Managerial ownership, risk, and corporate performance Available to Purchase

This study examines the impact of managerial ownership on risk‐taking and firm performance. The study utilizes data for thirty randomly selected companies from four industries in four different sectors. Industries are oil & gas and field services from energy sector; insurance, property, and casualty from the financial sector, drugs from the health sector; and computer and data processing from the technology sector. This yielded a total of 120 observations. Accounting measures and correlation analysis are used to determine the relationship between managerial ownership, risk‐taking, and firm performance in each industry and for the whole sample. We found no significant relationship between these variables in different industries and for the whole sample. Managerial ownership seems to be merely a reflection of the way in which managers receive their benefits. Managerial ownership does not seem to provide any incentive to work harder for improving the company’s performance in the accounting sense.