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| Humble Board, Strategic Radicalization and Risk Taking: The Moderating Effect of the Informal Hierarchy |
| ZHANG Jintao，LEI Xinghui，SU Taoyong |
| Tongji University， Shanghai， China |
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Abstract Based on the perspective of self-transcendence and avoiding overconfidence of humble leaders, we study how the humble board influences the strategic risk taking of enterprises using the data from 730 manufacturing enterprises listed on Shanghai and Shenzhen A-shares. The results show that the humble board promotes risk taking through choosing radical strategy, which indicates the willingness of the humble board to transcend itself rather than avoid overconfidence. As the informal hierarchy of the board becomes clear, the mediating effect of strategic radicalization is further enhanced. After distinguishing the nature of property right, we find the effect mechanism of the humble board on strategic risk taking is significant in non-state-owned enterprises instead of state-owned enterprises.
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Received: 28 June 2020
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