CEO's early-life famine experience and tunneling: Evidence from China

IF 9.4 3区管理学 Q1 BUSINESS, FINANCE

Journal of International Financial Management & Accounting Pub Date : 2024-04-02 DOI:10.1111/jifm.12207

Shihua Chen, Xu Han, Ali Reda

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Abstract

The Great Chinese Famine is considered one of the most traumatic events recorded in human history and has a long-lasting influence on the survivors' behaviors. Previous studies have linked the CEOs' early-life experiences to corporate decisions and managerial behaviors, but does experience affect corporate governance? We investigate the impact of the CEO's early-life famine experience on tunneling using a data set consisting of 11,573 firm-year observations from the Chinese manufacturing companies publishing A-shares on the main board from 2006 to 2016. We find that companies run by CEOs who experienced the Great Chinese Famine (1959–1961) in their early life are less likely to collude with controlling shareholders to expropriate minority shareholders than those who did not suffer the hardships of famine. We further make mediation tests to confirm two channels: risk aversion and empathy for poverty. The overall findings align with the view of imprinting theory: CEOs' experiences of adverse events in their early life have a lasting impact on their later-life behaviors.

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CEO 的早年饥荒经历与隧道效应：来自中国的证据

中国大饥荒被认为是人类历史上最惨痛的事件之一，对幸存者的行为产生了长期影响。以往的研究将首席执行官的早年经历与公司决策和管理行为联系起来，但经历是否会影响公司治理？我们利用 2006 年至 2016 年在主板发行 A 股的中国制造业公司的 11,573 个公司年观测数据集，研究了 CEO 早年的饥荒经历对隧道效应的影响。我们发现，与没有经历过饥荒的CEO相比，早年经历过中国大饥荒（1959-1961 年）的CEO所经营的公司与控股股东串通侵占小股东的可能性更小。我们进一步进行了中介检验，确认了两个渠道：风险规避和对贫困的同情。总体研究结果与印记理论的观点一致：首席执行官早年的不利事件经历会对他们日后的行为产生持久影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Financial Management & Accounting BUSINESS, FINANCE-

CiteScore

9.10

自引率

2.00%

发文量

期刊介绍： The Journal of International Financial Management & Accounting publishes original research dealing with international aspects of financial management and reporting, banking and financial services, auditing and taxation. Providing a forum for the interaction of ideas from both academics and practitioners, the JIFMA keeps you up-to-date with new developments and emerging trends.