Living through an influential socio-political event: Early-life experiences and stock price crash risk

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2024-08-28 DOI:10.1016/j.frl.2024.106015

引用次数: 0

Abstract

Using China's Cultural Revolution as a shock to risk attitude, this study examines how CEOs’ early-life experiences impact stock price crash risk. We find that CEOs who experienced the Cultural Revolution in their early life are more risk-averse and less inclined to withhold negative news, resulting in a reduced level of stock price crash risk. Further, the more severe the CEO's exposure to the Cultural Revolution, the more pronounced the Cultural Revolution effect. Additional analysis suggests that CEOs’ Cultural Revolution effect is more salient in firms with weak regional law enforcement. Our study highlights the enduring impact of influential socio-political events during early life on the decision-making processes of CEOs.

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经历具有影响力的社会政治事件：早年经历与股价暴跌风险

本研究以中国的文化大革命作为对风险态度的冲击，探讨了首席执行官的早年经历如何影响股价暴跌风险。我们发现，早年经历过文化大革命的 CEO 规避风险的能力更强，更不愿意隐瞒负面消息，从而降低了股价暴跌风险。此外，CEO 经历的文革越严重，文革效应就越明显。其他分析表明，CEO 的 "文革效应 "在地区执法薄弱的企业中更为突出。我们的研究强调了早年有影响力的社会政治事件对首席执行官决策过程的持久影响。

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

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

期刊介绍： Finance Research Letters welcomes submissions across all areas of finance, aiming for rapid publication of significant new findings. The journal particularly encourages papers that provide insight into the replicability of established results, examine the cross-national applicability of previous findings, challenge existing methodologies, or demonstrate methodological contingencies. Papers are invited in the following areas: Actuarial studies Alternative investments Asset Pricing Bankruptcy and liquidation Banks and other Depository Institutions Behavioral and experimental finance Bibliometric and Scientometric studies of finance Capital budgeting and corporate investment Capital markets and accounting Capital structure and payout policy Commodities Contagion, crises and interdependence Corporate governance Credit and fixed income markets and instruments Derivatives Emerging markets Energy Finance and Energy Markets Financial Econometrics Financial History Financial intermediation and money markets Financial markets and marketplaces Financial Mathematics and Econophysics Financial Regulation and Law Forecasting Frontier market studies International Finance Market efficiency, event studies Mergers, acquisitions and the market for corporate control Micro Finance Institutions Microstructure Non-bank Financial Institutions Personal Finance Portfolio choice and investing Real estate finance and investing Risk SME, Family and Entrepreneurial Finance

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