TY - JOUR ID - 107048 TI - The Impact of Market Inefficiency and Environmental Uncert`ainty on CEO Risk-Taking Incentives JO - Iranian Journal of Finance JA - IJF LA - en SN - 2676-6337 AU - Rashidi, Mohsen AD - Assistant Prof., Department of Accounting, Faculty of Economics and Administrative Sciences, Lorestan University, Iran. Y1 - 2019 PY - 2019 VL - 3 IS - 3 SP - 19 EP - 34 KW - Market inefficiency KW - Environment Uncertainty KW - CEO risk taking DO - 10.22034/ijf.2020.204206.1076 N2 - This study investigates the effect of market inefficiency and environmental uncertainty on CEO risk taking. Prior research, however, have struggled to establish this relation empirically; moreover, some evidence points to the possibility that the CEO risk appetite is lower for firms active in inefficient markets. The opportunistic approach of managers leads to decisions about personal interests and imposing costs on shareholders by decreasing risk taking. In order to investigate the issue, data on companies listed in Tehran Stock Exchange, from 2008 to 2018, were extracted and a panel regression model was used to test the research hypotheses. Consistent with expected relation between market inefficiency, environmental uncertainty and CEO risk taking, the managers' risk taking decreases with respect to market inefficiency and environmental uncertainty. Managers may benefit from increased fluctuations in risk orientation, but are more sensitive than shareholders and have less restrictive choice that avoids higher risk. UR - https://www.ijfifsa.ir/article_107048.html L1 - https://www.ijfifsa.ir/article_107048_aaeb905ead1b705f33594fd53f3a4ae1.pdf ER -