Corporate strategy, political contributions and corporate risk-taking
نویسندگان
چکیده
Purpose Despite the importance and prevalence of corporate political activities in modern organizations, there remains limited insight on potential relationship between contributions companies’ risk-taking activities. This study aims to examine monetary firms context unstable economic environments. Design/methodology/approach The authors use a two-step system GMM estimation investigate subject using cross-country sample 307 from 22 countries covered over 2002–2017. In line with previous studies, control for various governance mechanisms, firm-level factors country-level characteristics. Findings findings demonstrate that make exhibit lower levels risk as measured by different proxies risks, namely, systematic, idiosyncratic total risk. Practical implications results suggest can be useful mechanism mitigate exposure. Also, measures other robustness fosters better understanding connectedness more contextualized dynamic manner. Originality/value seeks contribute debate surrounding strategy, actual an explicit measure connection. furthers scholarly dynamics terms its impact risk-taking. Furthermore, explore this topic insights nonmarket strategy literature studies contributions.
منابع مشابه
Impact of Financial Characteristics on Future Corporate Risk-Taking Behavior
Organizational risk is often defined as a change in the flow of profit, or as a sys-tematic or non-systematic changes in the stock return flow. The risk taking of management is conceptualized as the actual investment decisions that are indictors due to uncertainty results. The purpose of this study is to investigate the effect of financial characteristics on future corporate risk taking behavio...
متن کاملGlobalization of Corporate Risk Taking
We explore how the interconnected nature of global finance affects corporate risk taking. We show that a common global factor known to be associated with fluctuations in cross-border banking is also strongly associated with common comovements in corporate risk-taking across a diverse universe of international firms. Our study contributes to the international business literature as the first com...
متن کاملCreditor rights and corporate risk-taking
We propose that stronger creditor rights in bankruptcy affect corporate investments by reducing corporate risk-taking. In cross-country analysis, we find that stronger creditor rights induce greater propensity of firms to engage in diversifying acquisitions and of firms with low-recovery assets to acquire targets with high-recovery assets. These relations are strongest in countries where manage...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Corporate Governance
سال: 2023
ISSN: ['1758-6054', '1472-0701']
DOI: https://doi.org/10.1108/cg-07-2022-0310