We investigate the unique role and mechanisms of industry growth in firms’ risk-taking policies. We find that industry growth is negatively associated with corporate risk-taking, consistent with the prospect theory that a high-growth industry gives firms a superior external environment, which...

Guided by their business strategies, firms develop their competitive advantages and overcome systematic risks by allocating their limited resources. This study explores how advertising, labor, R&D, cost, and capital intensities are correlated with the systematic risks of 10 industries in the...