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This study aims to investigate the impact of funding liquidity on bank risk-taking, in the context of developing countries. While high liquidity (low liquidity risk) as measured by ratio of total deposits to total assets may improve bank stability, other strand of literature shows that low liquidity risk may increase bank risk-taking (as measured by Z-score) and lowering bank stability. This study also aims to investigate the moderating influence of the COVID-19 crisis and bank size on the relationship between funding liquidity and bank risk-taking.

The authors collect annual bank-level data from 86 commercial banks in Indonesia from 2014 to 2021, comprising 686 bank-year observations, on return on assets (ROA), equity-to-assets ratio, ROA standard deviation (to calculate Z-score, a proxy for bank risk-taking), ratio of total deposits to total assets (as a proxy for liquidity risk), bank size, bank equity, ratio of operating expenses to income, asset growth, ratio of cash to total assets and COVID-19 period. The authors collect data on gross domestic product growth and inflation. The authors perform system generalized method of moments to investigate the effect of liquidity risk on bank risk-taking, incorporating control variables.

The authors find negative impacts of funding liquidity on the Z-score. Lower liquidity risk tends to increase moral hazard and bank risk-taking. The authors also find that COVID-19 period increases the negative impact of liquidity on bank risk-taking. Thus, banks engage in higher bank risk-taking in COVID-19 period than in non-COVID-19 period. Bank size lower the negative impact of liquidity on bank risk-taking. Thus, larger banks tend to engage in less bank risk-taking than small banks when they face high liquidity (lower liquidity risk).

The results support the notion that liquidity risk has a negative impact on bank risk-taking, thus confirming a potential seed for bank instability. The COVID-19 period, which is characterized by liquidity abundance, tends to increase bank risk-taking when the banks face low liquidity risks. Size tends to lower bank risk-taking in the context of liquidity risk. Small sample size becomes the limitation of this study.

Bank regulatory oversight is imperative all times. Even in a seemingly low-risk situation (high liquidity funding), bank stability may be threatened. The COVID-19 period, which is characterized by liquidity abundance, tends to increase bank risk-taking in the context of liquidity risk. Regulators should monitor small banks more closely because small banks tend to exhibit higher risk-taking in the context of liquidity risk.

The authors investigate the impact of liquidity risk on bank risk-taking, taking COVID-19 period and size as moderating variables. COVID-19 period is characterized by abundant liquidity. However, banks tend to restrict their activities because the risks increase during crisis period.

The impact of banking deregulation on firms and economic growth is heavily researched, but not the effects on banks’ risk-taking. This study aims to investigate the impact of China’s 2009 banking deregulation on bank risk-taking, particularly from a balance sheet capacity perspective.

Using a difference-in-differences approach, this study examines how deregulation affects bank risk-taking. A three-stage regression strategy is employed to conduct mechanism analysis.

The results reveal that deregulated banks exhibit higher levels of risk-taking. Mechanism analysis confirms the bank balance sheet capacity channel: deregulation helps strengthen the net interest margin of deregulated banks, which enhances their balance sheet capacity and subsequently increases their risk appetite. In addition, deregulation improves firms’ access to long-term credit in regions with limited credit availability, especially for smaller firms, thereby expanding the financial sector’s service outreach.

While banking deregulation enhances credit availability for firms and supports the real economy, it also raises banks’ risk-taking, posing challenges to financial stability. Our study highlights the trade-off between supporting the real economy and maintaining financial stability under banking deregulation.

This study fills a gap in research on the effects of banking deregulation on bank risk-taking, highlighting the critical role of balance sheet capacity in this process.

The paper aims to analyse the effects of interplay between entrepreneurial risk-taking behaviour and each of the three components of intellectual capital (IC) on the degree of novelty of new products.

This article studies one of the most recognized dimensions of entrepreneurial orientation (EO) along with knowledge-based assets owned by high-tech firms. In this way, entrepreneurial risk-taking is analysed considering the companies’ intellectual capital endowment, as a contingent variable, to examine the achievement of a higher novelty in developing new products from firms’ EO. The empirical study was carried out on a sample of 155 Spanish knowledge-intensive firms and based on survey data gathered from two different respondents. Hierarchical regression analysis was used.

Findings reveal heterogeneous effects of IC components on the relationship between entrepreneurial risk-taking and innovation novelty. While innovative culture (organizational capital) has a positive interaction with risk-taking in the influence on the degree of novelty of new products, relationships with customers (social capital) have a negative one. And, however, CEO industry experience (human capital) doesn’t have any contingent effect.

This study contributes to shed light on the few empirical studies that analyse internal contingent elements in the relationship between entrepreneurial risk-taking behaviour and the novelty of product innovation in high-tech firms. Concretely, specific manifestations of IC components are examined jointly with entrepreneurial risk-taking.

This paper aims to analyse the influence of contextual factors, such as educational, relational and structural support, on psychological dimensions of entrepreneurship – self-confidence and risk-taking propensity – , and their impact on Entrepreneurial Intention (EI). Further, a gender comparison is conducted on an international sample and analyses the moderating effect of family antecedents (an entrepreneurial parent) on the relationship between relational support and self-confidence and risk-taking propensity.

We test the research hypotheses using a validated questionnaire in an international context through a survey submitted to 406 professionals from Spain, China and Latin-American countries, who had received entrepreneurial education and completed their studies at least two years beforehand.

The results show significant gender differences in self-confidence and risk-taking propensity, particularly when the antecedents are educational and structural support to start a business, and we also find differences when we consider an entrepreneurial family member (father, mother) as a moderator in the relationship between relational support and self-confidence, and risk-taking propensity.

The findings shed new light on the overall picture regarding factors contributing to EI and provide valuable implications for the design of entrepreneurship education measures and policies to promote entrepreneurship in a global context.

As a novelty, this paper considers an international sample of professionals, including personal and psychological aspects as potential determinants of EI (in addition to traditional contextual factors), and also an analysis of the effects of entrepreneurial family members on the relational aspects of entrepreneurship that can affect psychological aspects of potential entrepreneurs. It also includes a gender comparison for the hypothesized model.

This paper aims to investigate the impact of capital buffer on risk-taking in the Vietnam banking sector as well as examine the moderating role of capital regulation based on Basel II standards and shadow banking on this correlation.

The capital buffer is measured by the bank’s capital adequacy ratio minus the regulatory capital adequacy ratio, whereas risk-taking is the inverse value of the Zscore indicator. To test the hypotheses, the two-step system generalized method of moments estimation and a data set for the period 2010–2022 were used.

This study reveals the U-shaped nonlinear impact of capital buffer on bank risk-taking, which means that maintaining high capital buffer forces Vietnamese banks to reduce risky activities, but when the capital buffer is thick enough to resist unexpected shocks, an additional level of capital buffer may lead to excessive risky behaviors. The regression outcomes also explore the moderating role of capital regulation based on Basel II standards and shadow banking. To be specific, applying capital regulation following Basel II has caused banks to behave more cautiously and enhance the negative impact of capital buffer on bank risk-taking, whereas engaging in shadow banking activities has caused them to increase risk tolerance and diminish the negative impact of capital buffer on risk-taking.

This study bridges the gap in the literature regarding the impact of capital buffer on bank risk-taking in a typical emerging market. Especially, the article explores evidence that capital regulation and shadow banking play as moderators between two main interest variables.

Based on upper echelons theory, this study aims to explore the impact of senior management’s academic experience on corporate risk-taking and analyze the pathways and potential moderating effects of this relationship.

This study uses panel data of Chinese A-share listed companies in the Shenzhen Stock Exchange and Shanghai Stock Exchange from 2008 to 2020. An ordinary least squares model is used to test the hypothesis.

The results indicate that senior management’s academic experience suppresses corporate risk-taking, with investment level and cash reserves being two important channels. The moderation effect test shows that the inhibitory effect becomes more pronounced when senior managers with academic backgrounds occupy chief executive officer or chief financial officer roles. Conversely, when academic executives possess overseas/financial backgrounds or increase their compensation incentives, the strength of this disincentive effect diminishes. Moreover, our extended research finds that this inhibitory effect is more pronounced in state-owned companies and those within a strong Confucian cultural environment. Additionally, senior management’s academic experience positively correlates with both current and future market returns and company value.

This study contributes to the development of top management team building and corporate governance practices. Additionally, it furnishes investors with valuable insights into assessing the risk level of companies through the characteristics of their top management teams, thereby facilitating informed investment decision-making and improving capital market resource allocation efficiency.

The purpose of this study is to examine the nonlinear relationship between executive stock options and strategic risk taking and to investigate the moderating effect of CEO characteristics (CEO age and tenure). This study aims to analyze whether the impact of executive stock options on strategic risk-taking is moderated by CEO compensation and characteristics.

This study is based on a sample of 90 French firms for the period extending from 2008 to 2021. To deal with the nonlinear relationship, the author adopts a dynamic threshold model.

The results reveal that the impact of CEO stock options on firm strategic risk-taking is nonlinear and moderated by CEO age and tenure. Using research and development (R&D) as a measure of risk taking, the author show a positive relationship between executive stock option and R&D below the threshold value of stock option, CEO age and tenure and it becomes negative above.

Stock options, CEO age and tenure shows that CEO characteristics and compensation structure are major determinants in defining the direction of the nonlinear relationship between CEO stock options and firm strategic risk-taking.

The author extends through this paper the existing research on executive stock option, strategic risk-taking and CEO characteristics using a nonlinear dynamic estimator that caters to the problems of endogeneity. Insights from the findings provide boards and regulators with a better understanding of structuring CEO compensation.

The purpose of this study is to empirically examine the indirect effect of big data analytics capability (BDAC) on performance through innovativeness and risk-taking among small and medium-sized enterprises (SMEs) by considering the moderating role of absorptive capacity (ACAP).

This study utilized a quantitative method through a survey questionnaire. The hypotheses were tested with a sample size of 202 surveys completed by SME owners. Partial least squares structural equation modeling (PLS-SEM) was administered to analyze data via the SmartPLS 4.0 software.

The analysis revealed that BDAC had an indirect effect on performance through innovativeness and risk-taking. ACAP strengthened the relationship between risk-taking and performance and also enhanced the link between BDAC and performance. Interestingly, ACAP weakened the connection between innovativeness and performance.

From a practical standpoint, our study offers valuable insights for entrepreneurs in the process of implementing BDAC. The mediating roles of innovativeness and risk-taking underscore their potential as drivers of SME performance. Also, it is crucial for managers to leverage lower-order capabilities (BDAC) to build higher-order organizational capabilities (innovativeness and risk-taking) and improve performance. Finally, managers are advised to utilize ACAP to identify external opportunities that contribute to performance.

The current study leverages the resource-based view (RBV) to provide new insights into the significance of innovativeness and risk-taking as key drivers to harness the benefits of BDAC for improving the performance of SMEs. Moreover, this study presents evidence of the moderating role of ACAP in the above relationships.

Drawing on organizational identity theory, we develop a model linking family ownership and expectations, entrepreneurial risk taking, and image in family firms to explain family firm growth. Testing our model on a sample of 163 Swiss family firms, we suggest that entrepreneurial risk taking and image can both lead to growth in family firms. We further find that family expectations have an influence on both entrepreneurial risk taking and family firm image. This finding suggests that family firms may benefit from two growth paths – forward looking risk taking and the image of the family firm that builds on the past, and that these paths are nurtured by family expectations.

The way in which managers differ when confronted with risky options or when evaluating different alternatives constitutes a fundamental part of organizational risk management. This study aims to investigate how managerial risk-taking attitudes (i.e. ethical and financial risk-taking as a trade-off between benefit and riskiness) change over time and based on gender.

The authors conducted a cross-sectional study on a sample of Italian executives and measured their perceptions of risk-taking, risk perception and risk-benefit, all referring to the company they worked for in the ethical and financial domain. The study also collected demographic data to gather information on age and gender. The authors analyzed data collected using multilevel analysis.

The results show that perceived benefits are the main drivers of risk-taking attitudes in both domains. Age and gender are not significant direct predictors of risk, but interactions with domains reveal insightful patterns.

Overall, this study highlights the need to assess the whole pattern of relationships emerging from the range of situational variables characterizing a specific population. Concerning the organizational context, it means addressing the role of organizational variables in influencing risk-taking so as to determine the extent to which organizational policies are indeed effective in fostering efficient organizational risk management.