Investor Protection, Growth Opportunity and Risk Taking

투자자보호가 기업의 위험선호에 미치는 영향

  • Received : 2010.04.20
  • Accepted : 2010.06.14
  • Published : 2010.06.30


This study aims to empirically verify that the effect of investor protection on risk taking may differ according to growth opportunities. Furthermore, this paper intends to verify the hypothesis that the impact of risk taking upon corporate value will also be influenced by growth opportunities. The results of the analysis show that firms with high growth opportunities demonstrate greater risk taking as investor protection gets stronger while the degree of investor protection has little or no impact on their risk taking in case of firms suffering a lack of growth opportunities. In addition, risk taking has a statistically significant positive impact on improving corporate value for firms with sufficient growth opportunities, in contrast the impact is little or none when firms lack growth opportunities.