TY - JOUR
T1 - Corporate risk culture
AU - Pan, Yihui
AU - Siegel, Stephan
AU - Wang, Tracy Yue
PY - 2017/12/1
Y1 - 2017/12/1
N2 - We examine the formation and evolution of corporate risk culture, that is, the preferences toward risk and uncertainty shared by a firm's leaders, as well as its effect on corporate policies. We document persistent commonality in risk attitudes inside firms, which arises through the selection of leaders with similar preferences and is rooted in the founders' risk attitudes. Changes in corporate risk culture over time affect corporate investment policies, whereas cross-sectional differences in founders' risk attitudes, that is, firms' initial risk culture, contribute to differences across firms in persistent firm policies, such as research and development intensity.
AB - We examine the formation and evolution of corporate risk culture, that is, the preferences toward risk and uncertainty shared by a firm's leaders, as well as its effect on corporate policies. We document persistent commonality in risk attitudes inside firms, which arises through the selection of leaders with similar preferences and is rooted in the founders' risk attitudes. Changes in corporate risk culture over time affect corporate investment policies, whereas cross-sectional differences in founders' risk attitudes, that is, firms' initial risk culture, contribute to differences across firms in persistent firm policies, such as research and development intensity.
UR - http://www.scopus.com/inward/record.url?scp=85039987575&partnerID=8YFLogxK
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U2 - 10.1017/S0022109017000771
DO - 10.1017/S0022109017000771
M3 - Article
AN - SCOPUS:85039987575
VL - 52
SP - 2327
EP - 2367
JO - Journal of Financial and Quantitative Analysis
JF - Journal of Financial and Quantitative Analysis
SN - 0022-1090
IS - 6
ER -