Impact of corporate insider, blockholder, and institutional equity ownership on firm risk taking

• 成果类型: Article
• 署名作者: Wright, P; Ferris, SP; Sarin, A; Awasthi, V
• 署名单位: University of Missouri System; University of Missouri Columbia; Santa Clara University
• 刊物名称: ACADEMY OF MANAGEMENT JOURNAL
• ISSN/ISSBN: 0001-4273
• DOI: 10.5465/256787
• 发表日期: 1996
• 页码: 441-463
• 关键词: free cash flow; Competitive advantage; MODERATOR VARIABLES; ANALYSTS FORECASTS; empirical-analysis; stock returns; AGENCY COSTS; time-series; performance; earnings

摘要

The nature of a firm's risk-taking behavior can significantly affect corporate performance, In an agency context, we examined the influence of equity ownership structure upon corporate risk taking. Results support our premise that the wealth portfolios of corporate insiders may influence firm risk taking, They also support our analysis of entrenchment theory and our presumption that financial and nonfinancial benefits or costs may, at high levels of stock ownership, induce executive decisions inconsistent with growth-oriented risk taking. Institutional owners exerted a significant, positive influence on risk taking, but the role of blockholders was negligible. Finally, ownership structure affected corporate risk taking in the presence of growth opportunities, represented by Tobin's q.