The Moderating Effect of CEO Gender on Relationship between CEO Tenure and Risk-taking
Keywords:
CEO gender, , CEO tenure , Risk-takingAbstract
The objects of this study are 1) to analyze the relationship between CEO tenure and firm risk-taking and 2) to examine the effect of CEO gender as a moderator on the CEO tenure and risk-taking relationship of firms listed on Thai stock exchange. The data were collected from the stock exchange of Thailand The samples were 2,395 firm-year observations by using purposive sampling method. The result of the study shows that 1) CEO tenure has significantly negative association with risk-taking. According to Agency theory, CEOs as an agent concern making utilities for themselves instead of maximizing benefits to the shareholders. 2) The result also confirms that CEO gender is a moderator. The effect of the interaction between CEO gender and CEO tenure is significantly positive to risk-taking at 0.01 level. This implied that the gender of CEO affects decision-making about investment risk. According to sub-group analysis, the relationship between CEO tenure and firm risk-taking is significantly negative at 0.01 level for male group. For female group, it shows the positive relationship between CEO tenure and firm risk-taking. But it is not significant. Thus, it can be concluded that the longer the male CEO held the position, the more dare they invested at risk.
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