CEOs' general managerial skills and corporate risk taking subject to the moderator of CEO tenure |
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| Authors: | Tiecheng Leng Luyao Pan |
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| Institution: | 1. School of Management, Harbin Institute of Technology, Harbin, China;2. International Business College, South China Normal University, Foshan, China |
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| Abstract: | In this study, we examine the relation between chief executive officers' (CEOs') general managerial skills and firms' risk-taking behaviour. We find that generalist CEOs are associated with significantly higher firm risk, with the association decreasing significantly with CEO tenure. We propose the following managerial skills transformation explanation: the longer a CEO stays with a firm, the less general and more firm specific the CEO's skills and knowledge become; therefore, any effect of the CEO's general managerial skills only appears in the early years of tenure. |
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| Keywords: | CEO tenure CEOs' general managerial skills firm risk |
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