How much do CEOs influence risk attitudes in a firm’s internationalization? Exploring Chinese mining SOEs and NSOEs

This paper provides an insight into comprehending Chinese firms’ strategic behaviour on risks in outward foreign direct investment (OFDI). Qualitative case studies, based on eight Chinese mining state-owned and non-state-owned enterprises (SOEs and NSOEs). The findings suggest that: (a) the characteristics of CEOs (Chief Executive Officers) of both SOEs and NSOEs significantly influenced the firms’ internationalization risk attitudes; (b) the tenure of CEOs led to SOEs’ periodical and NSOEs’ perennial risk attitudes; (c) CEOs’ personalities and tenure tend to drive the directions of risk attitudes, while CEOs’ experiences and remuneration were linked with risk intensities. These results support the upper echelons theory, suggesting that in understanding different ownership types of Chinese firms’ internationalization risk attitudes, CEOs’ characteristics should be investigated.