Entrepreneurs' hobbies and corporate risk taking: Evidence from China

Ciji Song, Abraham Y. Nahm and Zengji Song

International Review of Financial Analysis, 2021, vol. 77, issue C

Abstract: This paper studies the relationship between the hobbies of private entrepreneurs and the level of corporate risk taking by analyzing Chinese private listed companies from 2010 to 2018 as samples. The results show that entrepreneurs' hobbies can directly reflect the risk preference of entrepreneurs, and entrepreneurs' hobbies classified by their risk level are significantly positively correlated with corporate risk taking. However, the political background and marital status of entrepreneurs can both inhibit the effect of entrepreneurs' hobbies on corporate risk taking, leading to the reduction of the level of corporate risk taking. The above conclusions were still valid after the robustness tests. This paper enriches and expands the relevant research about entrepreneurs' personal characteristics and corporate risk taking. It also has some practical implications for private enterprise managers' hiring decisions and corporate governance issues.

Keywords: Entrepreneur hobbies; Risk taking; Corporate governance; Private enterprise (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521921001861
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:77:y:2021:i:c:s1057521921001861

DOI: 10.1016/j.irfa.2021.101856

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().