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The existing literature, generally based on US data, provides little evidence that supports whether managerial ability directly links to corporate risk-taking. Hence, this study aims to expand the limited extent by investigating the impact of managerial ability on risk-taking across Saudi firms.

This study mainly uses a panel fixed-effects model, including firm-year and firm-industry, to analyse a sample of Saudi non-financial firms from the period 2008 – 2018. In the empirical analysis, the managerial ability is lagged by one year to mitigate endogeneity concerns that may arise from reverse causality. To avoid omitted variables bias, this study includes several firm-level control variables.

The empirical results show that the relationships between managerial ability and firm risk-taking measures are negative and statistically significant with the standard deviation of return on assets (sROA) and leverage; positive and statistically significant with the Z-score. These results indicate that firms managed by high-ability executives have the propensities to take less risk. The main results remain robust to additional sensitivity analyses including an alternative measure for managerial ability, an alternative proxy for risk-taking using logistic regression analysis, using financial crises as dummy variables, and using a cross-lagged panel model with fixed effects for endogeneity concerns.

When evaluating firms, all market and society participants including researchers, regulators, supervisors, policymakers, and boards ought to pay close attention to managerial ability as one of the main factors affecting risk-taking.

Previously, closely related studies, focussing on the US market, mainly find that managers with high ability are receptive to risk-taking. This paper offers further international insight into the relevant literature by providing evidence that capable managers are inclined to take low risks.

This research aims to examine the moderating role of managerial ability on the relationship between risk-taking behavior and firms' performance.

This research uses 383 manufacturing firm-years listed on the Indonesian Stock Exchange as the research sample. The hypothesis test uses fixed-effect regression analysis.

The result shows that risk-taking behavior has a positive effect on firms' performance for higher managerial ability. Managerial ability provides higher knowledge, skill and information to get benefits and mitigate costs of risk-taking behavior to improve firms' performance. The role of managerial ability to make risk-taking behavior increase firms' performance occurs more for high-ability managers, dual CEO, shareholder-CEO and family CEO.

This research contributes to answering the conflicting arguments and filling the previous findings gap between risk-taking behavior and firm performance by considering managerial ability as a factor to create effective risk mitigation.

Discovering opportunities is a key entrepreneurship competence for those who want to start their own business and who choose to enter the workforce. In this study, the authors focus on the antecedents of the ability to discover entrepreneurial opportunities by uncovering how and when students' personal initiative (Frese and Fay, 2001) leads to an increase in this key competency. The purpose of this study was to examine the role of risk-taking and creativity in the interplay between personal initiative and opportunity discovery competencies among university students.

Data were collected with a self-assessment tool in two moments in time, using a sample of 103 university students from Portugal enrolled in an entrepreneurship course. The authors measured personal initiative and entrepreneurial risk-taking at the beginning of the entrepreneurship course (Time 1). Two months later (Time 2), by the end of an entrepreneurship course, the authors measured creativity and opportunity discovery abilities.

The results of this study showed that risk-taking mediates the effect of personal initiative on opportunity discovery and that creativity interacts with risk-taking and opportunity discovery. Specifically, the authors found that the relationship between entrepreneurial risk-taking and opportunity discovery is positive and statistically significant when students display average or above-average creativity. The indirect effect of the personal initiative on opportunity discovery through entrepreneurial risk-taking seems to increase when the student's creativity increases, as the index of moderated mediation is positive.

As with all studies, there are limitations to work of this study. First, data of this study is restricted to a sample of students from Portugal. As such, the authors should be careful about generalizations concerning students from other cultural settings; entrepreneurship competencies can differ across countries. Second, the findings of the present study are based on students’ self-reports regarding their own entrepreneurship competencies.

This work can inspire entrepreneurship educators to look at the entrepreneurship competencies models holistically and inspire future work to explore the relationship patterns between entrepreneurial competencies.

This study aims to analyze the effect of entrepreneurs’ improvisational behavior on business risk-taking and opportunity recognition, as well as to analyze its subsequent impact on firm performance. Moreover, this study examined whether the effect of entrepreneurs’ improvisational behavior on business risk-taking and opportunity recognition could be moderated by firm size and the business experience of entrepreneurs.

Online survey data were collected from 304 firms in Thailand that were randomly selected from a business directory. The data were assessed using partial least squares structural modeling.

The results confirmed that entrepreneurs who exhibited high levels of improvisational behavior tended to report that their firms engaged more actively in risk-taking and opportunity recognition. Moreover, risk-taking and opportunity recognition played a chain mediating effect in explaining the association between the improvisational behavior of entrepreneurs and firm performance. Regarding the moderating effects, this paper found that firm size negatively moderated the effect of improvisational behavior on risk-taking and opportunity recognition, while business experience of entrepreneurs only positively moderated the effect of improvisational behavior on risk-taking.

This study provided new knowledge by showing that improvisational behavior of entrepreneurs should be integrated with other firm advantages determined by firm size and the business experience of entrepreneurs to strengthen the ability to be more effective at risk-taking and opportunity recognition.

The goal of this chapter is to both provide a sociological explanation for gender differences in risk-taking behavior and to explain how such gender differences in behavior may contribute to women’s underrepresentation at the top of hierarchies.

I synthesize relevant research findings from the fields of social psychology, economics, psychology, decisions science, and sociology.

I argue that risk-taking is a gendered action due to both prescriptive and descriptive gender stereotypes. The fact that risk-taking is a gendered action offers sociological insights as to why women take fewer risks than men. First, women may rationally choose to take fewer risks, given that risk-taking is less rewarding for them. Second, the aforementioned gender stereotypes may cause institutional gatekeepers to give women fewer opportunities to take risks.

Sociologists should care about this phenomenon because large rewards are attached to successful risk-taking behavior. Thus, if men as a group take more successful risks than women as a group – simply because they take more risks, and thus by chance experience more successful risks – then more men than women will experience upward mobility caused by risk-taking.

Gender differences in risk-taking behavior likely depress the upward mobility of women and are a contributing factor to the dearth of women in top positions. In this era of falling formal barriers and women’s educational gains, gender differences in risk-taking behavior are likely of increasing importance for understanding the inequalities in hierarchies in U.S. society.

This study explores the effect of organizational identification (OID) on organizational innovativeness (OINN) in universities and higher education institutions (HEIs) of Iran, mediated by organizational risk-taking capability (ORTC).

A questionnaire was designed and distributed in universities and HEIs in three geographical regions of Iran. The sample includes deans of faculties, their assistants, and heads of departments, and heads, assistants, and employees of research and education offices. The authors determined the reliability and validity of the scales and used structural equation modeling to develop the conceptual model and to test hypothesized relationships.

The results show that the OID has a positive impact on the ORTC and OINN in universities and HEIs of Iran. Furthermore, the ORTC played a partially mediating role between the OID and OINN.

This study can lead to a theory of the effect of the OID on the OINN in higher education (HE) system, mediated by the ORTC. It can support practitioners working in the HE system as they create a climate that welcomes uncertainties, ambiguities, failures and mistakes in a risk-taking spirit and develop an innovation culture open to new things and generate ideas. Such a culture is rooted in a distinct organizational identity. The researchers recommend that the promising results of this study be pursued in a larger sample and also in universities and HEIs of other countries.

This study develops an understanding of the role of the OID with the university in fostering, enhancing and embedding the ORTC into university, and as a result, promoting its innovativeness culture.

The goal of this study is to identify behaviors linked to hotel managers who report a high degree of work‐related learning. To achieve this the researchers seeks to determine whether the extent to which managers were intrinsically motivated to learn, their perceived risk‐taking abilities, their attitudes towards learning and their attitudes towards the hospitality industry could determine their level of individual work‐related learning.

The study was conducted on the island of Jamaica. The survey was completed by 154 hotel managers and multiple regression analyses were used to analyze the data.

Of the four behaviors examined, two predicted the hotel managers' individual work‐related learning levels, i.e. their perceived risk‐taking abilities, and their attitudes towards learning. Managers who reported high work‐related learning levels also reported high risk‐taking abilities and more positive attitudes towards learning. The extent to which they were intrinsically motivated to learn and their attitudes towards the hospitality industry were not significant determinants of their work‐related learning levels.

The exercise had a number of limitations and these should be taken into consideration when reviewing the findings.

The study therefore pointed to two behaviors linked to intense individual learning amongst managers in hotels. Hotel managers wishing to display high levels of work‐related learning should therefore determine the extent to which they possess the behaviors connected and make the adjustments necessary.

The study was one of a small number which examined objectively individual learning in hospitality business.

The purpose of this paper is to develop a reliable and valid understanding of entrepreneurship and examine the relationships between small and medium‐sized Chinese manufacturing enterprises, the intensity of their entrepreneurial orientation and the degree of their internationalization. In addition, it examines whether entrepreneurial orientation would affect enterprises' internationalization strategies and their success.

The seven‐step procedure for scale development is used and survey data have been utilized to conduct statistical analysis.

The paper finds that entrepreneurial orientation is positively related to the degree of internationalization, particularly amongst the small and medium‐sized Chinese manufacturing enterprises. The international experiences of enterprises have significant importance and positively affect the degree of their internationalization. In addition, the degree of their success depends greatly on their attitudes towards risk taking, their ability to diversify internationally and successfully compete with those already established in the market.

A lot of studies have been conducted on entrepreneurship and entrepreneurial orientation. However, few people have ever studied the relation between the degree of entrepreneurial orientation and internationalization. Empirical studies on the correlations between entrepreneurial orientation and firm performance are not abundant in China. Furthermore, very few researches on the correlations between entrepreneurial orientation and internationalization have been conducted. The research presented in this paper is intended to bridge this gap. Through empirical analyses of their relationships, this paper shows how entrepreneurial strategies can stimulate competitive advantages and drive forward the international developments of the Chinese enterprises, particularly the small and medium‐sized.

This study aims to explore the direct and indirect effects of organizational stakeholder’s relationship on performance through innovativeness and risk-taking among small and medium enterprises (SMEs).

This study used the cluster sampling method to select the study sample and the questionnaire survey approach to 580 SMEs established in Tehran. A total of 150 completed questionnaires were returned. Partial least squares-structural equation modeling was administered to analyze data via the SmartPLS 3.0 software.

The survey outcomes revealed that organization-stakeholder relationship had an indirect effect on performance through innovativeness and risk-taking. The results indicated positive links for organization-stakeholder relationship and innovativeness, as well as the organization-stakeholder relationship to risk-taking.

This research is beneficial for entrepreneurs who wish to learn about the specific resources significant for venture growth, to devise effective strategies to expand their relationship with stakeholders and to consider the significance of the correlations established, in this study, through innovativeness and risk-taking.

This research is one of the few attempts that have addressed the importance of innovativeness and risk-taking as the key mechanisms to transform the advantages of organization-stakeholder relationships to enhance performance.

The purpose of this paper is to analyze the merger and acquisition (M&A) strategy focusing on Indian company’s approaches and to understand steps of the process adopted by them. It focuses on the rationality of M&A and its impact on the profitability. This paper also discusses whether financial transaction in terms of value is right or done because of eagerness to expand by calculating the financial value of brand equity independently.

The operating performance, capital adequacy and solvency measures were compared to three-years pre- and post-merger from the financial statements of the organizations through financial valuation of brands. Inter-brand and RKS model are used to calculate the brand value. The perception study on M&A is also conducted by interviewing stakeholders. This paper provides a theoretical and practical basis to decide on whether M&A. The present paper has taken recent mega M&A of Ranbaxy Lab by Sun pharmaceuticals for the analysis.

The results of the paper showed that Return on investment did not indicate significant improvement, but on average, it can be concluded that overall performance of the acquirer improves as a result of M&A activity as per the study. The decisions on M&A are more emotional than rational. The present paper reveals that M&A of pharmaceutical company was riskier because of emotional decisions. Research has proposed “Merger, acquisition Theory (RERC MA theory) based on rational, emotion, risk taking ability culture” to understand the M&A.

This paper is more focused on emerging markets which is more active with better gross domestic product (GDP) growth. It is more on analysis of financial decisions and has not taken customer equity, employee morale and engagement. A further study is suggested in the same areas. Managerial Implications: This paper will enable the managers to withstand the emotional influence and will help them to be more professional approach which will benefit the organization and stakeholder better. Mangers should look for long-term impact than short-term impact the present paper will also help them to understand on how financial calculations will help them to take more rational decisions.

Although the topic is not very new, a lot of literature is available on M&A, but the pharmaceutical sector is comparatively new for such kind of studies. Specifically, the selection of respondents and brand valuation mechanism has got practical implications. Earlier papers on M&A paper are more focused on customers’ equity, but a financial analysis of M&A is done in the present paper will help to evaluate merger and acquisition process more analytically. Financial calculation for evaluating M&A is the highlight of this research paper. Study of M&A from emerging markets will help to increase the knowledge as such papers are few. Research uses two important financial tools to measure financial brand equity and tries to justify the need for more rational rather than emotional approach. Research has proposed “Merger, acquisition Theory (RERC MA theory) based on rational, emotion, risk taking ability culture” to understand the M&A.