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Socioeconomic background influences risk-taking decisions of chief executives

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Socioeconomic background influences risk-taking decisions of chief executives

Noemi Nagy

A recent study from the USA investigated the influence of chief executive officers perceived social class origins on their strategic risk taking preferences. The authors of the study found that CEOs of upper and lower social class origins engage in higher levels of strategic risk taking compared to their middle class counterparts. This research was one of the first attempts to integrate work-related decision making and social class background. It provides an important initial step toward understanding the effects of the social class background of leaders on firm-level outcomes.

Kish-Gephart, J. J., & Campbell, J. T. (2015). You don’t forget your roots: The influence of CEO social class background on strategic risk taking. Academy of Management Journal58(6), 1614-1636.