1,600
Views
6
CrossRef citations to date
0
Altmetric
ACCOUNTING, CORPORATE GOVERNANCE & BUSINESS ETHICS

Do CEOs’ demographic characteristics affect firms’ risk-taking? Evidence from Jordan

, , , ORCID Icon &
Article: 2152646 | Received 25 Oct 2022, Accepted 24 Nov 2022, Published online: 14 Dec 2022

References

  • Aabo, T., & Eriksen, N. B. (2018). Corporate risk and the humpback of CEO narcissism. Review of Behavioral Finance, 10(3), 252–16. https://doi.org/10.1108/RBF-07-2017-0070
  • Alawaqleh, Q. A., Almasria, N. A., & Alsawalhah, J. M. (2021). The effect of board of directors and CEO on audit quality: Evidence from listed manufacturing firms in Jordan. The Journal of Asian Finance, Economics and Business, 8(2), 243–253. https://doi.org/10.13106/jafeb.2021.vol8.no2.0243
  • Alhmood, M. A., Shaari, H., & Al-dhamari, R. (2020). CEO characteristics and real earnings management in Jordan. International Journal of Financial Research, 11(4), 255–266. URL. https://doi.org/10.5430/ijfr.v11n4p255
  • Alqatamin, R., Aribi, Z., & Arun, T. (2017). The effect of the CEO’s characteristics on EM: Evidence from Jordan. International Journal of Accounting and Information Management, 25(3), 356–375. https://doi.org/10.1108/IJAIM-10-2016-0099
  • Anderson, R. C., Reeb, D. M., Upadhyay, A., & Zhao, W. (2011). The Economics of Director Heterogeneity. Financial Management, 40(1), 5–38. https://doi.org/10.1111/j.1755-053X.2010.01133.x
  • Attia, M., Yousfi, O., Loukil, N., & Omri, A. (2020). Do directors’ attributes influence innovation? Empirical evidence from France. International Journal of Innovation Management, 25, 1. https://doi.org/10.1142/S1363919621500109
  • Bamber, L. S., Jiang, J., & Wang, I. Y. (2010). What’s my style? The influence of top managers on voluntary corporate financial disclosure. The Accounting Review, 85(4), 1131–1162. ‏. https://doi.org/10.2308/accr.2010.85.4.1131
  • Barker, V., & Mueller, G. (2002). CEO Characteristics and Firm R&D Spending. Management Science, 48(6), 782–801. https://doi.org/10.1287/mnsc.48.6.782.187
  • Barth, M. E., Doron, I., & Sridharan, S. A. (2022). Equity book-to-market ratios above one and macroeconomic risk. https://dx.doi.org/10.2139/ssrn.3306503
  • Bertrand, M., & Schoar, A. (2003). Managing with style: The effect of managers on firm policies. The Quarterly Journal of Economics, 118(4), 1169–1208. https://doi.org/10.1162/003355303322552775
  • Chen, D., & Zheng, Y. (2014). CEO Tenure and risk-taking. Global Business and Finance Review, 19(1), 1–27. lead article. https://dx.doi.org/10.2139/ssrn.2038064
  • Damodaran, A. (2007). Strategic risk taking: A framework for risk management. Wharton School Publishing. https://books.google.jo/books?hl=ar&lr=&id=JJUkCHhuYO8C&oi=fnd&pg=PR7&dq
  • Devarajan, D., Ooi, C. A., Loo, S. Y., & Ooi, S. K. (2022). CEO Power and risk-taking: The moderating role of independent boards, CEO com pensation and institutional ownership. International Journal of Accounting, 7(43), 179–193. https://doi.org/10.55573/IJAFB.074313
  • Faccio, M., Marchica, M. T., & Mura, R. (2016). CEO gender, corporate risk-taking, and the efficiency of capital allocation. Journal of Corporate Finance, 39, 193–209. https://doi.org/10.1016/j.jcorpfin.2016.02.008
  • Farag, H., & Mallin, C. (2018). The influence of CEO demographic characteristics on corporate risk-taking: Evidence from Chinese IPOs. The European Journal of Finance, 24(16), 1528–1551. https://doi.org/10.1080/1351847X.2016.1151454
  • Ferris, S. P., Javakhadze, D., & Rajkovic, T. (2019). An international analysis of CEO social capital and corporate risk‐taking. European Financial Management, 25(1), 3–37. https://doi.org/10.1111/eufm.12156
  • Finkelstein, S., & Hambrick, D. 1996. Strategic leadership: Top executives and their effects on organizations Minneapolis St Paul West https://doi.org/10.1177/031289629702200205
  • Gala, P., & Kashmiri, S. (2022). Exploring the dark side of integrity: Impact of CEO integrity on firms’ innovativeness, risk-taking and proactiveness. European Journal of Marketing, 56(7), 2052–2102. https://doi.org/10.1108/EJM-02-2021-0095
  • Gengatharan, R., Hatthi, A., & Malki, A. (2020). Effect of firm size on risk and return: Evidences from sultanate of Oman. European Journal of Business and Management, 12(9), 62–71. https://doi.org/10.7176/EJBM/12-9-08
  • Ghazi, R. (2022). Why the world needs more women in leadership. Why the World Needs More Women in Leadership (Forbes.com). https://www.forbes.com/sites/forbescoachescouncil/2022/09/12/why-the-world-needs-more-women-in-leadership/?
  • Gujarati, D. (2003). Basic econometrics. McGraw- Hill, NewYourk. http://196.188.170.250:8080/jspui/bitstream/123456789/656/1/Basic%20Econometrics-McGraw-Hill%20%282004%29%20Damodar%20N.%20Gujarati%20%20-.pdf
  • Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. The Academy of Management Review, 9(2), 193–206. https://doi.org/10.5465/amr.1984.4277628
  • Herrmann, P., & Datta, D. K. (2006). CEO experiences: Effects on the choice of FDI entry mode. Journal of Management Studies, 43(4), 755–778. https://doi.org/10.1111/j.1467-6486.2006.00610.x
  • Hiebl, M. R. W. (2012). Risk aversion in family firms: What do we really know? The Journal of Risk Finance, 14(1), 49–70. https://doi.org/10.1108/15265941311288103
  • Hillman, A. J., Cannella, A. A., & Paetzold, R. L. (2000). The resource dependence role of corporate directors: Strategic adaptation of board composition in response to environmental change. Journal of Management Studies, 37(2), 235–256. https://doi.org/10.1111/1467-6486.00179
  • Hop, J. (2022). Listed banks VS cooperative banks: Differences in agency problems with regards to CEO-duality and risk taking analyzed from an ownership perspective. Utrecht University. https://studenttheses.uu.nl/handle/20.500.12932/42218
  • Hoskisson, R. E., Chirico, F., Zyung, J., & Gambeta, E. (2017). Managerial risk taking: A multitheoretical review and future research agenda. Journal of Management, 43(1), 137–169. https://doi.org/10.1177/0149206316671583
  • Huang, S. K. (2013). The impact of CEO characteristics on corporate sustainable development. Corporate Social Responsibility and Environmental Management, 20(4), 234–244. https://doi.org/10.1002/csr.1295
  • Hunjra, A. I., Hanif, M., Mehmood, R., & Nguyen, L. V. (2021). Diversification, corporate governance, regulation and bank risk-taking. Journal of Financial Reporting and Accounting, 19(1), 92–108. https://doi.org/10.1108/JFRA-03-2020-0071
  • Jenkins, E. J., & Seiler, R. E. (1990). The impact of executive compensation upon the level of discretionary expenditures and growth in firm value. Journal of Business Finance and Accounting, 17(4), 585–592. https://doi.org/10.1111/j.1468-5957.1990.tb01145.x
  • Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behaviour, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
  • Kanakriyah, R. (2021). The impact of board of directors’ characteristics on firm performance: A case study in Jordan. The Journal of Asian Finance, Economics and Business, 8(3), 341–350. http://dx.doi.org/10.13106/jafeb.2021.vol8.no3.0341
  • Kaur, R., & Singh, B. (2019). Do CEO characteristics explain firm performance in India? Journal of Strategy and Management, 12(3), 409–426. https://doi.org/10.1108/JSMA-02-2019-0027
  • Kitchell, S. (1997). CEO characteristics and technological innovativeness: A Canadian perspective. Canadian Journal of Administrative Sciences, 14(2), 111–125. https://doi.org/10.1111/j.1936-4490.1997.tb00123.x
  • Koellinger, P. (2008). Why are some entrepreneurs more innovative than others? Small Business Economics, 31(1), 21–37. https://doi.org/10.1007/s11187-008-9107-0
  • Laeven, L., & Levine, R. (2009). Bank governance, regulation, and risk taking. Journal of Financial Economics, 93(2), 259–275. https://doi.org/10.1016/j.jfineco.2008.09.003
  • Li, T., Munir, Q., & Abd Karim, M. R. (2017). Nonlinear relationship between CEO power and capital structure: Evidence from China’s listed SMEs. International Review of Economics and Finance, 47, 1–21. https://dx.doi.org/10.1016/j.iref.2016.09.005
  • Li, J., & Tang, Y. I. (2010). CEO hubris and firm risk taking in China: The moderating role of managerial discretion. Academy of Management Journal, 53(1), 45–68. https://doi.org/10.5465/amj.2010.48036912
  • Loukil, N., & Yousfi, O. (2022) Do CEO’s attributes increase risk-taking? Empirical evidence from France. Asia-Pacific Journal of Business Administration. ahead-of-print. https://doi.org/10.1108/APJBA-07-2021-0330.
  • Makhlouf, M. H., Al-Sufy, F. J., & Almubaideen, H. 2018. Board diversity and accounting conservatism: Evidence from Jordan. International Business Research 11: 7 130–141. https://doi.org/10.5539/ibr.v11n7p130
  • Martino, P., Rigolini, A., & D’Onza, G. (2020). The relationships between CEO characteristics and strategic risk-taking in family firms. Journal of Risk Research, 23(1), 95–116. ‏‏. https://doi.org/10.1080/13669877.2018.1517380
  • Mateos de Cabo, R., Gimeno, R., & Nieto, M. J. 2012. Gender diversity on European banks’ boards of directors. Journal of Business Ethics. Vol. 109. 2. 145–162. ‏. https://link.springer.com/article/10 .1007/s10551-011-1112-6
  • Mathew, S., Ibrahim, S., & Archbold, S. (2016). Boards attributes that increase firm risk – Evidence from the UK. Corporate Governance, 16(2), 233–258. https://doi.org/10.1108/CG-09-2015-0122
  • Muhammad, H., Migliori, S., & Mohsni, S. (2022). Corporate governance and firm risk-taking: The moderating role of board gender diversity. Meditari Accountancy Research, ahead-of-print. https://doi.org/10.1108/MEDAR-07-2020-0949
  • Nilmawati, N., Untoro, W., Hadinugroho, B., & Atmaji, A. (2021). The relationship between CEO characteristics and leverage: The role of independent commissioners. The Journal of Asian Finance, Economics and Business, 8(4), 787–796. https://doi.org/10.13106/jafeb.2021.vol8.no4.0787
  • Orens, R., & Reheul, A. M. (2013). Do CEO demographics explain cash holdings in SMEs? European Management Journal, 31(6), 549–563. https://doi.org/10.1016/j.emj.2013.01.003
  • Pfeffer, J., & Salancik, G. R. (1978). The external control of organizations: A resource dependence perspective. Harper & Row. https://www.gsb.stanford.edu/faculty-research/books/external-control-organizations-resource-dependence-perspective
  • Qawasmeh, S., & Azzam, M. (2020). CEO characteristics and earnings management. Accounting, 6(7), 1403–1410. https://doi.org/10.5267/j.ac.2020.8.009
  • Ramón-Llorens, M. C., García-Meca, E., & Duréndez, A. (2017). Influence of CEO characteristics in family firms’ internationalization. International Business Review, 26(4), 786–799. https://doi.org/10.1016/j.ibusrev.2017.01.007
  • Saeed, A., & Ziaulhaq, H. M. (2019). The impact of CEO characteristics on the internationalization of SMEs: Evidence from the UK. Canadian Journal of Administrative Sciences/Revue Canadienne Des Sciences de l’Administration, 36(3), 322–335. https://doi.org/10.1002/cjas.1497
  • Sanders, S. G., & Hambrick, D. C. (2007). Swinging for the fences: The effects of CEO stock options on company risk-taking and performance. Academy of Management Journal, 50(5), 1055–1078. https://doi.org/10.5465/amj.2007.27156438
  • Sayari, N., & Marcum, B. (2018). Reducing risk in the emerging markets: Does enhancing corporate governance work? BRQ Business Research Quarterly, 21(2), 124–139. https://doi.org/10.1016/j.brq.2018.01.002
  • Terjesen, S., Sealy, R., & Singh, V. (2009). Women directors on corporate boards: A review and research agenda. Corporate Governance: An International Review, 17(3), 320–337. https://doi.org/10.1111/j.1467-8683.2009.00742.x
  • Tran, N., & Pham, B. J. M. S. L. (2020). The influence of CEO characteristics on corporate environmental performance of SMEs: Evidence from Vietnamese SMEs. Management Science Letters, 10(8), 1671–1682. http://growingscience.com/beta/msl/3679-the-influence-of-ceo-characteristics-on-corporate-environmental-performance-of-smes-evidence-from-vietnamese-smes.html
  • Vo, L., Nguyen, H., & Le, H. (2021). Do female CEOs make a difference in firm operations? Evidence from Vietnam. Accounting & Finance, 61, 1489–1516. https://doi.org/10.1111/acfi.12634
  • Yeoh, S. B., & Hooy, C. W. (2020). CEO age and risk-taking of family business in Malaysia: The inverse S-curve relationship. Asia Pacific Journal of Management, 1–21. https://doi.org/10.1007/s10490-020-09725-x
  • Yousfi, O., Loukil, N., & Beji, R. (2022) Powerful CEOs and CSR performance: Empirical evidence from France. Management International. Forthcoming. https://doi.org/10.1108/APJBA-07-2021-0330.
  • You, Y., Srinivasan, S., Pauwels, K., & Joshi, A. (2020). How CEO/CMO characteristics affect innovation and stock returns: Findings and future directions. Journal of the Academy of Marketing Science, 48(6), 229–1253. https://doi.org/10.1007/s11747-020-00732-4
  • Yusuf, I., Abubakar, S., Aliyu, I. A., & Aneitie, C. D. (2022). Effect of CEO pay and CEO power on risk-taking of listed deposit money banks in Nigeria. Gusau Journal of Accounting and Finance, 3(1), 21. https://journals.gujaf.com.ng/index.php/gujaf/article/view/110
  • Zahra, S. A. (2005). Entrepreneurial risk taking in family firms. Family Business Review, 18(1), 23–40. https://doi.org/10.1111/j.1741-6248.2005.00028
  • Zhang, H. (2009). Effect of derivative accounting rules on corporate risk-management behavior. Journal of Accounting and Economics, 47(3), 244–264. https://doi.org/10.1016/j.jacceco.2008.11.007
  • Zhang, Y., & Rajagopalan, N. (2010). Once an outsider, always an outsider? CEO origin, strategic change, and firm performance. Strategic Management Journal, 31(3), 334–346. https://doi.org/10.1002/smj.812