ◽  
Older Adolescents ◽  
Risk Takers ◽  
Risk Taking Behaviors

The current study investigated risk perception and Unrealistic Optimism as a function of involvement in risk. 74 undergraduate students were asked to rate how likely they were to encounter various negative consequences relative to various comparison targets (child, peer, and parent) and specified their actual involvement in risk-taking. Over-all, 37 High and 37 Low Risk-takers rated harmful events similarly, adding support for disputing the hypothesis that risk-takers consider themselves to be invulnerable. When these older adolescents compared themselves with children, they rated their personal risk of engaging in the health threatening behaviors as higher. Adolescents can realistically appraise the differences between themselves and children and view themselves as more likely to encounter the negative outcomes of risk-taking behaviors. Implications are discussed.

A Study of Risk-Taking Propensities among Small Business Entrepreneurs and Managers: an Empirical Evaluation

1984 ◽  
Vol 8 (3) ◽  
pp. 31-40 ◽  
Author(s):  
R. Keith Schwer ◽  
Ugur Yucelt
Keyword(s):  
Small Business ◽  
Analysis Of Variance ◽  
Risk Taking ◽  
Empirical Evaluation ◽  
Business Risk ◽  
Personal Risk ◽  
Business Experience ◽  
Variance Risk

This study investigates the risk-taking propensities of a sample of Vermont small business entrepreneurs and managers. Risk-taking propensities as measured by responses to Kogan-Wallach's risk-taking questions varied more for business risk situations than for personal risk, career risk, or trivial risk situations. In addition, there were significant differences in risk-taking propensities according to differences in respondents’ age, education, years of business experience, years owned business, and the size and type of their business using the method of analysis of variance. Risk-taking propensities also varied significantly according to respondents’ motivation as to how they feel about themselves, the probability of improving themselves, and the probability of accomplishing something useful.

The effects of ownership concentration and corporate governance on corporate risk-taking

2019 ◽  
Vol 33 (1) ◽  
pp. 252-267 ◽  
Author(s):  
Seksak Jumreornvong ◽  
Sirimon Treepongkaruna ◽  
Panu Prommin ◽  
Pornsit Jiraporn
Keyword(s):  
Corporate Governance ◽  
Risk Taking ◽  
Ownership Concentration ◽  
Corporate Policies ◽  
Content Type ◽  
Instrumental Variable Analysis ◽  
Developed Economies ◽  
Concentrated Ownership ◽  
Corporate Risk ◽  
Variable Analysis

Purpose This study aims to investigate the effects of ownership concentration and corporate governance on the extent of risk-taking in an important emerging economy – Thailand. Design/methodology/approach The results are corroborated by additional analysis, including an instrumental-variable analysis and propensity score matching. Findings Large owners are under-diversified and are thus more vulnerable to the firm’s idiosyncratic risk. Therefore, they tend to advocate less risky corporate policies and strategies. Consistent with this notion, the authors find that more concentrated ownership induces firms to take significantly less risk. Originality/value Ownership in Thai firms is substantially more concentrated than that in developed economies, providing a unique opportunity to study the effect of highly concentrated ownership on risk-taking.

Factors Influencing Involvement in Farm Accidents

1995 ◽  
Vol 81 (2) ◽  
pp. 592-594 ◽  
Author(s):  
W. Andrew Harrell
Keyword(s):  
Risk Taking ◽  
Work Experience ◽  
Protective Clothing ◽  
Farming Practices ◽  
Personal Risk ◽  
Factors Influencing ◽  
Lower Likelihood ◽  
Self Administered Questionnaire

A self-administered questionnaire completed by 683 male farmers showed individuals incurring a farming-related injury more likely to score higher on a measure of personal risk-taking and to believe that accidents were inevitable (fatalism). Specific safe farming practices—wearing protective clothing and operating machinery safely—were associated with lower likelihood of injury. Traditional predictors of involvement in accidents (age, exposure to hazards, and work experience) were not significant.

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