Performance Expectation Gap and Risk-Taking of Agricultural Enterprises: The Moderating Effect of Institutional Environment

In recent years, the operational performance of agricultural enterprises has been influenced by both natural conditions and market environments, resulting in high uncertainty and volatility. When performance falls below expectations, agricultural enterprises consciously engage in strategic change and proactive risk-taking to alleviate performance pressures. Based on Firm Behavioral Theory, Performance Feedback Theory, and Prospect Theory, we examine how performance expectation gap affects risk-taking of agricultural enterprises by using panel data of Chinese A-share listed agricultural firms from 2007 to 2023. The results show that performance expectation gap has a positive effect on risk-taking, which means the greater the gap, the higher the level of risk-taking. And the better developed the institutional environment, the greater the tendency for risk-taking. Further analysis shows that performance expectation gap promotes risk-taking by driving strategic change within agricultural enterprises. This research enriches the study on the influencing factors of risk-taking in agricultural enterprises, offering decision-making insights for them to prudently assess and manage risks.