{"title":"Letting go or pushing forward: Director death and firm risk-taking","authors":"David H. Weng , Kwang-Ho Kim","doi":"10.1016/j.lrp.2023.102322","DOIUrl":null,"url":null,"abstract":"<div><p>We draw on behavioral strategy, terror management, and post traumatic growth theories to examine how a sudden director death may affect firm risk-taking. Two opposing predictions are developed. One is that a director death can trigger anxiety, prompting a CEO to become less committed to his or her job and decreasing a firm's risk-taking tendency. Alternatively, the passing of a director may evoke death reflection, inducing a CEO to pursue higher-order goals and initiate more projects with substantial uncertainties. Results based on a sample of publicly traded firms in the United States suggest that while a director death may diminish firm long-term investment, this event could fuel strategic nonconformity. Our findings suggest that the impact of director death on firm strategies could be more nuanced than the existing literature has suggested.</p></div>","PeriodicalId":18141,"journal":{"name":"Long Range Planning","volume":"56 3","pages":"Article 102322"},"PeriodicalIF":7.4000,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Long Range Planning","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0024630123000298","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 1
Abstract
We draw on behavioral strategy, terror management, and post traumatic growth theories to examine how a sudden director death may affect firm risk-taking. Two opposing predictions are developed. One is that a director death can trigger anxiety, prompting a CEO to become less committed to his or her job and decreasing a firm's risk-taking tendency. Alternatively, the passing of a director may evoke death reflection, inducing a CEO to pursue higher-order goals and initiate more projects with substantial uncertainties. Results based on a sample of publicly traded firms in the United States suggest that while a director death may diminish firm long-term investment, this event could fuel strategic nonconformity. Our findings suggest that the impact of director death on firm strategies could be more nuanced than the existing literature has suggested.
期刊介绍：
Long Range Planning (LRP) is an internationally renowned journal specializing in the field of strategic management. Since its establishment in 1968, the journal has consistently published original research, garnering a strong reputation among academics. LRP actively encourages the submission of articles that involve empirical research and theoretical perspectives, including studies that provide critical assessments and analysis of the current state of knowledge in crucial strategic areas. The primary user base of LRP primarily comprises individuals from academic backgrounds, with the journal playing a dual role within this community. Firstly, it serves as a platform for the dissemination of research findings among academic researchers. Secondly, it serves as a channel for the transmission of ideas that can be effectively utilized in educational settings. The articles published in LRP cater to a diverse audience, including practicing managers and students in professional programs. While some articles may focus on practical applications, others may primarily target academic researchers. LRP adopts an inclusive approach to empirical research, accepting studies that draw on various methodologies such as primary survey data, archival data, case studies, and recognized approaches to data collection.
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