| The iron and steel industry plays an important role in the national economy,which is an absolute pillar industry.The development of the steel industry is directly related to the process of the modernization of the country.Under the current environment,the iron and steel enterprises are facing the development requirements of "going to capacity,going to stock and adjusting the structure".They need a lot of funds to support and their overall benefit is declining,so it is very easy to take financial risk.Risk preference,as one of the subtle and significant personal characteristics of the executives,will have a direct impact on the financial risk of the enterprise by affecting the management decision-making behavior of the executive.When the risk preference of the executives is at a high level,the management style of executives will tend to be risky and radical.When the risk preference of executives is at a lower level,the management decisions of senior executives will tend to be stable and conservative.However,it is important to note that,regardless of the high or low level of the risk preference of the enterprise executives,the management style is too radical or conservative,and it is unfavourable to the development of the enterprise,which may lead to the possibility of financial risk.In order to explore the relationship between the level of executive risk preference and the financial risk of the enterprise,this paper selects the listed iron and steel enterprises in China as the research sample,and studies the problem from the perspective of empirical analysis.First,this paper classifies the domestic and foreign research achievements and present situation related to the risk preference and financial risk,and defines the basic concepts of senior executives,risk preference,financial risk and so on,and introduces the principal-agent theory,behavioral finance theory and so on as the theoretical basis and support,which shows the current research background.On this basis,we put forward the purpose and significance of studying the relationship between executive risk preference and corporate financial risk.econdly,80 steel listed companies were selected as research samples.From the two dimensions of individuals and enterprises,seven indicators such as managers' personal wealth,shareholding ratio,company's current ratio,and equity ratiowere selected.The principal component analysis method was used.An evaluation and econometric model of the senior management's risk appetite level in steel enterprises was constructed.At the same time,the F-scoring method was used to construct an evaluation model for the company's financial risk level.Secondly,80 iron and Steel Listed Companies in the A stock market are selected as the research samples.In order to reasonably measure the level of executive risk preference,this paper adopts the principal component analysis method to construct the level measurement model of management risk preference of iron and steel enterprises,and selects the personal wealth of the managers from two dimensions of individual and enterprise respectively.And a total of seven indicators,such as shareholding ratio,company turnover ratio and property rights ratio,are applied to build the model.At the same time,in order to measure the financial risk level of enterprises,this paper selects F scoring method to build the financial risk level measurement model of enterprises.Thirdly,we use the previous model to measure the level of executive risk preference and the level of corporate financial risk.In view of the measurement results,the relationship between the level of executive risk preference and the financial risk of the enterprise is analyzed by establishing a multiple regression model.Finally,according to the results of the empirical analysis,we put forward some reasonable suggestions on the adjustment of senior executive risk preference and business operation,so as to help enterprises to avoid financial risks as much as possible. |
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