Research On The Influence Of External Governance On Enterprise Risk-taking

Seeking all profitable investment opportunities and taking corresponding risks will help micro-enterprises accelerate capital accumulation and promote technological innovation,and become the driving force of macro-economic growth in the context of economic transformation.As an important part of financial decision-making,risk-taking reflects the selection of risky projects by enterprises in the process of investment decision-making.A higher level of risk-taking usually means that enterprises will give up fewer high-risk investment projects with positive expected NPV.However,the real economy is not the ideal property of "complete market",and there are agency problems and resource constraints,which may make enterprises abandon those projects with high risk but positive NPV in investment decisions.Therefore,an in-depth study of the influencing factors and economic consequences of risk-taking will help enterprises identify effective ways to improve the efficiency of capital allocation,and may also provide policy reference for regulators to formulate policies to promote enterprise innovation.Existing research is generally based on the principal-agent analysis framework,and studies how to alleviate managers’ risk aversion tendency and improve enterprises’ risk taking level from the perspectives of internal corporate governance,such as ownership structure,board structure and management incentives.However,considering that the governance of enterprises risk-taking is a complex and comprehensive behavior.As an informal institutional arrangement,external governance mechanism has the effect of resource allocation and can help enterprises to obtain more resources more conveniently at lower cost.In addition,as for the agency problem,some studies have pointed out that compared with the internal governance mechanism,the external governance mechanism of enterprises has more direct and strong governance effect.Therefore,it is of great value to study the influencing factors of risk taking from the perspective of external governance to alleviate agency problems and resource constraints.In the external governance mechanism of a company,firstly,based on the perspective of product market governance,supply chain relations play a strong role in external governance through cooperative competition mechanism.On the one hand,through the purchase and sale transaction trust mechanism,the soft restriction of commercial credit term is enhanced,and the financing cost of enterprises is reduced,so as to realize the "supply commercial credit"effect of supply chain relationship.On the other hand,the information exchange and sharing platform between supply chain enterprises can alleviate the degree of information asymmetry,improve the pertinence of R&D project investment between enterprises,and realize the effect of "relieving information asymmetry" in supply chain relations.At the same time,the"relational specific assets" between the upstream and downstream enterprises of the supply chain further consolidate the above resource supply path.Secondly,based on the perspective of government governance,the government reduces tax by reducing enterprise tax burden,saving operating costs and other means to relieve the resource constraints and potential financial difficulties that may be caused by risky investment projects.On the other hand,the government will enjoy preferential tax policies as a positive signal of recognition to other stakeholders,in order to win the resources to engage in risky investment projects.Thirdly,based on the perspective of capital market governance,debt contracts limit the use of funds in the form of legal contracts,supervise enterprises’ investment decisions and other financial behaviors,implement supervision,control and incentive constraints on managers,and to a certain extent curb managers’ encroachment on interests and seeking personal gains and other agency problems.Finally,based on the social intermediary governance perspectives,analysts pay attention to pass through the prediction information of listed companies,to expose the governance problems,help to break the managers "quiet life",reduce the managers "empire building" the possibility of benefit expropriation behavior prompted managers when faced with a risky investment project is more focus on enterprise long-term value realization,so as to alleviate the problem of agency to enterprise risk for adverse effects.Therefore,it is of great significance to study the impact of external governance on enterprise risk taking from the perspectives of supply chain relationship,government tax reduction,debt contract and analysts’ concerns.This study takes these four aspects of external governance as the entry point,respectively establishes the analysis framework to alleviate agency costs and realize resource acquisition,and investigates their impact on enterprise risk taking,impact path and economic consequences.The main research conclusions are as follows:(1)Supply chain relationship is helpful to enhance enterprise risk taking.It is further found that,on the one hand,financing constraints play a part of the mediating effect in the relationship between them,thus proving to a certain extent the influence path of "supply chain relationship--resource acquisition--enterprise risk taking".On the other hand,industry monopoly,high-tech industry attributes and property rights play a regulating role in the relationship between supply chain and enterprise risk taking.The stronger the industry monopoly is,the weaker the positive relationship between supply chain relationship and enterprise risk taking is.In the sample of non-high-tech industry,the positive relationship between supply chain relationship and enterprise risk taking is weaker.Compared with non-state-owned enterprises,the positive relationship between supply chain relationship and state-owned enterprises’ risk taking is weaker.(2)The effective tax rate was used to measure the degree of government tax reduction,and it was found that the government tax reduction significantly increased the risk taking of enterprises.It is further found that,on the one hand,financing constraints play a partial intermediary effect in the relationship between the two,which also proves the influence path of "government tax reduction--resource acquisition--enterprise risk bearing".On the other hand,industrial policy support,property right nature,R&D intensity and local government innovation incentive motivation play a moderating role in the relationship between government tax reduction and enterprise risk bearing.Compared with the samples not supported by industrial policy,in the samples supported by industrial policy,the positive relationship between government tax reduction and enterprise risk bearing is more significant.Compared with state-owned enterprises,the government’s tax reduction has a more significant effect on the risk taking of non-state-owned enterprises.The stronger the R&D intensity is,the stronger the positive relationship between government tax reduction and enterprise risk taking is.The stronger the incentive motivation of local government,the stronger the positive relationship between tax reduction and enterprise risk taking.(3)Debt contracts help promote risk-taking.It is further found that,on the one hand,agency cost plays a part of the mediating effect in the relationship between debt contract and enterprise risk bearing,which proves to some extent the influence path of "debt contractagency cost--enterprise risk bearing".On the other hand,heterogeneity of contract duration,managerial defense and managerial shareholding play a moderating role in the impact of debt contracts on corporate risk taking.At present,under the system environment of our country,the short-term debt contract also increases the risk taking of enterprises,and its financial crisis restraint mechanism has not been given full play.Compared with the sample group with high managerial defense,when the managerial defense level is low,the debt contract plays a more significant role in the increase of enterprise risk assumption.The higher the level of management shareholding,the stronger the positive relationship between debt contract and enterprise risk taking.(4)The analyst’s concern of lagging one period is significantly positively correlated with enterprise risk taking.It is further found that,on the one hand,agency cost plays a part of the mediating effect in the relationship between the two,that is,"debt contract--agency costenterprise risk taking".On the other hand,enterprise information transparency,industry concentration and management power play a moderating role in the relationship between them.Compared with the samples with low information transparency,in the research samples with high information transparency,analysts’ concern has a more significant effect on the increase of enterprise risk taking.Compared with the samples with high industry concentration,in the research samples with low industry concentration,analysts’ attention has a more significant effect on the increase of enterprise risk taking.Management power has a significant negative impact on the relationship between analyst concern and corporate risk taking.(5)This paper further examines the economic consequences of enterprise risk-taking from the perspective of micro-enterprise performance and total factor productivity.Further test results show that the promotion effect of risk taking on enterprise performance and total factor productivity is not affected by heterogeneous factors such as enterprise size,property right nature and industry attribute.The possible contributions of this paper are mainly reflected in the following three aspects:First of all,from the content of research,it enriches and expands the relevant studies on the factors influencing enterprise risk-taking and its economic consequences.Secondly,from the perspective of research,this paper constructs a theoretical analysis framework of risk taking based on resource acquisition and agency cost,which expands and deepens the theoretical framework of enterprise risk taking.Thirdly,from the perspective of empirical evidence,it provides a new explanation for the promotion of economic growth under the background of China’s emerging plus transition economy.