The Business Strategy, Ownership and Risk-taking

Based on Shanghai and Shenzhen A-share listed enterprises from 2007 to 2014, this paper finds that the risk-taking level of the firm with prospector strategy enterprises is higher than the defender strategy enterprises; the state-owned ownership has a negative moderating effect in this influence; the influence of the central state-owned enterprise' strategy on the risktaking is not significant. Further research shows that the pyramid structure effectively suppresses the negative moderating effect of the state-owned ownership, but it is not significant to the central state-owned enterprises. This paper systematically examines the ownership theory and competition theory, analyzes and examines the effect of the pyramid structure on the policy burden related to competition theory, and provides theoretical references for the relevant supervisory regulators and the managers of the state-owned enterprises to enhance the risk-taking of state-owned enterprises and promotes the reform of state-owned enterprises.