Board leadership structure and firm risk-taking behaviour

In this paper the conceptual frameworks, which make different predictions about the effect of board leadership structure on firm risk-taking behaviour, are examined. From a sample of 243 Australian listed firms, it is found that leadership structure does not have any significant influence on firm ri...

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Bibliographic Details
Published inCorporate Ownership and Control Vol. 6; no. 2; pp. 52 - 60
Main Authors Wang, Yi, Wilmshurst, Trevor D.
Format Journal Article
LanguageEnglish
Published 2008
Subjects
Australia
Board of directors
Business practices
Firm theory
Risk management
Stock exchange
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Summary:In this paper the conceptual frameworks, which make different predictions about the effect of board leadership structure on firm risk-taking behaviour, are examined. From a sample of 243 Australian listed firms, it is found that leadership structure does not have any significant influence on firm risk; higher blockholder ownership or lower dividend payout is related to increased performance variance. This research suffers from some limitations; the archival study of the functional background of board chairman may not reveal the underlying relationship between the board of directors and firm risk-taking behavior. We only test the influence of leadership structure on performance variance; further research could investigate the potential impact of board composition on firm risk-taking propensity.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:1727-9232
1810-3057
DOI:10.22495/cocv6i2p5