The greed factor of executives and the risk of a company stock price crash

Abstract

This study develops an empirical econometric model, using Chinese listed companies as the research subject, to empirically test the impact of executives’ greed factor, which is primarily defined by on-the-job consumption, on the risk of company stock price collapse. The study's results show that executive on-the-job consumption significantly exacerbates the risk of company stock price collapse, and this effect is stronger in companies with a lower proportion of institutional investors and poorer corporate Environmental, Social, and Governance (ESG) performance.