Managerial Risk Taking: A Multitheoretical Review and Future Research Agenda

Journal of Management

Volumn 43, Issue 1, 2017, Pages 137-169

  Hoskisson, Robert E ^a   Chirico, Francesco ^b,c  

^a Daniel)   (United States)

^b JÖNKÖPING UNIVERSITY   (Sweden)

^c SCHOOL OF ENGINEERING AND SCIENCES   (Mexico)

Author keywords

agency theory; behavioral theory of the firm; decisions under risk uncertainty; macro topics; top management teams upper echelon

Indexed keywords

EID: 85004074785     PISSN: 01492063     EISSN: 15571211     Source Type: Journal    
DOI: 10.1177/0149206316671583     Document Type: Article

References (279)

1. Aguilera R. V., Jackson G., 2003. The cross-national diversity of corporate governance: Dimensions and determinants. Academy of Management Review, 28: 447-465.
2. Aguilera R. V., Jackson G., 2010. Comparative and international corporate governance. Academy of Management Annals, 4: 485-556.
3. Amihud Y., Lev B., 1981. Risk reduction as a managerial motive for conglomerate mergers. Bell Journal of Economics, 12: 605-617.
4. Ancona D., 1990. Top management teams: Preparing for the revolution. In Carroll J. S., (Ed.), Applied social psychology and organizational settings. Hillsdale, NJ: Erlbaum.
5. Andersen T. J., Denrell J., Bettis R. A., 2007. Strategic responsiveness and Bowman’s risk-return paradox. Strategic Management Journal, 28: 407-429.
6. Arrfelt M., Wiseman R. M., Hult G. T. M., 2013. Looking backward instead of forward: Aspiration-driven influences on the efficiency of the capital allocation process. Academy of Management Journal, 56: 1081-1103.
7. Audia P. G., Brion S., 2007. Reluctant to change: Self-enhancing responses to diverging performance measures. Organizational Behavior and Human Decision Processes, 102: 255-269.
8. Audia P. G., Greve H. R., 2006. Less likely to fail: Low performance, firm size, and factory expansion in the shipbuilding industry. Management Science, 52: 83-94.
9. Bacharach S. B., 1989. Organizational theories: Some criteria for evaluation. Academy of Management Review, 14: 496-515.
10. Balkin D. B., Markman G. D., Gómez-Mejía L. R., 2000. Is CEO pay in high-technology firms related to innovation? Some empirical evidence. Academy of Management Journal, 43: 1118-1129.
11. Bamberger P., Fiegenbaum A., 1996. The role of strategic reference points in explaining the nature and consequences of human resource strategy. Academy of Management Review, 21: 926-958.
12. Bantel K. A., Jackson S. E., 1989. Top management and innovations in banking: Does the composition of the top team make a difference? Strategic Management Journal, 10: 107-124.
13. Barker V. L., III Mueller G. C., 2002. CEO characteristics and firm R&D spending. Management Science, 48: 782-801.
14. Barr P. S., 1998. Adapting to unfamiliar environmental events: A look at the evolution of interpretation and its role in strategic change. Organization Science, 9: 644-669.
15. Barr P. S., Stimpert J. L., Huff A. S., 1992. Cognitive change, strategic action, and organizational renewal. Strategic Management Journal, 13: 15-36.
16. Barreto I., 2012. A behavioral theory of market expansion based on the opportunity prospects rule. Organization Science, 23: 1008-1023.
17. Baucus M. S., Near J. P., 1991. Can illegal corporate behavior be predicted? An event history analysis. Academy of Management Journal, 34: 9-36.
18. Baum J. A. C., Dahlin K. B., 2007. Aspiration performance and railroads’ patterns of learning from train wrecks and crashes. Organization Science, 18: 368-385.
19. Baum J., Rowley T. J., Shipilov A. V., Chuang Y. T., 2005. Dancing with strangers: Aspiration performance and the search for underwriting syndicate partners. Administrative Science Quarterly, 50: 536-575.
20. Baysinger B., Hoskisson R. E., 1990. The composition of boards of directors and strategic control: Effects on corporate strategy. Academy of Management Review, 15: 72-87.
21. Bazerman M. H., Neale M. A., 1982. Improving negotiation effectiveness under final offer arbitration: The role of selection and training. Journal of Applied Psychology, 67: 543-548.
22. Beatty R. P., Zajac E. J., 1994. Managerial incentives, monitoring, and risk bearing: A study of executive compensation, ownership, and board structure in initial public offerings. Administrative Science Quarterly, 39: 313-335.
23. Bedeian A. G., 2002. The dean’s disease: How the darker side of power manifests itself in the office of dean. Academy of Management Learning and Education, 1: 164-173.
24. Bell R. G., Filatotchev I., Aguilera R. V., 2014. Corporate governance and investors’ perceptions of foreign IPO value: An institutional perspective. Academy of Management Journal, 57: 301-320.
25. Berle A., Means G., 1932. The modern corporation and private property. New Brunswick, NJ: Transaction Publishers.
26. Berrone P., Cruz C., Gómez-Mejía L. R., Larraza-Kintana M., 2010. Socioemotional wealth and corporate responses to institutional pressures: Do family-controlled firms pollute less? Administrative Science Quarterly, 55: 82-113.
27. Bertrand M., Schoar A., 2003. Managing with style: The effect of managers on firm policies. Quarterly Journal of Economics, 118: 1169-1208.
28. Bliss R., Rosen R. J., 2001. CEO compensation and bank mergers. Journal of Financial Economics, 61: 107-138.
29. Boeker W., 1997a. Executive migration and strategic change: The effect of top manager movement on product-market entry. Administrative Science Quarterly, 42: 213-236.
30. Boeker W., 1997b. Strategic change: The influence of managerial characteristics and organizational growth. Academy of Management Journal, 40: 152-170.
31. Boellis A., Mariotti S., Minichilli A., Piscitello L., 2016. Family involvement and firms’ establishment mode choice in foreign markets. Journal of International Business Studies, 47: 929-950.
32. Bowman E., 1980. A risk/return paradox for strategic management. Sloan Management Review, 21: 17-31.
33. Bowman E. H., 1982. Risk seeking by troubled firms. Sloan Management Review, 23: 33-42.
34. Bromiley P., 1991. Testing a causal model of corporate risk taking and performance. Academy of Management Journal, 34: 37-59.
35. Bromiley P., 2009. A prospect theory model of resource allocation. Decision Analysis, 6: 124-138.
36. Bromiley P., 2010. Looking at prospect theory. Strategic Management Journal, 31: 1357-1370.
37. Bromiley P., Miller K. D., Rau D., 2001. Risk in strategic management research. In Hitt M., Freeman R. E., Harrison J. S., (Eds.), The Blackwell handbook of strategic management. Cambridge, UK: Wiley-Blackwell.
38. Busenitz L. W., Barney J. B., 1997. Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision-making. Journal of Business Venturing, 12: 9-30.
39. Bushee B. J., 1998. The influence of institutional investors on myopic R&D investment behavior. Accounting Review, 73: 305-333.
40. Campbell W. K., Goodie A. S., Foster J. D., 2004. Narcissism, confidence, and risk attitude. Journal of Behavioral Decision Making, 17: 297-311.
41. Cao Q., Simsek Z., Jansen J. J. P., 2012. CEO social capital and entrepreneurial orientation of the firm: Bonding and bridging effects. Journal of Management, 41: 1957-1981.
42. Carpenter M. A., Geletkanycz M. A., Sanders W. G., 2004. Upper echelons research revisited: Antecedents, elements, and consequences of top management team composition. Journal of Management, 30: 749-778.
43. Carpenter M. A., Pollock T. G., Leary M. M., 2003. Testing a model of reasoned risk-taking: Governance, the experience of principals and agents, and global strategy in high-technology IPO firms. Strategic Management Journal, 24: 803-820.
44. Castañer X., Kavadis N., 2013. Does good governance prevent bad strategy? A study of corporate governance, financial diversification, and value creation by French corporations, 2000-2006. Strategic Management Journal, 34: 863-876.
45. Chaganti R., Sambharya R., 1987. Strategic orientation and characteristics of upper management. Strategic Management Journal, 8: 393-401.
46. Chatterjee A., Hambrick D. C., 2007. It’s all about me: Narcissistic chief executive officers and their effects on company strategy and performance. Administrative Science Quarterly, 52: 351-386.
47. Chatterjee A., Hambrick D. C., 2011. Executive personality, capability cues, and risk taking: How narcissistic CEOs react to their successes and stumbles. Administrative Science Quarterly, 56: 202-237.
48. Chattopadhyay P., Glick W. H., Huber G. P., 2001. Organizational actions in response to threats and opportunities. Academy of Management Journal, 44: 937-955.
49. Chen W., 2008. Determinants of firms’ backward- and forward-looking R&D search behavior. Organization Science, 19: 609-622.
50. Chen W., Miller K. D., 2007. Situational and institutional determinants of firms’ R&D search intensity. Strategic Management Journal, 28: 369-381.
51. Child J., 1972. Organizational structure, environment and performance: The role of strategic choice. Sociology, 6: 1-22.
52. Cho T. S., Hambrick D. C., 2006. Attention as the mediator between top management team characteristics and strategic change: The case of airline deregulation. Organization Science, 17: 453-469.
53. Chrisman J. J., Patel P. C., 2012. Variations in R&D investments of family and nonfamily firms: Behavioral agency and myopic loss aversion perspectives. Academy of Management Journal, 55: 976-997.
54. Christensen D. M., Dhaliwal D. S., Boivie S., Graffin S. D., 2015. Top management conservatism and corporate risk strategies: Evidence from managers’ personal political orientation and corporate tax avoidance. Strategic Management Journal, 36: 1918-1938.
55. Chua J., Chrisman J. J., De Massis A., 2015. A closer look at socioemotional wealth: Its flows, stocks, and prospects for moving forward. Entrepreneurship, Theory and Practice, 39: 173-182.
56. Coles J., Daniel N., Naveen L., 2006. Managerial incentives and risk taking. Journal of Financial Economics, 79: 431-468.
57. Connelly B. L., Tihanyi L., Certo S. T., Hitt M. A., 2010. Marching to the beat of different drummers: The influence of institutional owners on competitive actions. Academy of Management Journal, 53: 723-742.
58. Cowen A. P., King A. W., Marcel J. J., 2016. CEO severance agreements: A theoretical examination and research agenda. Academy of Management Review, 41: 151-169.
59. Crossland C., Zyung J., Hiller N. J., Hambrick D. C., 2014. CEO career variety: Effects on firm-level strategic and social novelty. Academy of Management Journal, 57: 652-674.
60. Cyert R. M., March J. G., 1963. A behavioral theory of the firm. Oxford, UK: Blackwell Publishing House.
61. Cyert R. M., March J. G., 1992. A behavioral theory of the firm (2nd ed.). Cambridge, MA: Blackwell.
62. Daily C. M., Certo S. T., Dalton D. R., Roengpitya R., 2003. IPO underpricing: A meta-analysis and research synthesis. Entrepreneurship Theory and Practice, 27: 271-295.
63. Daily C. M., Dalton D. R., 1994. Bankruptcy and corporate governance: The impact of board composition and structure. Academy of Management Journal, 37: 1603-1617.
64. Dalton C. M., Dalton D. R., 2005. Boards of directors: Utilizing empirical evidence in developing practical prescriptions. British Journal of Management, 16: S91-S97.
65. Dalton D. R., Daily C. M., Ellstrand A. E., Johnson J. L., 1998. Meta-analytic review of board composition, leadership structure, and financial performance. Strategic Management Journal, 19: 269-290.
66. Dalton D. R., Hitt M. A., Certo S. T., Dalton C. M., 2007. The fundamental agency problem and its mitigation. The Academy of Management Annals, 1: 1-64.
67. de Vries M. F. R. K., Miller D., 1985. Narcissism and leadership: An object relations perspective. Human Relations, 38: 583-601.
68. Dearborn D. C., Simon H. A., 1958. Selective perception: A note on the departmental affiliations of executives. Sociometry, 21: 144-150.
69. Delgado-Garcia J. B., De la Fuente-Sabate J. M., 2010. How do CEO emotions matter? Impact of CEO affective traits on strategic and performance conformity in the Spanish banking industry. Strategic Management Journal, 31: 562-574.
70. Desender K. A., Aguilera R. V., Lópezpuertas-Lamy M., Crespi R., 2014. A clash of governance logics: Foreign ownership and board monitoring. Strategic Management Journal, 37: 349-369. doi:10.1002/smj.2344
71. Deutsch Y., Keil T., Laamanen T., 2007. Decision making in acquisitions: The effect of outside directors’ compensation on acquisition patterns. Journal of Management, 33: 30-56.
72. Deutsch Y., Keil T., Laamanen T., 2011. A dual agency view of board compensation: The joint effects of outside director and CEO stock options on firm risk. Strategic Management Journal, 32: 212-227.
73. Devers C. E., Cannella A. A., Reilly G. P., Yoder M. E., 2007. Executive compensation: A multidisciplinary review of recent developments. Journal of Management, 33: 1016-1072.
74. Devers C. E., McNamara G., Wiseman R. M., Arrfelt M., 2008. Moving closer to the action: Examining compensation design effects on firm risk. Organization Science, 19: 548-566.
75. Devers C. E., Wiseman R. M., Holmes R. M., 2007. The effects of endowment and loss aversion in managerial stock option valuation. Academy of Management Journal, 50: 191-208.
76. Diestre L., Rajagopalan N., 2011. An environmental perspective on diversification: The effects of chemical relatedness and regulatory sanctions. Academy of Management Journal, 54: 97-115.
77. Dong Z., Wang C., Xie F., 2010. Do executive stock options induce excessive risk taking? Journal of Banking and Finance, 34: 2518-2529.
78. Eggers J. P., Kaplan S., 2009. Cognition and renewal: Comparing CEO and organizational effects on incumbent adaptation to technical change. Organization Science, 20: 461-477.
79. Eggers J. P., Kaplan S., 2013. Cognition and capabilities: A multi-level perspective. Academy of Management Annals, 7: 295-340.
80. Eisenhardt K. M., 1989. Agency theory: An assessment and review. Academy of Management Review, 14: 57-74.
81. Elsaid E., Ursel N. D., 2011. CEO succession, gender and risk taking. Gender in management. Anais: An International Journal, 26: 499-512.
82. Faleye O., Hoitash R., Hoitash U., 2011. The costs of intense board monitoring. Journal of Financial Economics, 101: 160-181
83. Ferrier W. J., Fhionnlaoich C. M., Smith K. G., Grimm C. M., 2002. The impact of performance distress on aggressive competitive behavior: A reconciliation of conflicting views. Managerial and Decision Economics, 23: 301-316.
84. Festinger L., 1954. A theory of social comparison processes. Human Relations, 7: 117-140.
85. Finkelstein S., 1992. Power in top management teams: Dimensions, measurement, and validation. Academy of Management Journal, 35: 505-538.
86. Finkelstein S., Hambrick D. C., 1990. Top-management team tenure and organizational outcomes: The moderating role of managerial discretion. Administrative Science Quarterly, 35: 484-503.
87. Finkelstein S., Hambrick D. C., Cannella A. A., 2009. Strategic leadership: Theory and research on executives, top management teams, and boards. New York, NY: Oxford University Press.
88. Fligstein N., 1990. The transformation of corporate control. Cambridge, MA: Harvard University Press.
89. Flynn F. J., 2003. How much should I give and how often? The effects of generosity and frequency of favor exchange on social status and productivity. Academy of Management Journal, 46: 539-553.
90. Fredrickson J. W., Davis-Blake A., Sanders W. G., 2010. Sharing the wealth: Social comparisons and pay dispersion in the CEO’s top team. Strategic Management Journal, 31: 1031-1053.
91. Freeman R. E., 1984. Strategic management: A stakeholder approach. Boston, MA: Pitman.
92. Gaba V., Bhattacharya S., 2012. Aspirations, innovation, and corporate venture capital: A behavioral perspective. Strategic Entrepreneurship Journal, 6: 178-199.
93. Gaba V., Joseph J., 2013. Corporate structure and performance feedback: Aspirations and adaptation in M-form firms. Organization Science, 24: 1102-1119.
94. Gamache D. L., McNamara G., Mannor M. J., Johnson R. E., 2015. Motivated to acquire? The impact of CEO regulatory focus on firm acquisitions. Academy of Management Journal, 58: 1261-1282.
95. Garbuio M., King A. W., Lovallo D., 2011. Looking inside psychological influences on structuring a firm’s portfolio of resources. Journal of Management, 37: 1444-1463.
96. Gavetti G., Greve H. R., Levinthal D. A., Ocasio W., 2012. The behavioral theory of the firm: Assessment and prospects. Academy of Management Annals, 6: 1-40.
97. Gedajlovic E., Carney M., Chrisman J. J., Kellermanns F. W., 2012. The adolescence of family firm research taking stock and planning for the future. Journal of Management, 38: 1010-1037.
98. Geletkanycz M. A., 1997. The salience of “culture’s consequences”: The effects of cultural values on top executive commitment to the status quo. Strategic Management Journal, 18: 615-634.
99. Geletkanycz M. A., Black S. S., 2001. Bound by the past? Experience-based effects on commitment to the strategic status quo. Journal of Management, 27: 3-21.
100. Geletkanycz M. A., Hambrick D. C., 1997. The external ties of top executives: Implications for strategic choice and performance. Administrative Science Quarterly, 42: 654-681.
101. Gerstner W.-C., König A., Enders A., Hambrick D. C., 2013. CEO narcissism, audience engagement, and organizational adoption of technological discontinuities. Administrative Science Quarterly, 58: 257-291.
102. Gómez-Mejía L. R., Cruz C., Berrone P., De Castro J., 2011. The bind that ties: Socioemotional wealth preservation in family firms. Academy of Management Annals, 5: 653-707.
103. Gómez-Mejía L. R., Haynes K. T., Núñez-Nickel M., Jacobson K. J. L., Moyano-Fuentes J., 2007. Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52: 106-137.
104. Gómez-Mejía L. R., Makri M., Larraza-Kintana M. L., 2010. Diversification decisions in family-controlled firms. Journal of Management Studies, 47: 223-252.
105. Gómez-Mejía L. R., Patel P. C., Zellweger T. M., 2015. In the horns of the dilemma: Socioemotional wealth, and financial wealth and acquisitions in family firms. Journal of Management. doi:10.1177/0149206315614375
106. Gordon S. S., Stewart W. H., Sweo R., Luker W. A., 2000. Convergence versus strategic reorientation: The antecedents of fast-paced organizational change. Journal of Management, 26: 911-945.
107. Greve H. R., 1998. Performance, aspirations, and risky organizational change. Administrative Science Quarterly, 43: 58-86.
108. Greve H. R., 2003. A behavioral theory of R&D expenditures and innovations: Evidence from shipbuilding. Academy of Management Journal, 46: 685-702.
109. Greve H. R., 2008. A behavioral theory of firm growth: Sequential attention to size and performance goals. Academy of Management Journal, 51: 476-494.
110. Greve H. R., 2011. Positional rigidity: Low performance and resource acquisition in large and small firms. Strategic Management Journal, 32: 103-114.
111. Grimm C. M., Smith K. G., 1991. Management and organizational change: A note on the railroad industry. Strategic Management Journal, 12: 557-562.
112. Haleblian J., Devers C. E., McNamara G., Carpenter M. A., Davison R. B., 2009. Taking stock of what we know about mergers and acquisitions: A review and research agenda. Journal of Management, 35: 469-502.
113. Hambrick D. C., 2005. Upper echelons theory: Origins, twists and turns, and lessons learned. In Hitt M. A., Smith K. G., (Eds.). Great minds in management: The process of theory development: 108-127. New York: Oxford University Press.
114. Hambrick D. C., 2007. Upper echelons theory: An update. Academy of Management Review, 32: 334-343.
115. Hambrick D. C., Brandon G. L., 1988. Executive values. Oxford, UK: Elsevier Science/JAI.
116. Hambrick D. C., Finkelstein S., 1987. Managerial discretion: A bridge between polar views of organizations. Research in Organizational Behavior, 9: 369-406.
117. Hambrick D. C., Fukutomi G. D., 1991. The seasons of a CEO’s tenure. Academy of Management Review, 16: 719-742.
118. Hambrick D. C., Geletkanycz M. A., Fredrickson J. W., 1993. Top executive commitment to the status quo: Some tests of its determinants. Strategic Management Journal, 14: 401-418.
119. Hambrick D. C., Jackson E. M., 2000. Outside directors with a stake: The linchpin in improving governance. California Management Review, 42: 108-127.
120. Hambrick D. C., Mason P. A., 1984. Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9: 193-206.
121. Harford J., Li K., 2007. Decoupling CEO wealth and firm performance: The case of acquiring CEOs. Journal of Finance, 62: 917-949.
122. Harris J., Bromiley P., 2007. Incentives to cheat: The influence of executive compensation and firm performance on financial misrepresentation. Organization Science, 18: 350-367.
123. Hayward M. L. A., Hambrick D. C., 1997. Explaining the premiums paid for large acquisitions: Evidence of CEO hubris. Administrative Science Quarterly, 42: 103-127.
124. Hayward M. L. A., Rindova V. P., Pollock T. G., 2004. Believing one’s own press: The causes and consequences of CEO celebrity. Strategic Management Journal, 25: 637-653.
125. Hayward M. L. A., Shimizu K., 2006. De-commitment to losing strategic action: Evidence from the divestiture of poorly performing acquisitions. Strategic Management Journal, 27: 541-557.
126. Helfat C. E., Peteraf M. A., 2015. Managerial cognitive capabilities and the microfoundations of dynamic capabilities. Strategic Management Journal, 36: 831-850.
127. Heracleous L., Lan L. L., 2012. Agency theory, institutional sensitivity, and inductive reasoning: Towards a legal perspective. Journal of Management Studies, 49: 223-239.
128. Hiller N. J., Hambrick D. C., 2005. Conceptualizing executive hubris: The role of (hyper-) core self-evaluations in strategic decision-making. Strategic Management Journal, 26: 297-319.
129. Hillman A. J., Dalziel T., 2003. Boards of directors and firm performance: Integrating agency and resource dependence perspectives. Academy of Management Review, 28: 383-396.
130. Hirshleifer D., Low L., Teoh S. H., 2012. Are overconfident CEOs better innovators? Journal of Finance, 67: 1457-1498.
131. Hitt M. A., Tyler B. B., 1991. Strategic decision models: Integrating different perspectives. Strategic Management Journal, 12: 327-351.
132. Holmes R. M., Jr. Bromiley P., Devers C. E., Holcomb T. R., McGuire J. B., 2011. Management theory applications of prospect theory: Accomplishments, challenges, and opportunities. Journal of Management, 37: 1069-1107.
133. Holmstrom B., 1979. Moral hazard and observability. Bell Journal of Economics, 10: 74-91.
134. Hoskisson R. E., Castleton M. W., Withers M. C., 2009. Complementarity in monitoring and bonding: More intense monitoring leads to higher executive compensation. Academy of Management Perspectives, 23: 57-74.
135. Hoskisson R. E., Hitt M. A., Hill C. W. L., 1991. Managerial risk taking in diversified firms: An evolutionary perspective. Organization Science, 2: 296-314.
136. Hoskisson R. E., Hitt M. A., Hill C. W. L., 1993. Managerial incentives and investment in R&D in large multiproduct firms. Organization Science, 4: 325-341.
137. Hoskisson R. E., Hitt M. A., Johnson R. A., Grossman W., 2002. Conflicting voices: The effects of institutional ownership heterogeneity and internal governance on corporate innovation strategies. Academy of Management Journal, 45: 697-716.
138. Hoskisson R. E., Johnson R. A., Moesel D. D., 1994. Corporate divestiture intensity in restructuring firms: Effects of governance, strategy, and performance. Academy of Management Journal, 37: 1207-1251.
139. Iyer D. N., Miller K. D., 2008. Performance feedback, slack, and the timing of acquisitions. Academy of Management Journal, 51: 808-822.
140. Jawahar I. M., McLaughlin G. L., 2001. Toward a descriptive stakeholder theory: An organizational life cycle approach. Academy of Management Review, 26: 397-414.
141. Jensen M. C., Meckling W. H., 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3: 305-360.
142. Jensen M. C., Murphy K. J., 1990. Performance pay and top-management incentives. Journal of Political Economy, 98: 225-264.
143. Jensen M., Zajac E. J., 2004. Corporate elites and corporate strategy: How demographic preferences and structural position shape the scope of the firm. Strategic Management Journal, 25: 507-524.
144. Jones T. M., 1995. Instrumental stakeholder theory: A synthesis of ethics and economics. Academy of Management Review, 20: 404-437.
145. Joseph J., Ocasio W., McDonnell M. H., 2014. The structural elaboration of board independence: Executive power, institutional logics, and the adoption of CEO-only board structures in U.S. corporate governance. Academy of Management Journal, 57: 1834-1858.
146. Judge T. A., Locke E. A., Durham C. C., 1997. The dispositional causes of job satisfaction: A core evaluations approach. Research in Organizational Behavior, 19: 151-188.
147. Kahneman D., Tversky A., 1979. Prospect theory: An analysis of decision under risk. Econometrica, 47: 263-291.
148. Kaplan S., 2008. Cognition, capabilities, and incentives: Assessing firm response to the fiber-optic revolution. Academy of Management Journal, 51: 672-695.
149. Kaplan S., Murray F., Henderson R., 2003. Discontinuities and senior management: Assessing the role of recognition in pharmaceutical firm response to biotechnology. Industrial and Corporate Change, 12: 203-233.
150. Keats B. W., Hitt M. A., 1988. A causal model of linkages among environmental dimensions, macro organizational characteristics, and performance. Academy of Management Journal, 31: 570-598.
151. Kempf A., Ruenzi S., Thiele T., 2009. Employment risk, compensation incentives, and managerial risk taking: Evidence from the mutual fund industry. Journal of Financial Economics, 92: 92-108.
152. Kim H., Hoskisson R. E., Wan W. P., 2004. Power dependence, diversification strategy, and performance in keiretsu member firms. Strategic Management Journal, 25: 613-636.
153. Kim J. Y., Finkelstein S., Haleblian J., 2015. All aspirations are not created equal: The differential effects of historical and social aspirations on acquisition behavior. Academy of Management Journal, 58: 1361-1388.
154. Kimberly J. R., Evanisko M. J., 1981. Organizational innovation: The influence of individual, organizational, and contextual factors on hospital adoption of technological and administrative innovations. Academy of Management Journal, 24: 689-713.
155. Kraiczy N. D., Hack A., Kellermanns F. W., 2015. What makes a family firm innovative? CEO risk-taking propensity and the organizational context of family firms. Journal of Product Innovation Management, 32: 334-348.
156. Krause R., Semadeni M., Cannella A. A., 2013. External COO/presidents as expert directors: A new look at the service role of boards. Strategic Management Journal, 34: 1628-1641.
157. Kwee Z., Van Den Bosch F. A. J., Volberda H. W., 2011. The influence of top management team’s corporate governance orientation on strategic renewal trajectories: A longitudinal analysis of Royal Dutch Shell Plc, 1907-2004. Journal of Management Studies, 48: 984-1014.
158. Labianca G., Fairbank J. F., Andrevski G., Parzen M., 2009. Striving toward the future: Aspiration-performance discrepancies and planned organizational change. Strategic Organization, 7: 433-466.
159. Lant T. K., Milliken F. J., Batra B., 1992. The role of managerial learning and interpretation in strategic persistence and reorientation: An empirical exploration. Strategic Management Journal, 13: 585-608.
160. Larraza-Kintana M., Wiseman R. M., Gómez-Mejía L. R., Welbourne T. M., 2007. Disentangling compensation and employment risks using the behavioral agency model. Strategic Management Journal, 28: 1001-1019.
161. Latham S. F., Braun M., 2009. Managerial risk, innovation, and organizational decline. Journal of Management, 35: 258-281.
162. Laughhunn D. J., Payne J. W., Crum R., 1980. Managerial risk preferences for below-target returns. Management Science, 26: 1238-1249.
163. Laux C., Laux V., 2009. Board committees, CEO compensation, and earnings management. Accounting Review, 84: 869-891.
164. Leitterstorf M. P., Rau S. B., 2014. Socioemotional wealth and IPO underpricing of family firms. Strategic Management Journal, 35: 751-760.
165. Lewellyn K. B., Muller-Kahle M. I., 2012. CEO power and risk taking: Evidence from the subprime lending industry. Corporate Governance: An International Review, 20: 289-307.
166. Li J., Hambrick D. C., 2005. Factional groups: A new vantage on demographic faultlines, conflict, and disintegration in work teams. Academy of Management Journal, 48: 794-813.
167. Li J., Tang Y., 2010. CEO hubris and firm risk taking in China: The moderating role of managerial discretion. Academy of Management Journal, 53: 45-68.
168. Lim E. N. K., McCann B. T., 2013. The influence of relative values of outside director stock options on firm strategic risk from a multiagent perspective. Strategic Management Journal, 34: 1568-1590.
169. Lim E. N. K., McCann B. T., 2014. Performance feedback and firm risk taking: The moderating effects of CEO and outside director stock options. Organization Science, 25: 262-282.
170. Liu Y., Taffler R., John K., 2009. CEO value destruction in M&A deals and beyond. Long Range Planning, 31: 347-353.
171. Locke K. D., 2003. Status and solidarity in social comparison: Agentic and communal values and vertical and horizontal directions. Journal of Personality and Social Psychology, 84: 619-631.
172. Low A., 2009. Managerial risk taking behavior and equity-based compensation. Journal of Financial Economics, 92: 470-490.
173. Lubatkin M. H., Lane P. J., Collin S.-O., Very P., 2005. Origins of corporate governance in the USA, Sweden and France. Organization Studies, 26: 867-888.
174. Lubit R., 2002. The long-term organizational impact of destructively narcissistic managers. Academy of Management Executive, 16: 127-138.
175. Lynall M. D., Golden B. R., Hillman A. J., 2003. Board composition from adolescence to maturity: A multitheoretic view. Academy of Management Review, 28: 416-431.
176. Madsen P. M., 2013. Perils and profits: A reexamination of the link between profitability and safety in U.S. aviation. Journal of Management, 39: 763-791.
177. Malmendier U., Tate G., 2005a. CEO overconfidence and corporate investment. Journal of Finance, 60: 2661-2700.
178. Malmendier U., Tate G., 2005b. Does overconfidence affect corporate investment? CEO overconfidence measures revisited. European Financial Management, 11: 649-659.
179. Malmendier U., Tate G., 2008. Who makes acquisitions? CEO overconfidence and the market’s reaction. Journal of Financial Economics, 89: 20-43.
180. March J. G., 1962. The business firm as a political coalition. Journal of Politics, 24: 662-678.
181. March J. G., 1988. Variable risk preferences and adaptive aspirations. Journal of Economic Behavior and Organization, 9: 5-24.
182. March J. G., Shapira Z., 1987. Managerial perspectives on risk and risk taking. Management Science, 33: 1404-1418.
183. March J. G., Shapira Z., 1992. Variable risk preferences and the focus of attention. Psychological Review, 99: 172-183.
184. Markovitch D. G., Steckel J. H., Yeung B., 2005. Using capital markets as market intelligence: Evidence from the pharmaceutical industry. Management Science, 51: 1467-1480.
185. Martin G. P., Gómez-Mejía L. R., Wiseman R. M., 2013. Executive stock options as mixed gambles: Revisiting the behavioral agency model. Academy of Management Journal, 56: 451-472.
186. Martin G., Washburn N., Makri M., Gómez-Mejía L. R., 2015. Not all risk taking is born equal: The behavioral agency model and CEO’s perception of firm efficacy. Human Resource Management, 54: 483-498.
187. Massini S., Lewin A. Y., Greve H. R., 2005. Innovators and imitators: Organizational reference groups and adoption of organizational routines. Research Policy, 34: 1550-1569.
188. Matta E., Beamish P. W., 2008. The accentuated CEO career horizon problem: Evidence from international acquisitions. Strategic Management Journal, 29: 683-700.
189. Meindl J. R., Ehrlich S. B., Dukerich J. M., 1985. The romance of leadership. Administrative Science Quarterly, 30: 78-102.
190. Menz M., 2012. Functional top management team members: A review, synthesis, and research agenda. Journal of Management, 38: 45-80.
191. Miller D., 1991. Stale in the saddle: CEO tenure and the match between organization and environment. Management Science, 37: 34-52.
192. Miller D., de Vries M. F. R., Toulouse J. M., 1982. Top executive locus of control and its relationship to strategy-making, structure, and environment. Academy of Management Journal, 25: 237-253.
193. Miller D., Le Breton-Miller I., 2014. Deconstructing socioemotional wealth. Entrepreneurship Theory and Practice, 38: 713-720.
194. Miller D., Shamsie J., 2001. Learning across the life cycle: Experimentation and performance among the Hollywood studio heads. Strategic Management Journal, 22: 725-745.
195. Miller D., Toulouse J., 1986. Chief executive personality and corporate strategy and structure in small firms. Management Science, 32: 1389-1409.
196. Milliken F. J., Lant T. K., 1991. The effects of an organization’s recent performance history on strategic persistence and change. Advances in Strategic Management, 7: 129-156.
197. Mintzberg H., 1979. The structuring of organizations: A synthesis of the research. Urbana, IL: University of Illinois at Urbana Champaign’s Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship.
198. Mishina Y., Dykes B. J., Block E. S., Pollock T. G., 2010. Why “good” firms do bad things: The effects of high aspirations, high expectations, and prominence on the incidence of corporate illegality. Academy of Management Journal, 53: 701-722.
199. Morrow J. L., Sirmon D. G., Hitt M. A., Holcomb T. R., 2007. Creating value in the face of declining performance: Firm strategies and organizational recovery. Strategic Management Journal, 28: 271-283.
200. Mousa F., Wales W., 2012. Founder effectiveness in leveraging entrepreneurial orientation. Management Decision, 50: 305-324.
201. Murphy K. J., 2012. Executive compensation: Where we are, and how we got there. In Constantinides G., Harris M., Stulz R., (Eds.), Handbook of the economics of finance: 211-356. Amsterdam: Elsevier Science North.
202. Nadkarni S., Barr P. S., 2008. Environmental context, managerial cognition, and strategic action: An integrated view. Strategic Management Journal, 29: 1395-1427.
203. Nadkarni S., Chen J., 2014. Bridging yesterday, today, and tomorrow: CEO temporal focus, environmental dynamism, and rate of new product introduction. Academy of Management Journal, 57: 1810-1833.
204. Nadkarni S., Herrmann P., 2010. CEO personality, strategic flexibility, and firm performance: The case of the Indian business process outsourcing industry. Academy of Management Journal, 53: 1050-1073.
205. Nadolska A., Barkema H. G., 2014. Good learners: How top management teams affect the success and frequency of acquisitions. Strategic Management Journal, 35: 1483-1507.
206. Nickel M. N., Rodriguez M. C., 2002. A review of research on the negative accounting relationship between risk and return: Bowman’s paradox. Omega, 30: 1-18.
207. O’Brien J. P., David P., 2014. Reciprocity and R&D search: Applying the behavioral theory of the firm to a communitarian context. Strategic Management Journal, 35: 550-565.
208. O’Connor J. P., Priem R. L., Coombs J. E., Gilley K. M., 2006. Do CEO stock options prevent or promote fraudulent financial reporting? Academy of Management Journal, 49: 483-500.
209. O’Reilly C., Snyder R., Boothe J., 1993. Effects of executive team demography on organizational change. In Huber G. P., Glick W. H., (Eds.), Organizational change and redesign: Ideas and insights for improving performance: 147-175. New York: Oxford University Press.
210. Pablo A. L., Sitkin S. B., Jemison D. B., 1996. Acquisition decision-making processes: The central role of risk. Journal of Management, 22: 723-746.
211. Palmer D., Barber B. M., 2001. Challengers, elites, and owning families: A social class theory of corporate acquisitions in the 1960s. Administrative Science Quarterly, 46: 87-120.
212. Palmer T. B., Wiseman R. M., 1999. Decoupling risk taking from income stream uncertainty: A holistic model of risk. Strategic Management Journal, 20: 1037-1062.
213. Park C., 2003. Prior performance characteristics of related and unrelated acquirers. Strategic Management Journal, 24: 471-480.
214. Park K. M., 2007. Antecedents of convergence and divergence in strategic positioning: The effects of performance and aspiration on the direction of strategic change. Organization Science, 18: 386-402.
215. Patel P. C., Chrisman J. J., 2014. Risk abatement as a strategy for R&D investments in family firms. Strategic Management Journal, 35: 617-627.
216. Pathak S., Hoskisson R. E., Johnson R. A., 2014. Settling up in CEO compensation: The impact of divestiture intensity and contextual factors in refocusing firms. Strategic Management Journal, 35: 1124-1143.
217. Pepper A., Gore J., 2015. Behavioral agency theory: New foundations for theorizing about executive compensation. Journal of Management, 41: 1045-1068.
218. Peterson R. S., Smith D. B., Martorana P. V., Owens P. D., 2003. The impact of chief executive officer personality on top management team dynamics: One mechanism by which leadership affects organizational performance. Journal of Applied Psychology, 88: 795-808.
219. Podsakoff P. M., Mackenzie S. B., Bachrach D. G., Podsakoff N. P., 2005. The influence of management journals in the 1980s and 1990s. Strategic Management Journal, 26: 473-488.
220. Priem R. L., Lyon D. W., Dess G. G., 1999. Inherent limitations of demographic proxies in top management team heterogeneity research. Journal of Management, 25: 935-953.
221. Quigley T. J., Hambrick D. C., 2012. When the former CEO stays on as board chair: Effects on successor discretion, strategic change, and performance. Strategic Management Journal, 33: 834-859.
222. Quigley T. J., Hambrick D. C., 2015. Has the “CEO effect” increased in recent decades? A new explanation for the great rise in America’s attention to corporate leaders. Strategic Management Journal, 36: 821-830.
223. Rau P. R., Xu J., 2013. How do ex ante severance pay contracts fit into optimal executive incentive schemes? Journal of Accounting Research, 51: 631-671.
224. Rediker K. J., Seth A., 1995. Boards of directors and substitution effects of alternative governance mechanisms. Strategic Management Journal, 16: 85-99.
225. Reuber A. R., Fischer E., 1997. The influence of the management team’s international experience on the internationalization behaviors of SMEs. Journal of International Business Studies, 28: 807-825.
226. Roll R., 1986. The hubris hypothesis of corporate takeovers. Journal of Business, 59: 197-216.
227. Ross J., Staw B. M., 1986. Expo 86: An escalation prototype. Administrative Science Quarterly, 31: 274-279.
228. Ruefli T. W., Collins J. M., LaCugna J. R., 1999. Risk measures in strategic management research: Auld Lang Syne? Strategic Management Journal, 20: 167-194.
229. Russo J. E., Schoemaker P. J., 1992. Managing overconfidence. Sloan Management Review, 33: 7-17.
230. Sambharya R. B., 1996. Foreign experience of top management teams and international diversification strategies of U.S. multinational corporations. Strategic Management Journal, 17: 739-746.
231. Sanders W. G., 2001. Behavioral responses of CEOs to stock ownership and stock option pay. Academy of Management Journal, 44: 477-492.
232. Sanders W. G., Hambrick D. C., 2007. Swinging for the fences: The effects of CEO stock options on company risk taking and performance. Academy of Management Journal, 50: 1055-1078.
233. Schulze W. S., Kellermanns F. W., 2015. Reifying socioemotional wealth. Entrepreneurship Theory and Practice, 39: 447-459.
234. Schulze W. S., Lubatkin M. H., Dino R. N., 2003. Exploring the agency consequences of ownership dispersion among the directors of private family firms. Academy of Management Journal, 46: 179-194.
235. Seo J., Gamache D. L., Devers C. E., Carpenter M. A., 2014. The role of CEO relative standing in acquisition behavior and CEO pay. Strategic Management Journal, 36: 1877-1894.
236. Shi W., Connelly B. L., Hoskisson R. E., in press. External corporate governance and financial fraud: Cognitive evaluation theory insights on agency theory prescriptions. Strategic Management Journal.
237. Shi W., Hoskisson R. E., Zhang Y. A., 2016. Independent director death and CEO acquisitiveness: Build an empire or pursue a quiet life? Strategic Management Journal. doi:10.1002/smj.2514
238. Shimizu K., 2007. Prospect theory, behavioral theory, and the threat-rigidity thesis: Combinative effects on organizational decisions to divest formerly acquired units. Academy of Management Journal, 50: 1495-1514.
239. Siepel J., Nightingale P., 2014. Anglo-Saxon governance: Similarities, difference and outcomes in a financialised world. Critical Perspectives on Accounting, 25: 27-35.
240. Simon H. A., 1957. Models of man. New York: John Wiley.
241. Simon M., Houghton S. M., 2003. The relationship between overconfidence and the introduction of risky products: Evidence from a field study. Academy of Management Journal, 46: 139-149.
242. Simon M., Houghton S. M., Savelli S., 2003. Out of the frying pan … ? Why small business managers introduce high-risk products. Journal of Business Venturing, 18: 419-440.
243. Simsek Z., Heavey C., Veiga J. F., 2010. The impact of CEO core self-evaluation on the firm’s entrepreneurial orientation. Strategic Management Journal, 31: 110-119.
244. Singh J. V., 1986. Performance, slack, and risk taking in organizational decision making. Academy of Management Journal, 29: 562-585.
245. Sitkin S. B., Pablo A. L., 1992. Reconceptualizing the determinants of risk behavior. Academy of Management Review, 17: 9-38.
246. Sitkin S. B., See K. E., Miller C. C., Lawless M. W., Carton A. M., 2011. The paradox of stretch goals: Organizations in pursuit of the seemingly impossible. Academy of Management Review, 36: 544-566.
247. Smith R. H., Kim S. H., 2007. Comprehending envy. Psychological Bulletin, 133: 46-64.
248. Song J. H., 1982. Diversification strategies and the experience of top executives of large firms. Strategic Management Journal, 3: 377-380.
249. Souder D., Shaver J. M., 2010. Constraints and incentives for making long horizon corporate investments. Strategic Management Journal, 31: 1316-1336.
250. Souder D., Simsek Z., Johnson S. G., 2012. The differing effects of agent and founder CEOs on the firm’s market expansion. Strategic Management Journal, 33: 23-41.
251. Staw B. M., 1981. The escalation of commitment to a course of action. Academy of Management Review, 6: 577-587.
252. Staw B. M., Sandelands L. E., Dutton J. E., 1981. Threat-rigidity effects in organizational behavior: A multilevel analysis. Administrative Science Quarterly, 26: 501-524.
253. Strandholm K., Kumar K., Subramanian R., 2004. Examining the interrelationships among perceived environmental change, strategic response, managerial characteristics, and organizational performance. Journal of Business Research, 57: 58-68.
254. Tang J., Crossan M., Rowe W. G., 2011. Dominant CEO, deviant strategy, and extreme performance: The moderating role of a powerful board. Journal of Management Studies, 48: 1479-1503.
255. Tang Y., Li J., Yang H., 2015. What I see, what I do: How executive hubris affects firm innovation. Journal of Management, 41: 1698-1723.
256. Thaler R. H., Johnson E. J., 1990. Gambling with the house money and trying to break even: The effects of prior outcomes on risky choice. Management Science, 36: 643-660.
257. Thomas A. S., Litschert R. J., Ramaswamy K., 1991. The performance impact of strategy-manager coalignment: An empirical examination. Strategic Management Journal, 12: 509-522.
258. Tihanyi L., Ellstrand A. E., Daily C. M., Dalton D. R., 2000. Composition of the top management team and firm international diversification. Journal of Management, 26: 1157-1177.
259. Tihanyi L., Graffin S., George G., 2014. Rethinking governance in management research. Academy of Management Journal, 57: 1535-1543.
260. Tranfield D., Denyer D., Smart P., 2003. Towards a methodology for developing evidence-informed management knowledge by means of a systematic review. British Journal of Management, 14: 207-222.
261. Troy C., Smith K. G., Domino M. A., 2011. CEO demographics and accounting fraud: Who is more likely to rationalize illegal acts? Strategic Organization, 9: 259-282.
262. Tuggle C. S., Sirmon D. G., Reutzel C. R., Bierman L., 2010. Commanding board of director attention: Investigating how organizational performance and CEO duality affect board members’ attention to monitoring. Strategic Management Journal, 31: 946-968.
263. Tushman M. L., Virany B., Romanelli E., 1985. Executive succession, strategic reorientations, and organization evolution: The minicomputer industry as a case in point. Technology in Society, 7: 297-313.
264. van Essen M., Otten J., Carberry E. J., 2015. Assessing managerial power theory: A meta-analytic approach to understanding the determinants of CEO compensation. Journal of Management, 41: 164-202.
265. Villena V. H., Gómez-Mejía L. R., Revilla E., 2009. The decision of the supply chain executive to support or impede supply chain integration: A multidisciplinary behavioral agency perspective. Decision Sciences, 40: 635-665.
266. Vissa B., Greve H. R., Chen W., 2010. Business group affiliation and firm search behavior in India: Responsiveness and focus of attention. Organization Science, 21: 696-712.
267. Wangrow D. B., Schepker D. J., Barker V. L., 2015. Managerial discretion: An empirical review and focus on future research directions. Journal of Management, 41: 99-135.
268. West M. A., Anderson N. R., 1996. Innovation in top management teams. Journal of Applied Psychology, 81: 680-693.
269. Westphal J. D., 1999. Collaboration in the boardroom: Behavioral and performance consequences of CEO-board social ties. Academy of Management Journal, 42: 7-24.
270. Whyte G., 1986. Escalating commitment to a course of action: A reinterpretation. Academy of Management Review, 11: 311-321.
271. Wiersema M. F., Bantel K. A., 1992. Top management team demography and corporate strategic change. Academy of Management Journal, 35: 91-121.
272. Wiseman R. M., Cuevas-Rodríguez G., Gomez-Mejia L. R., 2012. Towards a social theory of agency. Journal of Management Studies, 49: 202-222.
273. Wiseman R. M., Gómez-Mejía L. R., 1998. A behavioral agency model of managerial risk taking. Academy of Management Review, 23: 133-153.
274. Wowak A. J., Hambrick D. C., 2010. A model of person-pay interaction: How executives vary in their responses to compensation arrangements. Strategic Management Journal, 31: 803-821.
275. Wu S., Levitas E., Priem R. L., 2005. CEO tenure and company invention under differing levels of technological dynamism. Academy of Management Journal, 48: 859-873.
276. Zahra S. A., 1996. Governance, ownership, and corporate entrepreneurship: The moderating impact of industry technological opportunities. Academy of Management Journal, 39: 1713-1735.
277. Zellweger T., Kellermanns F. W., Chrisman J. J., Chua J., 2012. Family control and family firm valuation by family CEOs: The importance of intentions for transgenerational control. Organization Science, 23: 851-868.
278. Zhang X., Bartol K. M., Smith K. G., Pfarrer M. D., Khanin D. M., 2008. CEOs on the edge: Earnings manipulation and stock-based incentive misalignment. Academy of Management Journal, 51: 241-258.
279. Zhang Y., 2006. The presence of a separate coo/president and its impact on strategic change and CEO dismissal. Strategic Management Journal, 27: 283-300.