The Impact Of Board Characteristics On Enterprise Risk Taking Advantage From The Perspective Of Life Cycle

In recent years,with the constant changes in the business environment,companies are facing huge uncertainties;at the same time,they are facing fierce market competition.If enterprises want to grow and develop in such an environment,they must seize good investment opportunities and take risks on their own initiative in order to obtain excess returns.Enterprises taking the initiative to take risks are of great significance to their own development and social and economic development.The board of directors is the decision maker of business operations.According to the high-level echelon theory,the financial background,gender,age and other characteristics of board members will affect their decision-making behavior,which will affect the investment decisions of enterprises,and thus affect the level of risk-taking of enterprises.Therefore,it is of great significance to study the impact of board characteristics on the risk exposure of enterprises.However,enterprises at different stages of their life cycle have significant differences in terms of business environment,strategic objectives,and scale of enterprises.If this difference is not considered in the study,it may be difficult to find the nature of the problem.Dickinson(2007)found that companies can be classified as start-up,growth,mature or declining based on the different combinations of the three cash flow positive and negative signs associated with enterprise value creation.In addition,when board members make decisions,they may consider their own interests,so that the actual risk level of the enterprise does not match the risk level that the enterprise itself can bear.In this case,effective internal control can match the risk level that the company actually undertakes with the risk level that it can bear as much as possible.Based on the above factors,this paper takes the risk-taking level as the starting point.For enterprises in the growth stage and mature enterprises,the impact of board characteristics on the risk exposure of the enterprise and whether the internal control has a mediating effect between the two are studied separately.Firstly,theoretical analysis is carried out from the theory of high-level echelon,principal-agent theory,resource dependence theory and behavioral finance theory,and research hypotheses are proposed.Second,collect data,design variables,build models,and conduct empirical analysis.Through empirical analysis,the following conclusions are drawn:(1)There are differences between the enterprises in the growth period and the enterprises in the mature period in terms of the influence of the financial background of the chairman on the risk exposure of the enterprise.That is to say: when the enterprise is in the growth stage,the financial background of the chairman and the level of risk-taking of the company are positively correlated;when the enterprise is in the mature stage,the financial background of the chairman and the level of risk-bearing are negatively correlated.(2)There is no difference between the long-term enterprise and the mature enterprise in terms of the influence of the chairman's gender and the chairman's age on the enterprise's risk exposure.(3)There are differences between the enterprises in the growth period and the enterprises in the mature period in terms of the impact of the proportion of independent directors on the risk exposure of enterprises.That is to say: when the enterprise is in the growth stage,the proportion of independent directors is negatively correlated with the level of corporate risk tolerance;when the enterprise is in maturity,the proportion of independent directors and the level of risk commitment are positively correlated.(4)Internal control There is no intermediary effect between the chairman's gender and corporate risk taking.In addition,internal control plays a mediating role.Finally,combined with the research results,put forward corresponding policy recommendations.The main innovations in the paper are:(1)Introducing the life cycle theory,and studying the influence of the characteristics of board members on the risk-taking level of enterprises for enterprises in the growth stage and maturity stage.(2)Introduce internal control quality as a mediator variable.