Thinking of peace when rich:The effect of industry growth on corporate risk-taking

作     者：Xiangting Kong Jinsong Tan Jingxin Zhang 

作者机构：Sun Yat-sen UniversitySchool of BusinessGuangzhouGuangdongChina South China Agricultural UniversityCollege of Economics and ManagementGuangzhouGuangdongChina Sun Yat-sen UniversityCenter for Accounting Finance and InstitutionsGuangzhouGuangdongChina 

出 版 物：《China Journal of Accounting Research》 (中国会计学刊（英文版）)

年 卷 期：2022年第15卷第2期

页      面：25-49页

学科分类：12[管理学] 1202[管理学-工商管理] 1201[管理学-管理科学与工程(可授管理学、工学学位)] 

基　　金：the financial support of the National Natural Science Foundation of China(Grant No.71972189,71902201,71790603) the National Office for Philosophy and Social Science(Grant No.19FGLB048) the Natural Science Foundation of Guangdong Province(Grant No.2018A0303130328) the Guangdong Planning Office of Philosophy and Social Science(Grant No.GD18CYJ09) 

主　　题：Industry growth Risk-taking Prospect theory Corporate policies 

摘      要：We investigate the unique role and mechanisms of industry growth in firms’risk-taking *** find that industry growth is negatively associated with corporate risk-taking,consistent with the prospect theory that a high-growth industry gives firms a superior external environment,which may cause them to refrain from corporate risk-taking as in the saying“thinking of peace when rich.This correlation is stronger for product market leaders,industries encouraged by industry policies and industries that receive more government *** reduce risk-taking through various corporate policies,including long-term,high-value investments,operational efficiency and cash holdings in response to high industry ***,our results are consistent with industry growth negatively affecting corporate risk-taking.