International Evidence About the Influence of Large Shareholders on Corporate Risk Taking

2013 ◽  
Author(s):  
Jose Maria Diez Esteban ◽  
Conrado Diego García Gómez ◽  
Félix J. López-Iturriaga
Keyword(s):  
Risk Taking ◽  
International Evidence ◽  
Large Shareholders ◽  
Corporate Risk

scholarly journals Are religion and culture relevant for corporate risk-taking? International evidence

2019 ◽  
Vol 22 (1) ◽  
pp. 36-55 ◽  
Author(s):  
José María Díez-Esteban ◽  
Jorge Bento Farinha ◽  
Conrado Diego García-Gómez
Keyword(s):  
Risk Taking ◽  
International Evidence ◽  
Corporate Risk

Multiple Large Shareholders and Corporate Risk-taking: Evidence from French Family Firms

2016 ◽  
Vol 22 (4) ◽  
pp. 697-745 ◽  
Author(s):  
Sabri Boubaker ◽  
Pascal Nguyen ◽  
Wael Rouatbi
Keyword(s):  
Risk Taking ◽  
Family Firms ◽  
Large Shareholders ◽  
French Family ◽  
Corporate Risk

CEO power, corporate risk taking and role of large shareholders

2018 ◽  
Vol 10 (1) ◽  
pp. 55-72 ◽  
Author(s):  
Junaid Haider ◽  
Hong-Xing Fang
Keyword(s):  
Risk Taking ◽  
Generalized Method Of Moments ◽  
Negative Relationship ◽  
Dynamic Panel Data ◽  
Ceo Power ◽  
Total Risk ◽  
Content Type ◽  
Large Shareholders ◽  
Corporate Risk ◽  
The Impact

Purpose This paper aims to investigate whether a powerful chief executive officer (CEO) impacts corporate risk taking in the distinctive institutional and market setting of China? Second, in case such relationship exists, the paper further aims to investigate whether the presence of large shareholders affects it, and finally, whether this effect of large shareholders varies in state-owned enterprises (SOEs) and non-state-owned enterprises (NSOEs). Design/methodology/approach The authors have used a sample of 1,502 Chinese firms listed on Shanghai and Shenzhen stock exchanges. Sample period is 2008-2013. Besides conventional fixed-effect regression, dynamic panel data estimation (generalized method of moments) is applied to address the potential endogeneity. Findings The results show that CEO power is negatively related with corporate risk taking in two risk proxies, i.e. total risk and idiosyncratic risk. Second, the presence of large shareholders significantly affects this relationship, but does not change the primary negative relationship between CEO power and corporate risk taking. Finally, the results show that the relationship between CEO power and corporate risk taking is different in SOEs and NSOEs. The findings of this paper contend the organizational and behavioral theory viewpoint that individual decisions are more extreme. Practical implications This study provides useful implication for policymakers and suggests that while evaluating CEO’s performance, institutional and market settings should be considered. Originality/value This study provides new insights on the impact of CEO power on corporate risk taking under the two distinctive features in a developing country, i.e. presence of large shareholders and state-owned enterprises.

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