The Impact of Managerial Ability and Overconfidence on Firm Risk-taking: The Moderating Role of Corporate Governance Efficiency

المقالات الجاهزة للنشر

نوع المستند : المقالة الأصلية

المؤلفون

1 كلية التجارة جامعة المنوفية

2 مدرس كلية التجارة جامعة المنوفية

3 مدرس كلية التجارة جامعة السويس

المستخلص

This study aims to investigate the impact of managerial ability and overconfidence on firm risk-taking in Egypt and to examine the moderate effect of corporate governance efficiency on such a relationship. The sample includes 45 non-financial EGX-100 index firms from 2018 to 2022 with 225 balanced observations. Four accounting-based proxies are used to measure firm risk-taking. Managerial ability is estimated based on the DEA-Tobit approach developed by Demerjian et al. (2012). Managerial overconfidence was evaluated using the Schrand & Zechman (2012) indicator. Corporate governance efficiency is calculated using the DEA platform, which uses inputs and outputs of corporate governance. Data were then analyzed using panel regression models with fixed and random effects.

Results showed a positive relationship between managerial ability and corporate risk-taking. Increasing managerial ability increases firm risk-taking, as high-ability managers are more adept at capitalizing on opportunities. Results also indicated that managerial overconfidence negatively influences firm risk-taking indicators. Further, findings showed that corporate governance efficiency moderately influences the impact of managerial ability and overconfidence in firm risk-taking. Moreover, firm size positively affects firm risk-taking proxies, supporting the political costs hypothesis in the positive accounting theory, as big-size firms are more likely to take risks to reduce political costs.

الكلمات الرئيسية

الموضوعات الرئيسية

المجلة العلمية للبحوث التجارية (جامعة المنوفية)

المقالات الجاهزة للنشر، المقال المقبول
استمارة إلكترونية متاحة 29 January 2025

ملفات

شارك

إرسال الاستشهاد إلى

الإحصائيات