CEO hubris and firm risk taking in China: the moderating role of managerial discretion

Jiatao Li, Yi Tang

Research output: Journal PublicationArticlepeer-review

487 Citations (Scopus)

Abstract

This study linked CEO hubris to firm risk taking and examined the moderating role of managerial discretion in this relationship. Drawing on upper echelons theory and behavioral decision theory, we developed and tested hypotheses using original survey data from 2,790 CEOs of diverse manufacturing firms in China. The positive relationship between CEO hubris and firm risk taking was found to be stronger when CEO managerial discretion was stronger: when a firm faced munificent but complex markets; had less inertia and more intangible resources; had a CEO who also chaired its board; and had a CEO who was not politically appointed.

Original languageEnglish
Pages (from-to)45-68
Number of pages24
JournalAcademy of Management Journal
Volume53
Issue number1
DOIs
Publication statusPublished - 1 Feb 2010
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting (all)
  • Strategy and Management
  • Management of Technology and Innovation

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