A Study On The Relationship Of Managerial Power,Risk-taking And Corporate Value

With the development of high-tech industries,the world economy has promoted the society development at a speed several times fast than traditional economic development.The competition between countries has quietly changed into competition between the comprehensive national strength represented by advanced technology.How to make high-tech enterprises improve corporate value better and enhance comprehensive competitiveness has become a direction of development,nowadays.From the perspective of corporate governance of high-tech enterprises,this study believes that top manager is the core of enterprises,and they have decision-making power over the daily business activities.Due to the uncertainty of external environment and the complexity of internal technology,every opportunity encountered or every decision made will have a significant impact on the performance of the company,so the condition of the manager's power is particularly important.Since the establishment of principal-agent relationship in enterprises,the research on executives has been a hot topic in academic field.Combining with existing research,there is an inevitable connection between the condition of managers' power and corporate value,but the relationship that managerial power influence the value of the enterprise still has great research potential.Since the contradiction of the principal agent has always existed,the trustee(manager)who has larger power will treat risk-taking as a channel for interest satisfaction under the condition conclude information asymmetry and imperfect supervision,and the normal situation of risk aversion will be changed.Therefore,this study explores the mechanism between managerial power and corporate value from the perspective of risk-taking.In addition,this paper also selects corporate social responsibility performance as a regulatory variable to examine its impact on managerial power and risk-taking.This study summarizes the domestic and foreign research literature on managerial power,risk commitment,corporate value and corporate social responsibility,firstly.Based on theoretical interpretation and literature analysis,the conceptual model is constructed,meanwhile the hypothesis of mediating effect of risk-taking is proposed.hypothesis about the moderating effect of corporate social responsibility is also proposed.The data this study needed are from 260 high-tech companies and empirical analysis is conducted by software Stata,partially verifying the hypotheses proposed in this study.The conclusions are as follows: 1.Managerial power is significantly positively correlated with corporate value enhancement;2.There is a significant positive correlation between the level of enterprise risk-taking and the value of the enterprise;3.The higher the manager's power,the higher the level of risk-taking;4.The risk-taking plays a mediating role between managerial power and corporate value,and the personal power of the manager can also influence the value of the enterprise through risk-taking;5.The positive moderating effect of the corporate social responsibility is not significant;6.Before the "crisis" comes,the managerial power can promote the level of enterprise risk tolerance,after the "crisis",managerial power would weaken the level of risk-taking of companies.Finally,based on theoretical analysis and empirical analysis,main points of this research summarized,and I make some feasible suggestions for companies.At the same time,I explain the limitations of this study and look forward to the related research prospects.On the one hand,this study enriches the theoretical results of current business management,on the other hand,it provides guidance of the operation practice for enterprises.