CEO personal characteristics and firms’ risk-taking behaviour: the moderating role of family ownership
CEO personal characteristics and firms’ risk-taking behaviour: the moderating role of family ownership
Purpose: This study aims to examine the impact of chief executive officers’ (CEOs’) personal characteristics on firms’ risk taking and the moderating role of family ownership on this relationship. Design/methodology/approach: This study used 2,647 firm-year observations of non-financial firms listed on Pakistan Stock Exchange over the period 2013–2021. To test the hypotheses, the authors used ordinary least squares regression and, to resolve the possible endogeneity problem, the authors used system generalized method of moments technique. Findings: Drawing insights first from upper echelons theory, the authors report that CEOs with business, economics, finance and/or management educational background and female CEOs reduce firms’ risk-taking behaviour. Further, using insights from social and organizational identity theoretical perspectives, the results indicate that due to strong family affiliation and organizational identity, family owners exhibit risk aversion behaviour and moderate this relationship. Originality/value: This study provides novel evidence of risk averse behaviour of CEOs with business, economics, finance and/or management educational background and female CEOs along with moderating impact of family ownership on this relationship in an emerging economy. Overall, the results extend empirical support for upper echelons and social identity theories in an emerging market context.
CEO personal characteristics, family ownership, firm risk, organizational theory, social identify theory, upper echelon theory, Firm risk, Family ownership, Social identity theory, Upper echelon theory
165-187
Amin, Ali
ef3b87ed-783f-4a24-a42c-25028bf60a42
Ali, Rizwan
e9419873-e278-4105-a7fa-989f2647ce2f
Rehman, Ramiz Ur
86dc877b-d0e0-487d-afb5-4eccfd56280a
Ntim, Collins G.
1f344edc-8005-4e96-8972-d56c4dade46b
8 March 2024
Amin, Ali
ef3b87ed-783f-4a24-a42c-25028bf60a42
Ali, Rizwan
e9419873-e278-4105-a7fa-989f2647ce2f
Rehman, Ramiz Ur
86dc877b-d0e0-487d-afb5-4eccfd56280a
Ntim, Collins G.
1f344edc-8005-4e96-8972-d56c4dade46b
Amin, Ali, Ali, Rizwan, Rehman, Ramiz Ur and Ntim, Collins G.
(2024)
CEO personal characteristics and firms’ risk-taking behaviour: the moderating role of family ownership.
Gender in Management: An International Journal, 39 (2), .
(doi:10.1108/GM-02-2022-0034).
Abstract
Purpose: This study aims to examine the impact of chief executive officers’ (CEOs’) personal characteristics on firms’ risk taking and the moderating role of family ownership on this relationship. Design/methodology/approach: This study used 2,647 firm-year observations of non-financial firms listed on Pakistan Stock Exchange over the period 2013–2021. To test the hypotheses, the authors used ordinary least squares regression and, to resolve the possible endogeneity problem, the authors used system generalized method of moments technique. Findings: Drawing insights first from upper echelons theory, the authors report that CEOs with business, economics, finance and/or management educational background and female CEOs reduce firms’ risk-taking behaviour. Further, using insights from social and organizational identity theoretical perspectives, the results indicate that due to strong family affiliation and organizational identity, family owners exhibit risk aversion behaviour and moderate this relationship. Originality/value: This study provides novel evidence of risk averse behaviour of CEOs with business, economics, finance and/or management educational background and female CEOs along with moderating impact of family ownership on this relationship in an emerging economy. Overall, the results extend empirical support for upper echelons and social identity theories in an emerging market context.
Text
Accepted_Manuscript_23_June_2023_Gender Management_An International Journal
- Accepted Manuscript
More information
Accepted/In Press date: 23 June 2023
e-pub ahead of print date: 20 July 2023
Published date: 8 March 2024
Additional Information:
Publisher Copyright:
© 2023, Emerald Publishing Limited.
Keywords:
CEO personal characteristics, family ownership, firm risk, organizational theory, social identify theory, upper echelon theory, Firm risk, Family ownership, Social identity theory, Upper echelon theory
Identifiers
Local EPrints ID: 478574
URI: http://eprints.soton.ac.uk/id/eprint/478574
ISSN: 1754-2413
PURE UUID: e07972cd-7059-4fa7-8dcd-553d50b58334
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Date deposited: 05 Jul 2023 17:09
Last modified: 12 Jul 2024 01:27
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Contributors
Author:
Ali Amin
Author:
Rizwan Ali
Author:
Ramiz Ur Rehman
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