Testing a model of reasoned risk-taking: governance, the experience of principals and agents, and global strategy in high-technology IPO firms

Deskripsi

Research on the governance of risky ventures, like the initial public offerings (IPOs) of high-technology firms, has focused primarily on the relationship between governance mechanisms and firm performance. While such an emphasis is clearly important, it does little to shed light on potential relationships between governance and the strategies pursued by risky firms, nor does it take into account the complementary role of key stakeholders in affecting those strategies. To partially remedy this deficit agency and behavioral perspectives are integrated to develop a theory of "reasoned risk-taking," whereby the nature of risks undertaken is a consequence of the interaction of governance mechanisms and stakeholder characteristics. The theory is demonstrated by predicting when corporate governance should be associated with strategic risk-seeking beyond a firm's technical core - as seen in the degree to which it has expanded internationally..Printed Journal