Quantitative analysis shows CEO power and confidence positively affect corporate risk-taking, suggesting influential traits.
This paper aims to capture the impact of CEO characteristics on corporate risk-taking behaviour in the emerging stock market, namely the Saudi market, by analyzing data from 43 firms listed in TADAWUL from 2016 to 2024 using a quantitative method through two statistical models to examine how a CEO’s power, tenure, and confidence influence risk-taking behaviour from accounting and market-wise perspectives. Results reveal that CEO power and CEO confidence show significantly positive coefficient impacts on market-wise corporate risk-taking. In contrast, CEO tenure has no impact on market-wise corporate risk-taking. In addition, CEO power and CEO confidence show an insignificant coefficient impact on accounting corporate risk-taking. In contrast, CEO tenure has a significant N-shaped curve in accounting for corporate risk-taking. The findings contribute to the existing accounting literature by providing new evidence from Saudi Arabia and provide insights into the influence of CEOs' attributes in shaping a firm’s risk-taking behaviour from two perspectives.
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Mahfod Aldoseri (2025) studied this question.
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