Policy Burden, Industry Competition, and Corporate Risk-Taking

Abstract

This paper takes the data of Shanghai and Shenzhen A-share-listed companies from 2009 to 2016 as the research sample to test whether the policy burden will affect corporate risk-taking and the regulating effect of industry competition. The results show that: First, policy burden has a significant negative effect on corporate risk-taking. Second, industry competition reduces the negative impact of policy burden on corporate risk-taking. After subdividing the policy burden into social burden and strategic burden, it is found that the industry competition weakens the relationship between social burden and corporate risk-taking, but the regulating effect is not significant between strategic burden and corporate risk-taking.