Abstract
Building on agency and prospect theory views, many researchers have analyzed the executive risk-taking behavior. They have usually put in evidence the role of the mechanisms of corporate governance. In this research, we try to point out that even managerial entrenchment does matter. We consider the non financial firms that are listed in the Tunisian Stock exchange during the 1996 - 2006 period. To reveal the managerial risk taking, we apply factor analysis so as to construct a global index. To find out the impact of managerial entrenchment on risk-taking, we consider the ownership of the manager, his experience within the firm as well as his age. The size of the firm is also worth investigating while exploring managerial risk taking. The results are somewhat robust to different specifications. They may enhance and extend the agency-based corporate governance literature on executive risk-taking. But above all, they may shed some light on the emerging markets context namely the Tunisian one
Subject
General Business, Management and Accounting
Reference47 articles.
1. Alexandre, H. et Paquerot, M., 2000, «Efficacité des structures de contrôle et enracinement des dirigeants», Finance Contrôle Stratégie, 3(2), 5-29.
2. Beasley, M.S., Clune, R. and Hermanson, D.R., 2005, «Enterprise Risk Management: An Empirical Analysis of Factors associated with the Extent of Implementation», Journal of Accounting and Public Policy, 24, 521–531.
3. Beatty, R.P. and Zajac, E.J., 1994, «Managerial Incentives, Monitoring and Risk Bearing: A Study of Executive Compensation, Ownership and Board Structure in Initial Public Offerings», Administrative Science Quarterly, 39, 313-335.
4. Benzoni, L., Collin-Dufresne, P. and Goldstein, R.S., 2006, «Portfolio Choice over the Life-Cycle when the Stock and Labor markets are Cointegrated», Journal of Finance forthcoming.
5. Brickley, J.A., Coles, J.L. and Jarrell, J., 1997, «Leadership Structure: Separating the CEO and the Chairman of the Board», Journal of Corporate Finance, 3, 189-220.
Cited by
3 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献