Effect of decision makers’ education level on their corporate risk taking
- Keywords:
- corporate decision maker, education level, corporate risk taking, risk aversion, corporate governance, educational choices
- Abstract
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We examined whether or not the education level of corporate decision makers helps explain their level of corporate risk taking. Using a sample population of listed companies in China, we documented a significant negative correlation between decision makers’ education level and their level of corporate risk taking. Corporations run by more highly educated decision makers were found to have lower leverage and less volatile earnings. These results have important implications for corporate governance and educational choices.
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- Published
- 2013-07-04
- Issue
- Vol. 41 No. 7 (2013)
- Section
- Articles
- License
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