An Operationalisation of Managerial Risk-Taking and its Performance Implications in the Tunisian Context

This article assesses managerial risk-taking and their performance in the Tunisian context. Drawing on a Tunisian sample of 46 listed companies during 1997–2006, our modelling offers a factor score of managerial risk-taking which takes into account both financial and strategic dimensions. We find that the Tunisian firms tend to be more conservative and risk-averse, which might lead to performance decline. Our analysis also highlights a non-linear relationship between managerial risk-taking and performance.