PDG Hubris et entreprise prise de risque en Chine: le rôle modérateur de la discrétion de gestion (doucment en anglais)
Étude de cas : PDG Hubris et entreprise prise de risque en Chine: le rôle modérateur de la discrétion de gestion (doucment en anglais). Recherche parmi 302 000+ dissertationsPar xboxatomic • 5 Mars 2012 • Étude de cas • 480 Mots (2 Pages) • 1 958 Vues
CEO HUBRIS AND FIRM RISK TAKING IN CHINA: THE
MODERATING ROLE OF MANAGERIAL DISCRETION
JIATAO LI
Hong Kong University of Science and Technology
YI TANG
Hong Kong Polytechnic University
This study linked CEO hubris to firm risk taking and examined the moderating role of
managerial discretion in this relationship. Drawing on upper echelons theory and
behavioral decision theory, we developed and tested hypotheses using original survey
data from 2,790 CEOs of diverse manufacturing firms in China. The positive relationship
between CEO hubris and firm risk taking was found to be stronger when CEO
managerial discretion was stronger: when a firm faced munificent but complex markets;
had less inertia and more intangible resources; had a CEO who also chaired its
board; and had a CEO who was not politically appointed.
CEO hubris is generally defined as a CEO’s exaggerated
self-confidence or pride (Hayward & Hambrick,
1997; Hiller & Hambrick, 2005; Kahneman &
Tversky, 1995). Prior research has studied the impacts
of CEO hubris or overconfidence on firm decisions
and outcomes including acquisition premiums
(Hayward & Hambrick, 1997), investment
distortion (Malmendier & Tate, 2005), and venture
failure (Hayward, Shepherd, & Griffin, 2006). The
findings generally suggest that firms with overconfident
CEOs pay higher premiums (Hayward &
Hambrick, 1997), rely on internal rather than external
financing (Malmendier & Tate, 2005), miss their
own forecasts of earnings (Hribar & Yang, 2006),
and undertake more value-destroying mergers
(Malmendier & Tate, 2006).
However, except for very few efforts (e.g., Simon
& Houghton, 2003), previous research has not paid
adequate attention to the relationship between CEO
hubris and firm risk taking. Risk taking is fundamental
to decision making and has important implications
for firm performance and survival (Bromiley,
1991; Sanders & Hambrick, 2007; Shapira,
1995). Firm risk taking has previously been examined
in terms of performance feedback (Greve,
1998,
...