The Effect of CEO Power on Corporate Risk Taking using the Generalized Method of Moments (GMM)

The aim of this study is to investigate the effect of CEO Power on Corporate Risk Taking using the Generalized Method of Moments (GMM of listed Companies in Tehran Stock Exchange. These Three dimensions Corporate Risk Taking in our tests :( Total Risk, Idiosyncratic Risk and Systematic Risk). For this purpose one hypotheses are developed and data on the 108 companies in Tehran Stock Exchange for the period of 1389 to 1396 were analyzed. This regression model using panel data with fixed effects approach and Generalized Method of Moments (GMM), reviews and tests. The results showed that CEO Power has significantly negative impact on Corporate Risk Taking (Total Risk, Idiosyncratic Risk and Systematic Risk). Therefore, the research results indicate that the CEO power reduces Corporate Risk Taking.