Take a Leaf out of Their Book : Peer Influence and Corporate Risk-taking
Research output: Conference Papers › RGC 33 - Other conference paper › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
Original language | English |
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Publication status | Presented - 29 Jun 2024 |
Conference
Title | 2024 Greater China Area Finance Conference |
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Location | Xiamen University |
Place | China |
City | Xiamen |
Period | 29 - 30 June 2024 |
Link(s)
Permanent Link | https://scholars.cityu.edu.hk/en/publications/publication(1d886d4d-9633-41a4-a077-9becff9d1ce5).html |
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Abstract
This paper documents that corporate risk-taking is responsive to peer influence through the product-market network. Firms take more risks if they encounter greater peer firms’ risk-taking. Furthermore, we find that firms with low-talented CEOs and poor-performance are more eager to learn from their peers, that better governance firms have the greater need to mimic their peers, and that firms operating in more competitive industries and facing severer financial constraints are more prone to follow their peers. Our conclusion is robust to alternative network identification including endogenous selection of peers.
Bibliographic Note
Research Unit(s) information for this publication is provided by the author(s) concerned.
Citation Format(s)
Take a Leaf out of Their Book: Peer Influence and Corporate Risk-taking. / Jie, Elaine Yongshi; Ma, Yue; Zhou, Yinggang.
2024. 2024 Greater China Area Finance Conference, Xiamen, China.
2024. 2024 Greater China Area Finance Conference, Xiamen, China.
Research output: Conference Papers › RGC 33 - Other conference paper › peer-review