Risk taking by the firm is very important for the firm to maximizing its economic resources its value. However, taking huge risk may leads to crisis and other economic problems. The primary objectives of our study is to explore the relationship between ownership structure (Family ownership, institutional ownership and ownership concentration) with risk taking behavior of the firms in listed firms of the Pakistan. Our study uses the data of 270 firmís data for the period of 2011-2018 that is list in PSX. In this study pooled OLS with Random Effect Panel regression method are used to examine the relationship between the risk-taking behavior and ownership structure. Overall results suggest that institutional ownership has significant and negative relationship with risk taking behavior of the firm. Family ownership and ownership concentration has significant and negative relationship with risk taking behavior of the firms. Firm size has negative relation it means that large firms has various resources in shape of the human resource that has skillful in maintain the risk by also taking the advices of the experts. Growth opportunity has significant and positive relationship with risk taking. In Pakistan there is few researches works on the ownership structure and risk behavior especially on the ownership concentration and family ownership. In our research family ownership, ownership concentration and institutional ownership is taken because in mostly Asian countries has family and institutional owned firms. My suggestion is that some further study should be conducted on corporate governance other factors such as board expertise and knowledge, gender diversity and board qualification that make strong corporate governance and has impact on the risk-taking behavior of the firm.
Ownership structure, Risk taking behavior, Pakistan, Non-financial firms