Abstract
ABSTRACT This study uses the Google machine learning platform to measure news sentiment and examine how the sentiment of firm-specific released news relates to the risk level of publicly listed Chinese firms. Our results show that positive (negative) sentiment leads to a lower (higher) risk-taking level. In addition, after exploring the explanations for risk-taking differentials in response to released news, we find that female CEOs are an important mechanism linking news sentiment to firm risk. Intuitively, our results imply that female CEOs are more risk-averse than their male counterparts. Our main findings remain valid after performing several robustness tests.
Published Version
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