Inventor Top Executives And Corporate Risk-taking

Corporate risk-taking reflects the tendency of enterprises to pay a certain price for high profits.The environment of market economy is full of uncertainty,it is a prerequisite for the continuous development of enterprises that properly bear risks and reasonably select high-risk and high-return investment projects.At the same time,top executives is the ultimate decision-maker of corporate business strategy and major decisions,many literatures have investigated the influence of certain background characteristics of senior executives on corporate risk-taking.However,at present,there is no relevant literature to discuss the relationship between the inventor experience of top executives and corporate risk-taking.Therefore,this paper research the influence of inventor top executives on enterprise operation and management from the perspective of corporate risk-taking.This paper takes Chinese a-share listed manufacturing enterprises from 2002 to 2015 as the research sample,and by using the inventor executives data of listed companies which matched with the IncoPat scientific and technological innovation patent database,conducts an empirical study on the relationship between inventor executives and corporate risk-taking.The findings of this paper are as follows:(1)The inventor executive can significantly reduce the risk taking level of the firm,which means that the inventor executive has a significant inhibitory effect on the risk taking activities of the firm;(2)Both executive compensation and executive stock ownership will weaken the inhibitory effect of inventor executives on corporate risk-taking,which indicates that executive incentive,as an important internal firm governance mechanism,will interact with the inventor experience of executives,thus promoting corporate risk-taking.After various robustness tests,such as substitution measurement of independent variables and dependent variables,estimation of propensity score matching,and regression of selected instrumental variables etal,the above conclusions are still valid.Further,this paper finds that Female CEO can enhance the inhibitory effect of inventor executives on corporate risk-taking,and Founder executives of private enterprises will weaken the inhibitory effect of inventor executives on corporate risk-taking.This paper uses the data of Chinese manufacturing enterprise internal inventor,systematically tests the inventor executives influence on corporate risk-taking at the first time,has an important theoretical contribution:enriched the literature of executives personal background affects corporate risk-taking,contributed to the literature that the risk preference of conflict between shareholders and senior executives of principal-agent problems,this article research results can provide the reference with psychology and behavioral finance.The research also has important policy implications.lt has certain guiding significance to how to optimize the internal structure of the senior management team,how to allocate the members of the senior management team reasonably according to the background characteristics,how to design the schemes of senior management incentive and how to improve the corporate internal governance.