Details

Autor(en) / Beteiligte

• 陳聖賢(Sheng-Syan Chen)
• 何耕宇(Keng-Yu Ho)
• 何柏欣(Po-Hsin Ho)
• 聶瑋瑩(Wei-Ying Nie)

Titel

The Determinants of Operational Risk on the Firm and CEO Characteristics in Industrial Firms

Ist Teil von

• 管理學報, 2018-06, Vol.35 (2), p.159-188

Ort / Verlag

台灣: 社團法人中華民國管理科學學會

Erscheinungsjahr

2018

Quelle

Business Source Ultimate【Trial: -2024/12/31】【Remote access available】

Beschreibungen/Notizen

• 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.