Abstract This paper studies the effect of the structural hole of independent director networks on corporate risk-taking, along with the moderating role of the formal institution and competitive position of the enterprise. Using a sample of China A-share listed firms over the period of 2007—2014, the empirical results found that the quantity of structural holes occupied by independent directors is negative related to the corporate risk-taking behavior. The negative relationship is more obvious where the formal institution is weaker. Moreover, the competitive position of the enterprise strengthens the relationship between the structural hole of the independent director and corporate risk-taking. This paper complements the literature of independent directors governance and corporate risk-taking.
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