Abstract
It is unclear whether and how the CEO's financial background influences a firm's stock price crash risk. We take a sample of China's listed firms to empirically explore this association. The study finds that the CEO's financial background has a positive impact on the stock price crash risk. Besides, we find the mediating influence of earnings management in this nexus as CEOs with a financial background use their expertise to engage in real activity earnings management. Further analysis reveals that the association between CEO's financial background and stock price crash risk gets more pronounced in non‐state enterprises and with CEO power.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
