An Empirical Study Of The Relation Between Economic Policies And Managers' Risk Preference

With the rise of behavioral finance, the assumption of rational people gradually withdraws in the field of corporate governance, the study of risk preferences of managers is getting more and more attention. However, the researches of manager risk preferences mainly focus on the impact from their individual characteristics, other than the outside factors beside the managers themselves to be addressed. While, the economic environment, legal environment and the climate of opinion around the managers probably impact the managers' risk appetite and risk management decisions, even play a crucial impact. Therefore, this article analyzes the relation between economic policy, economic development and managers' of risk preference, wishing to explain the linkages between microeconomic variables and macroeconomic variables from the perspective of behavioral finance, and establish the policy transmission mechanism as Macroeconomic Variables-Characteristics of managers-Microeconomic variables. This research has important theoretical significance and practical significance.This paper takes the fiscal and monetary policy multiplier as the variables presenting the macroeconomic policy, and takes the choice between safe asset and risk asset as the managers' risk preference. Analyzes the relation between economic policies and managers' risk preference. The result shows that: (1)The relation between macroeconomic policy multiplier and managers' risk preference is significant; (2)The relation between tax multiplier, transfer payment multiplier and managers' risk preference is more significant; the relation between government expenditure multiplier, monetary multiplier and managers' risk preference is less significant; (3)The relation between FDI and managers' risk preference is significant. (4)The relation between economic growth and managers' risk preference is significant.