 How does CEO demission threat affect corporate risk-taking?Chunzhi Tan, Chengying He, Zhanzhong Shi, Guoli Mo and Xiaoxu Geng Journal of Business Research, 2022, vol. 139, issue C, 935-944 Abstract: This study investigates the nonlinear relationship between CEO demission threats and corporate risk-taking levels. We first estimate the degree of CEO demission threats and then examine how CEO demission threats affect the level of corporate risk-taking. Using data from China's A-share listed companies from 2007 to 2017, we find that the nonlinear relationship can be represented by an inverted “U” in which moderate CEO demission threats increase the level of corporate risk-taking; however, imminent demission threats to CEOs reduce their level of corporate risk-taking. Further evidence demonstrates that the state-owned attributes of companies weaken the effect of the CEO demission threat on corporate risk-taking and that the eastern attributes of companies strengthen the effect of the CEO demission threat on corporate risk-taking. This study extends the relevant research on CEO demission threat and corporate risk-taking and provides great inspiration for CEOs’ business decision-making and corporate sustainable development. Keywords: Demission Threat; Risk-taking; Ownership Property; Regional Difference (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:139:y:2022:i:c:p:935-944 DOI: 10.1016/j.jbusres.2021.10.034 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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