Heterogeneity Of Board Tenure And Corporate Risk-Taking

Risk taking reflects the risk preference of enterprises in the process of investment and financing decision-making and is an important decision in the financial behavior of enterprises.This kind of risk choice is crucial to the development of enterprises and even the society.A high level of risk taking not only helps enterprises to obtain a higher return on investment,but also speeds up the capital accumulation of the whole society and promotes technological progress from a macro perspective.Therefore,risk taking is the driving force for sustainable development and macroeconomic growth of enterprises.The existing literature divides the influencing factors of enterprise risk taking into three aspects: external environment,enterprise and personal characteristics.With the continuous development of behavioral finance,the personal characteristics of managers are widely concerned.However,it is difficult for the manager homogeneity implied by the traditional agency theory to meet the reality.The board of directors,as the highest decision-making level of the enterprise,is the decision-making subject of the enterprise's risk activities and determines the level of the enterprise's risk bearing.Among them,the term characteristics of board members are closely related to their experience,ability and independence,which affect the effective play of the board's supervision and advisory functions,undoubtedly affect the strategic decision of the enterprise,and play a role in the level of enterprise risk taking.Therefore,the study on the relationship between the heterogeneity of board tenure and the level of corporate risk taking is helpful to deepen the discussion on the influencing factors of risk taking in the existing literature and provide references for enterprises to improve the level of risk taking and enhance their competitiveness.Taking a-share listed companies in Shanghai and shenzhen from 2007 to 2019 as samples,this paper systematically investigated the objective performance,transmission path and value effect of heterogeneity of board tenure on enterprise risk taking,as well as whether there are differences among enterprises with different property rights.The results show that :(1)the greater the heterogeneity of board tenure is,the higher the level of corporate risk taking is,and the greater the effect of board tenure heterogeneity on the level of corporate risk taking is in non-state-owned enterprises compared with state-owned enterprises.(2)in terms of influence path,high heterogeneity of board tenure leads to more aggressive investment and financing decisions of non-state-owned enterprises,which is manifested in higher proportion of debt financing and more r&d investment;(3)in terms of economic consequences,the mediating effect model is used to verify that the heterogeneity of board tenure improves the enterprise value by increasing the risk taking level of enterprises,and it is only significant in non-state-owned enterprises.From the micro level of heterogeneity of board tenure,this paper expands the literature research on the factors affecting corporate risk taking,which is of great significance for improving the board structure and recruitment mechanism of listed companies and enhancing corporate value.