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CEO social capital, business environment, and the level of corporate risk‐taking in China

Author

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  • Xin Su
  • Wenxiu Fu
  • Liping Zou
  • Ji (George) Wu

Abstract

We find a significant positive role of chief executive officer (CEO) social capital on the level of corporate risk‐taking for Chinese listed firms from 2008 to 2019. We reveal that a better business environment tends to reduce this positive relationship. In addition, we also find that corporate innovations provide moderation effects on the relationship. Further analysis of heterogeneity tests on firm characteristics suggests that CEO social capital's effect on corporate risk‐taking is significant and stronger for non‐state‐owned enterprises, firms with fewer female directors on their board, and firms with more cash holdings.

Suggested Citation

  • Xin Su & Wenxiu Fu & Liping Zou & Ji (George) Wu, 2024. "CEO social capital, business environment, and the level of corporate risk‐taking in China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(2), pages 1745-1767, June.
    • Handle: RePEc:bla:acctfi:v:64:y:2024:i:2:p:1745-1767
    DOI: 10.1111/acfi.13201
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