Environment Uncertainty、Managerial Power And Risk Taking

Risk taking not only can improve the operating performance of the micro enterprise,but also can promote the sustainable growth of the macro economy.In this paper,we use the approach and inhibition theory of power of social psychology and adopt the behavioral experimental research method to study the influence of managerial power on risk taking and the moderating effect of environment uncertainty on the relationship between managerial power and risk taking.The research shows that compared with the smaller managerial power,when the managerial power is larger,the executive is more likely to take a bold and positive attitude towards decision making,more willing to choose the investment projects with high risk and high return and also has a stronger willingness to take risks. After considering the influence of environment uncertainty, this study find that in the case of low degree of environment uncertainty,compared with the smaller managerial power,when the managerial power is larger,the possibility of the executive to take a bold and positive attitude will be higher and the willingness to choose the investment projects with high risk and high return will be greater.The willingness of the executive to take risks will also be stronger.However,in the case of high degree of environment uncertainty, there is no significant difference in the effect of the size of managerial power on risk taking.In addition,additional analysis also excludes other explanations for this study which made by the factors,such as the level of confidence in the subjects’decision making,the evaluation of the current financial situation of the enterprise of the subjects and the influence degree of independent variables on decision making perceived by the subjects.This paper enriches the research of risk taking related factors and supplements the research perspective of managerial power.Besides,it further proves the influence of environment uncertainty on enterprise decision making and provides a new idea and perspective for the study of corporate governance in the future.At the same time,the conclusion of this paper also provides advices for the enterprise on how to set up a better corporate governance and for the executive on how to make better judgments and decisions.