IDEAS home Printed from https://ideas.repec.org/a/taf/jriskr/v23y2020i1p95-116.html
   My bibliography  Save this article

The relationships between CEO characteristics and strategic risk-taking in family firms

Author

Listed:
  • Pierluigi Martino
  • Alessandra Rigolini
  • Giuseppe D’Onza

Abstract

We examine the influences of chief executive officer (CEO) personal characteristics on family firms’ strategic risk-taking. Building on upper echelons theory, we investigate the influences of CEO family relationships, the CEO professional education, other career experiences, tenure, and career horizon have on the risk level a company takes. By analyzing a sample of 107 Italian family firms listed on the Milan Stock Exchange, we find that company’s risk-taking significantly and negatively relates to CEO family relationship and professional education, but positively to CEO career horizon. This provides support to the argument that such CEO personal characteristics are key factors in explaining differences in risk-taking among family firms. Further, our analysis of control variables shows that family firms’ risk-taking relates positively to board size and negatively to company size. These results suggest that company and board characteristics also significantly influence the risk levels taken by a company.

Suggested Citation

  • Pierluigi Martino & Alessandra Rigolini & Giuseppe D’Onza, 2020. "The relationships between CEO characteristics and strategic risk-taking in family firms," Journal of Risk Research, Taylor & Francis Journals, vol. 23(1), pages 95-116, January.
    • Handle: RePEc:taf:jriskr:v:23:y:2020:i:1:p:95-116
    DOI: 10.1080/13669877.2018.1517380
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13669877.2018.1517380
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13669877.2018.1517380?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Meiryani Meiryani & Shi-Ming Huang & Dezie Leonarda Warganegara & Moch Doddy Ariefianto & Vaeren Teresa & Helda Oktavianie, 2023. "The Effect of Industrial Type, Environmental Performance and Leverage on Carbon Emission Disclosure: Evidence from Indonesian LQ45 Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 622-633, July.
    2. Christoffersen, Jeppe & Holzmeister, Felix & Plenborg, Thomas, 2023. "What is risk to managers?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 40(C).
    3. Anna Dodonova, 2022. "Risk Aversion, Managerial Reputation, and Debt–Equity Conflict," Games, MDPI, vol. 13(2), pages 1-10, March.
    4. Tutun Mukherjee & Som Sankar Sen, 2022. "Impact of CEO attributes on corporate reputation, financial performance, and corporate sustainable growth: evidence from India," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-50, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jriskr:v:23:y:2020:i:1:p:95-116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJRR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.