The Determinants of Operational Risk on the Firm and CEO Characteristics in Industrial Firms
Other Title
公司與經理人特質對作業風險發生頻率之影響
Journal
管理學報
Journal Volume
35
Journal Issue
2
Pages
159-188
Date Issued
2018
Author(s)
Abstract
This study investigates the incidence of operational risk events in the U.S. industrial firms during the period 1980 to 2012. We discuss them from the two aspects of firm and chief executive officer (CEO) characteristics. We find that firms that are complex, with high accounting risk, and with weak internal corporate governance tend to suffer operational losses; yet the influence on external corporate governance is not significant. We also find that firms experiencing operational losses tend to be firms have CEOs with high equity incentives, young age, and short tenure. Overall, we show that the two most crucial determinants for the occurrence of operational losses are high accounting risk and poor internal corporate governance mechanism. These results provide new insight about operational risk management for industrial firms.
Subjects
作業風險
公司特質
公司治理
經理人特質
Publisher
社團法人中華民國管理科學學會
Type
journal article