The Influence of CEO Social Capital on the Level of Corporate Risk Taking

Abstract

This study aims to evaluate the influence of CEO social capital on the level of risk taking of companies listed on the Indonesia Stock Exchange (IDX). CEO social capital in this study is defined as the capacity of a CEO to build and utilize professional social networks as measured by cross-board membership. This study uses secondary data from the annual reports of for the period 2020 to 2024 and is analyzed using a quantitative approach using WarpPLS. The results of the study indicate that CEO social capital does not have a significant effect on corporate risk taking. This finding indicates that the existence of a CEO's social network has not been able to encourage companies to make significantly risky decisions.