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© 2023 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.

Abstract

Private construction businesses have grown quickly, greatly boosting China’s economic growth; nonetheless, these businesses suffer tremendous developmental uncertainty, particularly when compared to larger state-owned businesses. The traits of the top management team (TMT) may have a direct impact on how risk-taking and decision-making behaviors are exhibited by businesses, according to earlier studies. The majority of private construction companies in China are family businesses with family members making up the majority of their top executives. As a result, these companies are vulnerable to family centralization, which will definitely boost their risk-taking level. This study used a sample of private listed companies in China’s construction industry from 2009 to 2019 to explore the impact of CEO traits on the risk-taking degree of enterprises. The findings show that a higher percentage of top female managers and a higher average rate of TMT member both lower the level of risk taking in private construction businesses. The level of risk taking, however, is positively impacted by the top management’s higher average education level. The average tenure and overseas experience of TMTs and the degree of risk taking in private construction enterprises are not significantly correlated. Additionally, the degree of risk taking in private construction firms can vary depending on the qualities of the senior management team.

Details

Title
The Impact of Top Management Team Characteristics on the Risk Taking of Chinese Private Construction Enterprises
Author
Zhang, Yunhua 1   VIAFID ORCID Logo  ; Cao, Chen 1 ; Gu, Jiaxing 1 ; Garg, Harish 2   VIAFID ORCID Logo 

 School of Business, Ningbo University, Ningbo 315211, China 
 School of Mathematics, Thapar Institute of Engineering & Technology (Deemed University), Patiala 147004, Punjab, India; Department of Mathematics, Graphic Era Deemed to be University, Dehradun 248002, Uttarakhand, India; Applied Science Research Center, Applied Science Private University, Amman 11931, Jordan 
First page
67
Publication year
2023
Publication date
2023
Publisher
MDPI AG
e-ISSN
20798954
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
2779550133
Copyright
© 2023 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.