Professor Raghavendra Rau, Cambridge Judge Business School
In this business briefing, Professor Raghavendra Rau will take the opportunity to discuss why certain CEOs are very risk-averse while others appear to tolerate risk very well. Raghu, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, will show the relationship between a CEO’s early-life exposure to disasters and their attitude to risk-taking. Specifically, experiencing disasters without extremely negative consequences appears to desensitise CEOs to the negative consequences of risk. Conversely, where a CEO is exposed to the downside of risky situations when experiencing a disaster, he or she appears to be more cautious in their approach to risk. These results hold across various corporate policies and outcomes including leverage, stock volatility, cash holdings, acquisitiveness, and CEO compensation structure.
Professor Rau will be joined by Dr Amit Kapoor, Honorary Chairman at Institute for Competitiveness, India and Prosperity Institute of India, Editor in Chief of Thinkers in addition to being the President & CEO of India Council on Competitiveness. Dr Kapoor will comment on the topic following Professor Rau’s presentation.