The Relationship of Threat-Rigidity, Entrepreneurial Orientation and Signaling (the Risk-Taking Behavior Theories) with Companies' performance with respect to the Moderating Role of the Risk Management Committee

The present research aimed to study the relationship of threat-rigidity, entrepreneurial orientation and signaling (The risk taking behavior theories) with performance of the companies listed on the Tehran Stock Exchange with respect to the moderating role of the risk management committee. However, according to the Article 2 of the Audit Committee Charter approved by the Stock Exchange and Securities Organization, one purpose of the audit committees is risk management and improvement of internal controls; As a consequence, audit committees of the companies were considered as risk management committees. The statistical population of the research consisted of the all companies listed on the Tehran Stock Exchange during 2013-2022. Eighty-two companies were selected as the sample of the study. The hypotheses were tested using linear regression model and Eviews software was used to perform the tests. The research results showed that according to the threat-rigidity theory, the companies' performance decreased with the companies' debts and debt financing. However, according to the entrepreneurial orientation theory, the companies' performance increased with earnings uncertainty risk. Study of the risk-taking behavior based on the signaling theory showed that there was not a significant relationship between capital intensity risk and the companies' performance. The additional findings showed that risk management committee does not moderate the relationship between risk-taking behavior (financial leverage risk, earnings uncertainty risk and capital intensity risk) and the companies' performance.