TY - JOUR
T1 - Does Founder CEO Status Affect Firm Risk Taking?
AU - Tang, Yi
AU - Li, Jiatao
AU - Liu, Yu
N1 - Publisher Copyright:
© The Authors 2015.
PY - 2016/8/1
Y1 - 2016/8/1
N2 - Grounded in the strategic leadership literature and upper echelons theory, this study proposes that founder CEOs tend to take more risks than agent CEOs because of the former’s overconfidence. We further suggest that the relationship between founder CEO status and firm risk taking can be moderated by certain internal or external factors that influence just how overconfident a CEO might be. Our theoretical predictions are well supported by a large survey data set on Chinese CEOs. Specifically, the positive relationship between founder CEO status and firm risk taking weakens when the CEO is younger, when the CEO also chairs the board of directors, and when the CEO’s task environment is less uncertain, less complex, and more munificent.
AB - Grounded in the strategic leadership literature and upper echelons theory, this study proposes that founder CEOs tend to take more risks than agent CEOs because of the former’s overconfidence. We further suggest that the relationship between founder CEO status and firm risk taking can be moderated by certain internal or external factors that influence just how overconfident a CEO might be. Our theoretical predictions are well supported by a large survey data set on Chinese CEOs. Specifically, the positive relationship between founder CEO status and firm risk taking weakens when the CEO is younger, when the CEO also chairs the board of directors, and when the CEO’s task environment is less uncertain, less complex, and more munificent.
KW - Chinese firms
KW - founder CEOs
KW - overconfidence
KW - risk taking
KW - upper echelons theory
UR - http://www.scopus.com/inward/record.url?scp=84977572936&partnerID=8YFLogxK
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U2 - 10.1177/1548051815623736
DO - 10.1177/1548051815623736
M3 - Article
AN - SCOPUS:84977572936
SN - 1548-0518
VL - 23
SP - 322
EP - 334
JO - Journal of Leadership and Organizational Studies
JF - Journal of Leadership and Organizational Studies
IS - 3
ER -