The first chapter explores the extent to which campaign contributions to politicians in the financial sector can influence the economic performance of the banks. In this paper, I study the relationship between campaign contribution, probability of failure and portfolio investment. I find that there is a significant effect of campaign contributions on the probability of failure and riskier investment portfolio using U.S. state banks. This effect is more pronounced for smaller and less geographically diversified banks. The results are robust for the overall risk taking measure ($Z-score$ and volatility of the return). The result is also robust using the magnitude of contributions. Using bivariate model and Blundell-Bond estimate to control for endogeneity of campaign contributions, I find that the results are robust. Using US legislative data on congressmen from congress.gov, the second chapter (co-authored with Aggey Semenov) investigates the effect of U.S. Congress legislators' non roll--call activity in bill sponsorship and co--sponsorship on campaign contributions from the financial industry. We found that bill sponsorship has positive and significant effect on campaign contributions in both Chambers. Co--sponsorship has positive and significant effect on contributions in the House but not in the Senate. We link this observation to a longer term of senators compare to congressmen; senators have more time to engage in more profitable sponsorship than congressmen. Legislators' efficiency in promoting bills to laws is rewarded by the financial industry. We also conduct robustness checks. Motivated by a large literature on the determinants of Foreign Direct Investment (FDI), the third chapter (co-authored with Roland Pongou) is assigned to understand whether a leader's longevity in office promotes FDI inflows? We answer this question with a novel dataset on the personal characteristics of African leaders covering the period from 1960 to 2011. We find that political longevity increases FDI inflows. The effect is robust to controlling for leader heterogeneity using leader fixed effects. The results remain unchanged when using plausible instrumental variables for political longevity to address possible endogeneity issues, and when estimating a dynamic model. Importantly, the effect of longevity on FDI inflows is only positive for more democratic regimes. Exploring the mechanism, we find that longevity of leaders improves the rule of laws, bureaucracy, property rights, and infrastructure, and reduces corruption. We also find that unobserved characteristics of leaders such as his ability play a role in its longevity and the improvement of institutions.

This thesis examines the multiple meanings attached to risk by a small group of climbers based in the North of England. The study is anchored, empirically in sustained observational fieldwork, and in-depth interviews with adult subjects (9 females aged 22-77, 14 males aged 20-70). In completing this thesis, I believe I have made an original contribution to knowledge in three areas. In re-imagining risk in climbing, I argue that climbers do not participate in climbing because of a desire to take risks, rather, they make every effort to assess, manage and control risks when climbing. In reconceptualising risk in climbing, I present a conceptual model derived from the interviewees’ accounts of risk. This model situates risk in climbing with risk in everyday life. The basis of my third original contribution to knowledge lies in the relationship between risk and identity. The interviewees differentiated between safe and unsafe climbers through reference to embodied climbing practices. The way a climber in this study assessed and managed risk marked them as a safe climber or conversely an unsafe climber. Furthermore, the data revealed both a gendered and an age-related dimension to the relationship between risk and identity. The desire to retain the identity of a climber over time was so strong that older climbers reported modifying their practices to sustain their status as a member of the insider group. In addition, the female interviewees described how perceived family responsibilities mediated membership of the insider group, and their identity as a safe and qualified climber. The female climbers in this study described how such responsibilities led them, like older climbers, to draw back from the edge. These findings have implications beyond the sport of rock climbing and its participants. This research has the potential to inform and enhance our appreciation of risk in other lifestyle sports and moreover, whilst there is a tendency to distinguish between lifestyle and traditional sports, there may be some application of the account of risk presented here to an exploration of risk in traditional sports. The arguments presented in this study also contribute to an understanding or risk more generally. A key conclusion from this study is that risk is best understood where the meanings attached to it are derived from individuals’ everyday lived experience and relatedly where risk is situated within the broadest context of their lives. Finally, the data reported here suggests that risk activities and risk-taking should be explored in relation to an individual’s perceived identity and crucially, the significance of risk for the construction of that identity.

In this thesis, we use a wide cross-sectional sample of both privately held and publicly listed European banks over the period 1999 to 2008 to analyse the role played by bank shareholder incentives in the performance of banks and, ultimately, on the capital allocation efficiency of the economy as a whole. In our first essay, we use the entire range of Bankscope and Amadeus Top 250,000 to construct the portfolios of shareholders who hold equity stakes in banks for each year. We show that about 62 per cent of the ultimate largest shareholders of banks are diversified investors, holding on average equity investments from thirteen companies in their portfolio. We exploit this heterogeneity to investigate the impact of their portfolio diversification on bank risk-taking. Our results show that the relationship between portfolio diversification and bank risk-taking is both statistically significant and economically sizeable. Overall, these findings contribute to the literature by providing novel evidence on the characteristics of bank shareholders’ portfolios and by studying an explicit channel through which shareholders’ incentives for risk-taking affect the banks’ risk. In our second essay, we build on our previous evidence to further investigate whether the level of diversification of bank shareholders has any effect on the efficiency of capital allocation in the economy. We aggregate our data at regional level, using information on the address where companies and banks have their headquarters and identify regions based on Eurostat Nomenclature of Territorial Units for Statistics (NUTS) definitions. Our results indicate that capital appears to be allocated more efficiently in regions where banks are controlled by (more) diversified shareholders. In particular, a change in value-added growth increases capital investment by approximately 8 per cent of its mean in regions where banks are controlled by undiversified shareholders, while it increases capital investment by almost 21 per cent in regions where banks are controlled by shareholders with diversified portfolios. These findings contribute to the literature by studying a specific novel channel through which financial development, in the form of bank shareholders’ diversification, affects the real economy. Lastly, in our third essay we combine our detailed micro-level data on ownership with commercial loans market data from Dealscan to evaluate evidence of related lending in Western European banks. In doing so, we are able to explicitly identify related loans and provide original evidence of related lending and preferential lending terms. We show that 14 per cent of banks in our sample engage in related lending, and that firms borrowing from their related banks have lower costs and higher access to credit. Given these findings, we then proceed to analyse the effect of related lending in bank performance. Our tests show that banks participating in related lending experience an increase in average returns of 11 per cent. Results are both statistically significant and economically sizeable. Overall, our findings contribute to the literature by providing evidence in support the information asymmetry view of related lending, suggesting that in countries with strong rule of law related lending may become a relevant mechanism for informational capital accumulation for banks, allowing them to make more profitable lending decisions.

We investigate the roles of (1) social capital and (2) firm type (formal versus informal) in shaping the relationship between entrepreneurial behavior and firm performance. To further investigate entrepreneurial behavior and its effect on firm performance, we develop two research themes based on two types of entrepreneurial behaviors - assertive behavior and nonassertive behavior. The first research theme focuses on the relationship between entrepreneurs' assertive behavior and firm performance. Taking entrepreneurs' risk-taking behavior as an assertive behavior into account, we identify the conditions under with entrepreneurs' risk-taking behavior results in better firm performance. In Model 1 (detailed in Chapter 2), we investigate whether and how firm type and social capital influence entrepreneurs' risk-taking behavior and its effect on firm performance. Through a field study covering 300 entrepreneurs and the same number of employees, we found that firm type and social capital moderate the relationship between entrepreneurs'risk-taking behavior and firm performance. We further found that entrepreneurs' risk-taking behavior is only beneficial for the firm if entrepreneurs have more social capital in their formal firms. The second research theme focuses on the relationship between entrepreneurs' humility as a nonassertive behavior and firm performance. In Model 2 (detailed in Chapter 3), we conceptualize and investigate the relationship between entrepreneurs' humility and firm performance via social capital in different firm types. Through the same field study, we found that social capital mediates the relationship between entrepreneurs' humility and firm performance. We further found that the indirect effect of entrepreneurs'humility on firm performance via social capital is stronger in informal firms. The theoretical and practical implications of the two studies are then discussed.

Compensation structures with relatively high levels of contingent pay encouraged managers to engage in excessive risk-taking behavior at financial institutions, which contributed to the global financial crisis of 2008. The purpose of this study, guided by the theory of the firm, was to explore compensation strategies that some executives in Uganda used to support effective risk-management practices. This multiple case study was an in-depth inquiry into compensation strategies that encouraged prudent risk-taking behavior. The target population comprised 5 risk-management executives from 5 separate commercial banks who had successfully implemented compensation strategies that supported risk management practices. Data were collected through semistructured interviews and a review of company documents. Data were analyzed using Yin’s approach and involved data coding, sorting, filtering, identifying relationships, confirming and linking emerging themes to the research question. Methodological triangulation and member checking were applied to ensure the credibility, validity, accuracy, and transferability of the results. Four themes emerged from data analysis: compensation challenges, financial and nonfinancial compensation, the effectiveness of compensation, and effective implementation of compensation strategies. The findings from the study may contribute to positive social change by driving the adoption of compensation strategies that motivate leaders to focus on the long-term objectives of the firm, including investing in socially responsive projects that improve the welfare of the communities in which the banks operate.

El presente trabajo de investigación, consiste en determinar la personalidad en la gestión de los ejecutivos de mando medio en el sector empresarial, basados en el análisis del riesgo en la toma de decisiones. Se analizó a los ejecutivos de mando medio, ya que cuentan con autonomía para la toma de decisiones que impactaran directamente en el destino de la organización. El problema de investigación fue analizar la relación directa entre los rasgos de personalidad y el riesgo en la toma de decisiones ( asunción o aversión al riesgo) , orientados a la gestión y rendimiento empresarial de un ejecutivo de mando medio. Dicho análisis, ayudará a las organizaciones a implementar los rasgos de personalidad dentro del perfil laboral en el proceso de selección de personal. Se analizaron cuatro criterios: (i) Existe una relación directa entre los rasgos de personalidad y el riesgo en la toma de decisiones, (ii) Los rasgos de personalidad de los ejecutivos del mando medio orientados a su gestión y rendimiento en el sector empresarial, (iii) Existen diferentes investigaciones como el indicador tipo Myers-Briggs que nos permite identificar los rasgos de personalidad más importantes y por ultimo (iv) Demostrar la relevancia de los rasgos de personalidad que tienen los ejecutivos de mando medio en su gestión empresarial. Nuestra investigación pretende recomendar la implementación de un perfil laboral (rasgos de personalidad) más idóneo con los rasgos de personalidad de los ejecutivos de mando medio que aseguren un buen clima laboral dentro de la organización. / The present research work, consists of determining the personality in the management of middle management executives in the business sector, based on risk analysis in decision making. Mid-level executives were analyzed, as they have autonomy to make decisions that directly impact the destiny of the organization. The research problem was to analyze the direct relationship between personality traits and risk in decision making (assumption or aversion to risk), aimed at the management and business performance of a middle management executive. This analysis will help organizations to implement personality traits within the work profile in the personnel selection process. Four criteria were analyzed: (i) There is a direct relationship between personality traits and risk in decision-making, (ii) The personality traits of middle management executives oriented to their management and performance in the business sector, (iii) There are different researches such as the Myers-Briggs type indicator that allows us to identify the most important personality traits and finally (iv) Demonstrate the relevance of the personality traits that middle management executives have in their business management. Our research aims to recommend the implementation of a profile (personality traits) best suited to the personality traits of middle management executives that ensure a good working environment within the organization. / Trabajo de Suficiencia Profesional

In cognitive entrepreneurship research one main question is: Do entrepreneurs think differently than others in various ways? Especially in the area of risk perception cognition is thought of as information processing. In later streams of cognitive science it has developed from a state where cognition is seen as information processing to a state where cognition is mainly seen as an effective act, where experiences play an important role. We use risk perception as an indicator for information processing and self perception as an indicator for past experience. We found that past experience explains starting a real venture whereas risk information processing explains starting a case study venture.

Background Nowadays the amount of research regarding the family business context has improved meaningfully. However, the field of family business could still be considered immature and with existing gaps in its literature. Thereby, several studies in the family business context have discussed the topic of risk-taking, which establishes its crucial importance as a topic within in the field. Thus, risk-taking is a topic of the utmost importance for any given organization in terms of growth regardless if it is a family firm or non-family firm. However, in order to enact such levels of growth, the firms’ CEOs are required to engage in managerial risk-taking behaviors. Here, managerial risktaking is explained through the lens of the upper echelons theory which aids to understand the different perspectives (e.g., age, tenure, education and prior work experiences) CEOs utilize to take risk in their daily activities. Purpose Through the identified fundamental experiences affecting the managerial risk-taking behaviors of CEOs, the purpose of this thesis, through the lens of the upper-echelons theory, is to research how CEOs experiences influence their managerial risk-taking behaviors inside family businesses. Method This thesis followed a quantitative research approach, by analyzing a sample of 100 family firms and their CEOs across Scandinavia. Here, the data was collected via the public database “Amadeus” and complemented with supporting sources such as “LinkedIn” and companies’ websites. Lastly, multiple statistical tests were performed to further asses and explore the collected data. Findings The final results of this thesis were unable to determine to what degree the independent variables of CEOs’ experiences (age, tenure, education and prior work experiences) influence the dependent variable of managerial risk-taking behaviors. In our case, the controlling variables of firm size and CEOs being part of the board showed to have a significant effect on the managerial risk-taking behaviors of CEOs.

The purpose of this study was to determine if a relationship existed between teachers' or principals' effectiveness and their risk tendency. The population consisted of 57 principals and 115 teachers from the state of Texas from average and exemplary campuses. The exemplary campuses were those nominated by Texas Education Agency to participate in the National Exemplary School Recognition Program for the past four years. Data was generated by sending a survey packet to the 57 campuses requesting that the principal and two teachers (one who had been recently been recognized as teacher of the year and one who had never been so honored) complete the instruments. Teachers responded to a 16 item Risk Tolerance Questionnaire and principals responded to the Risk Tolerance Questionnaire and a Styles of Leadership Survey. The hypothesis that exceptional teachers will not take more risks was not upheld. It was determined that exceptional teachers do take more risks; however, there was no significant difference in scores on the Risk Tolerance Questionnaire of principals from average and exemplary campuses. The findings were that 1) exceptional teachers do take more risks, 2) age and years of experience of teachers was not significant, 3) principals from average and exemplary campuses did not score significantly different on the risk instrument, 4) principals' years of experience was not significant, 5) sex of principals was significant in determining style of leadership, and 6) there was no relationship established between principals' risk tendencies and styles of leadership. It may be concluded that leadership style may be reflective of the work situation and its people, while the tendency to take risks is an independent attribute.

<p>I start with a sample of 26,998 CEOs from the Compustat Executive Compensation (ExecuComp) database starting January 1, 1991 and ending January 1, 2009. I then match the sample with the FAA’s Airmen Certification database using the CEO’s first name, middle initial, and last name. Names with a match are coded as pilots and names without a match are coded as non-pilots. Following Roychowdhury (2006) I remove all firms in regulated industries (SIC codes between 4400 and 5000) as well as banks and financial institutions (SIC codes between 6000 and 6500). The resulting sample consists of 255 pilot-CEOs and 3,935 non-pilot-CEOs. I then merge the CEO dataset to the Compustat Fundamentals Annual database to obtain a final sample consisting of 1,038 CEO-pilot firm-years and 18,455 CEO-non-pilot firm-years. All variables are winsorized at the 1% and 99% levels.</p><p><a></a> </p><div><br><div><p><br></p></div></div>