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- Publisher Website: 10.5465/amj.2016.0749
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Article: Deviant versus Aspirational Risk Taking: The Effects of Performance Feedback on Bribery Expenditure and R&D Intensity
Title | Deviant versus Aspirational Risk Taking: The Effects of Performance Feedback on Bribery Expenditure and R&D Intensity |
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Authors | |
Keywords | behavioral decision theory corporate corruption panel/pooled |
Issue Date | 2019 |
Publisher | Academy of Management. The Journal's web site is located at http://www.aom.pace.edu/amjnew |
Citation | Academy of Management Journal, 2019, v. 62 n. 4, p. 1226-1251 How to Cite? |
Abstract | Combining the theses of “problemistic search” and “slack search,” past research in the behavioral theory of the firm suggests that both low- and high-performing firms may engage in the same type of risk-taking activity. We counter this view with a consistent, motivation-based logic in the theory: low-performing firms are fixated on finding short-term solutions to immediate problems, so they have an increased probability of exhibiting deviant risk-taking behavior such as bribery, whereas high-performing firms are concerned about sustaining their competitive advantage in the long run and will more likely engage in aspirational risk taking such as research and development (R&D). Using a sample of 9,633 firm-year observations covering 2,224 listed companies in China, we find that, as a firm’s performance falls further below its aspiration level, it has larger abnormal entertainment spending, an implicit measure of bribery expenditure, but not higher R&D intensity. However, as a firm’s performance rises further above its aspiration level, it has greater R&D intensity, but not more bribery expenses. Legal development and industry competition moderate the relationship between performance feedback and risk-taking behavior. |
Persistent Identifier | http://hdl.handle.net/10722/279009 |
ISSN | 2023 Impact Factor: 9.5 2023 SCImago Journal Rankings: 8.271 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Xu, D | - |
dc.contributor.author | Zhou, KZ | - |
dc.contributor.author | Du, FEI | - |
dc.date.accessioned | 2019-10-21T02:17:57Z | - |
dc.date.available | 2019-10-21T02:17:57Z | - |
dc.date.issued | 2019 | - |
dc.identifier.citation | Academy of Management Journal, 2019, v. 62 n. 4, p. 1226-1251 | - |
dc.identifier.issn | 0001-4273 | - |
dc.identifier.uri | http://hdl.handle.net/10722/279009 | - |
dc.description.abstract | Combining the theses of “problemistic search” and “slack search,” past research in the behavioral theory of the firm suggests that both low- and high-performing firms may engage in the same type of risk-taking activity. We counter this view with a consistent, motivation-based logic in the theory: low-performing firms are fixated on finding short-term solutions to immediate problems, so they have an increased probability of exhibiting deviant risk-taking behavior such as bribery, whereas high-performing firms are concerned about sustaining their competitive advantage in the long run and will more likely engage in aspirational risk taking such as research and development (R&D). Using a sample of 9,633 firm-year observations covering 2,224 listed companies in China, we find that, as a firm’s performance falls further below its aspiration level, it has larger abnormal entertainment spending, an implicit measure of bribery expenditure, but not higher R&D intensity. However, as a firm’s performance rises further above its aspiration level, it has greater R&D intensity, but not more bribery expenses. Legal development and industry competition moderate the relationship between performance feedback and risk-taking behavior. | - |
dc.language | eng | - |
dc.publisher | Academy of Management. The Journal's web site is located at http://www.aom.pace.edu/amjnew | - |
dc.relation.ispartof | Academy of Management Journal | - |
dc.subject | behavioral decision theory | - |
dc.subject | corporate corruption | - |
dc.subject | panel/pooled | - |
dc.title | Deviant versus Aspirational Risk Taking: The Effects of Performance Feedback on Bribery Expenditure and R&D Intensity | - |
dc.type | Article | - |
dc.identifier.email | Zhou, KZ: kevinzhou@business.hku.hk | - |
dc.identifier.authority | Zhou, KZ=rp01127 | - |
dc.description.nature | published_or_final_version | - |
dc.identifier.doi | 10.5465/amj.2016.0749 | - |
dc.identifier.scopus | eid_2-s2.0-85064805006 | - |
dc.identifier.hkuros | 308072 | - |
dc.identifier.volume | 62 | - |
dc.identifier.issue | 4 | - |
dc.identifier.spage | 1226 | - |
dc.identifier.epage | 1251 | - |
dc.identifier.isi | WOS:000482206400011 | - |
dc.publisher.place | United States | - |
dc.identifier.issnl | 0001-4273 | - |