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.
| Original language | English |
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| Publication status | Presented - 18 Oct 2024 |
| Event | 2024 Financial Management Association (FMA) Annual Meeting - Gaylord Texan Resort and Convention Center, Grapevine, United States Duration: 16 Oct 2024 → 19 Oct 2024 https://www.fmaconferences.org/Texas/TexasProgram.htm |
Conference
| Conference | 2024 Financial Management Association (FMA) Annual Meeting |
|---|---|
| Country/Territory | United States |
| City | Grapevine |
| Period | 16/10/24 → 19/10/24 |
| Internet address |
Research Keywords
- Corporate risk-taking
- Peer effects
- Learning