The Impact of Entrepreneurial Spirit on Corporate Risk-taking Levels

Characterized by innovativeness and proactiveness, entrepreneurial spirit has consistently served as a key driving force behind China’s economic transformation, directly influencing the level of corporate risk-taking. However, the intrinsic link between entrepreneurial spirit and corporate risk-taking has not yet been fully revealed. Drawing on a sample of 12,636 firm-year observations from A-share listed companies on the Shanghai and Shenzhen stock exchanges over the period from 2014 to 2023, this study investigates the impact of entrepreneurial spirit on corporate risk-taking behavior, as well as the moderating role of internal control effectiveness in this relationship. Empirical results indicate that a higher level of entrepreneurship is associated with a stronger propensity for corporate risk-taking, and that robust internal controls can moderate the positive effect of entrepreneurial spirit on risk-taking behavior. Further analysis reveals that innovation capability, entrepreneurial spirit, and entrepreneurial talent are key factors driving this effect. This association is particularly pronounced in state-owned enterprises (SOEs), where higher entrepreneurial levels correspond to greater risk-taking propensities, and also in the manufacturing sector, where innovation-intensive strategies exacerbate corporate risk exposure. By constructing and quantifying a comprehensive evaluation system for entrepreneurial spirit, this study not only enriches the theoretical framework in the fields of entrepreneurship, innovation intensity, and risk management, but also provides both theoretical and practical implications for policymakers and enterprises seeking to promote innovation-driven sustainable development.