The Internet-Based Business Model and Corporate Risk-Taking: An Empirical Study from the Information Empowerment Perspective
Reasonable risk-taking acts as a solid foreground for sustaining corporate growth. Having companies trading on Chinese stock exchanges between 2010 and 2019 sampled, this paper explored how an Internet-based business model would affect corporate risk-taking from the perspective of information empowe...
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| Format: | Article |
| Language: | English |
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Wiley
2022-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2022/9755719 |
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| _version_ | 1832554930842370048 |
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| author | Lei Li Shuili Yang |
| author_facet | Lei Li Shuili Yang |
| author_sort | Lei Li |
| collection | DOAJ |
| description | Reasonable risk-taking acts as a solid foreground for sustaining corporate growth. Having companies trading on Chinese stock exchanges between 2010 and 2019 sampled, this paper explored how an Internet-based business model would affect corporate risk-taking from the perspective of information empowerment. Through the mediation effect model and quantitative text analysis, the following findings were obtained here. First, a network-powered business model could significantly enhance the risk tolerance of companies. Second, mechanism testing showed that such a novel model would help reduce the asymmetry of corporate information and thus enhance corporate risk-taking capacity. Third, an analysis on heterogeneity revealed that businesses that enjoy a freer market and fewer financing constraints could better feel the positive impact of an Internet-based business model on corporate risk-taking. Fourth, an examination of economic consequences showed that risk-taking under Internet-based business models allowed enterprises to create sustainable value. Overall, the present work confirmed the positive impact of an Internet-based business model on corporate risk-taking from the information empowerment angle, and it is expected to provide a theoretical basis for enterprises to optimize their investment decision-making strategies and increase their risk-taking willingness and capacity. |
| format | Article |
| id | doaj-art-1b5c3b7f347748979bed7bdd99fce48f |
| institution | Kabale University |
| issn | 1607-887X |
| language | English |
| publishDate | 2022-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-1b5c3b7f347748979bed7bdd99fce48f2025-02-03T05:50:06ZengWileyDiscrete Dynamics in Nature and Society1607-887X2022-01-01202210.1155/2022/9755719The Internet-Based Business Model and Corporate Risk-Taking: An Empirical Study from the Information Empowerment PerspectiveLei Li0Shuili Yang1School of Economics and ManagementSchool of Economics and ManagementReasonable risk-taking acts as a solid foreground for sustaining corporate growth. Having companies trading on Chinese stock exchanges between 2010 and 2019 sampled, this paper explored how an Internet-based business model would affect corporate risk-taking from the perspective of information empowerment. Through the mediation effect model and quantitative text analysis, the following findings were obtained here. First, a network-powered business model could significantly enhance the risk tolerance of companies. Second, mechanism testing showed that such a novel model would help reduce the asymmetry of corporate information and thus enhance corporate risk-taking capacity. Third, an analysis on heterogeneity revealed that businesses that enjoy a freer market and fewer financing constraints could better feel the positive impact of an Internet-based business model on corporate risk-taking. Fourth, an examination of economic consequences showed that risk-taking under Internet-based business models allowed enterprises to create sustainable value. Overall, the present work confirmed the positive impact of an Internet-based business model on corporate risk-taking from the information empowerment angle, and it is expected to provide a theoretical basis for enterprises to optimize their investment decision-making strategies and increase their risk-taking willingness and capacity.http://dx.doi.org/10.1155/2022/9755719 |
| spellingShingle | Lei Li Shuili Yang The Internet-Based Business Model and Corporate Risk-Taking: An Empirical Study from the Information Empowerment Perspective Discrete Dynamics in Nature and Society |
| title | The Internet-Based Business Model and Corporate Risk-Taking: An Empirical Study from the Information Empowerment Perspective |
| title_full | The Internet-Based Business Model and Corporate Risk-Taking: An Empirical Study from the Information Empowerment Perspective |
| title_fullStr | The Internet-Based Business Model and Corporate Risk-Taking: An Empirical Study from the Information Empowerment Perspective |
| title_full_unstemmed | The Internet-Based Business Model and Corporate Risk-Taking: An Empirical Study from the Information Empowerment Perspective |
| title_short | The Internet-Based Business Model and Corporate Risk-Taking: An Empirical Study from the Information Empowerment Perspective |
| title_sort | internet based business model and corporate risk taking an empirical study from the information empowerment perspective |
| url | http://dx.doi.org/10.1155/2022/9755719 |
| work_keys_str_mv | AT leili theinternetbasedbusinessmodelandcorporaterisktakinganempiricalstudyfromtheinformationempowermentperspective AT shuiliyang theinternetbasedbusinessmodelandcorporaterisktakinganempiricalstudyfromtheinformationempowermentperspective AT leili internetbasedbusinessmodelandcorporaterisktakinganempiricalstudyfromtheinformationempowermentperspective AT shuiliyang internetbasedbusinessmodelandcorporaterisktakinganempiricalstudyfromtheinformationempowermentperspective |