Management Power And Corporate Risk Taking

Corporate risk taking is the degree to which the enterprise is exposed to the risk in order to obtain high profits in the course of business operation.Active investment and timely improvement of research and development investment are initiative ways to bear the risk of embodiment.The behavior of corporate risk taking not only relates to the performance promotion and the long-term development,but also affects the social capital accumulation and the total factor productivity enhancement,increasingly becomes a reliable measure to observe the important fulcrum of China's economic situation and the potential of future economic growth.The management is the direct decision maker of the enterprise's production and operation.Power,as its representative in the discourse power and authority of the enterprise,will inevitably influence the choice of business strategy and the preference of risk-taking behavior.Based on this,this paper studies the impact of management power on corporate risk taking in the 2009-2016 China A-share listed company.First of all,this paper combs related literature of the corporate risk taking,management power and the relationship of both.Secondly,we define the relevant concepts,analyze the upper echelons theory,the theory of approach and inhibition of power,the principal-agent theory and optimal contract theory,expound the influence mechanism of management power on corporate risk taking.Then OLS is used to verify the above hypothesis.Through the empirical analysis,the following conclusions are drawn:?The management power has positive influence on corporate risk taking,the higher the management power,the greater the level of the corporate risk taking.?The management power of the corporate in the region with higher marketization process has more significant influence on the level of corporate risk taking.?Compared with state-owned enterprises,the management power of non-state-owned enterprises has more significant influence on corporate risk taking.?The influence of the marketization process and property rights nature on the corporate risk taking by the management power,the non-state-owned enterprises in the higher area of market-oriented process,the influence of management power on corporate risk taking is more significant.Finally,the paper puts forward some policy suggestions om how to strengthen corporate governance to rationally allocate management power,to adjust investment management strategy appropriately and to strengthen system environment construction.The innovation of the thesis is mainly embodied in:first,the management of power as a starting point to study its relationship with corporate risk taking,so that the traditional description of the characteristics of the management layer more specific.Second,from the marketization process and property rights of the nature of two to verify its moderating role,and further verify that both the management power on corporate risk taking.Compared with the existing research on the regulation of the property right system,it is more comprehensive and the empirical data can reflect the reality.Thirdly,on the measurement of management power,we choose the management shareholding,management salary,two-post-concurrent or not,education level and management term of five different indicators to describe the size of power,the direct plus sum and the principal component analysis two methods are used to obtain the management level power score,causes the management authority the description to be more comprehensive,objective.