TMT's Risk Tolerance,Corporate Entrepreneurship and Firm Value: An Empirical Analysis Based on Main-board Listed Companies in China

With respective construction of top management team's risk tolerance proxy and corporate entrepreneurship proxies, this paper tests and confirms the relation between TMT's risk preference and corporate entrepreneurship and their dynamic effect on firm value from the perspective of corporate entrepreneurship by taking 2006-2013 main-board listed companies in China as the sample. This study shows that: there is significantly negative correlation between firm value and TMT's risk tolerance; the less TMT's risk-aversion is, the more likely firm engages in business venture; although corporate entrepreneurial activities have become effective ways for enterprises to achieve "value creation", including innovation, self-renewal and proactiveness, listed companies in China do not pay enough attention to it.