Interactions of Financial Risk Tolerance, Internal Fit, External Fit and Personality Traits on Corporate Investment Behaviour

Authors : Cem ÜNLÜAKIN, Hakkı AKTAŞ
Pages : 375-398
Doi:10.18037/ausbd.1221129
View : 240 | Download : 132
Publication Date : 2023-07-04
Article Type : Research Paper
Abstract :Explaining corporate investment behaviour insert ignore into journalissuearticles values(CIB); is crucial for companies, investors and policy makers. The relationship between financial risk taking and investment decision has been studied in detail on an individual level. However, an attempt to assess financial risk taking behaviour on an organizational level is not encountered in literature. This study fills the gap by attempting to measure corporate financial risk tolerance insert ignore into journalissuearticles values(CFRT); with data from 307 production companies and employs hypothesis testing as a confirmatory analysis in a theoretical framework from literature. The dynamics of Big 5 personality traits of owners/top management, such as openness, conscientiousness, extroversion, agreeableness, neuroticism, which is another area of interest in investment theory, is also included in the study. The models to test the hypotheses are proposed by using CFRT and Big 5 as independent variables to explain corporate investment behaviour insert ignore into journalissuearticles values(CIB);. The results of this study indicate that Big 5 traits of top management are not significantly related with CIB, yet CFRT is. Subsequently items impacting CIB and financial risk tolerance identified from literature are classified as internal insert ignore into journalissuearticles values(IFFI); and external fit for investment insert ignore into journalissuearticles values(EFFI); and are incorporated as two composite moderating variables. As a result, the model fit improves with both IFFI and EFFI for CFRT, however for Big 5, only conscientiousness trait becomes significant in the moderation of EFFI.
Keywords : Kurumsal Yatırım Davranışı, Kurumsal Finansal Risk Toleransı, Yatırım İçin Dahili Uygunluk, Yatırım İçin Harici Uygunluk, Üst Yönetimin Kişilik Özellikleri

ORIGINAL ARTICLE URL