Risk attitudes in the board room and company performance: Evidence for an emerging economy

Denice Bodeutsch and Philip Hans Franses

No EI 2015-09, Econometric Institute Research Papers from Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute

Abstract: We personally interview thirteen board members of seven (out of the ten) companies listed at the Suriname Stock Exchange and ask questions about their past and current decisions and on their risk attitudes. Next, we correlate the answers to company performance in between 2003-2011, like earnings per share, stock returns, book value and market value. Recent literature on risk attitudes in the board, which usually draws on western economies, guides our formulation of hypotheses. At the same time we also perform some exploratory analyses. Our main result is that, for this emerging economy, more risk adversity leads to better firm performance.

Keywords: Executives characteristics; Company performance; Risk attitudes; Emerging economy (search for similar items in EconPapers)
JEL-codes: G00 G32 O16 (search for similar items in EconPapers)
Pages: 18
Date: 2015-05-01
New Economics Papers: this item is included in nep-cfn
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Journal Article: RISK ATTITUDES IN THE BOARD ROOM AND COMPANY PERFORMANCE: EVIDENCE FOR AN EMERGING ECONOMY (2016)
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