Married CEOs and Stock Price Crash Risk

This study examines whether marriage, as a social construct and cultural norm, can affect firm-level stock price crash risk. We find that firms managed by married CEOs are associated with lower future stock price crash risk, after controlling for a set of firm characteristics and CEO traits. We document that CEO marriage reduces crash risk by curbing bad news hoarding and formation activities. Moreover, the attenuating impact of CEO marriage on crash risk is more pronounced among firms with weaker corporate governance and those run by less prominent, higher-delta, and lower paid CEOs.

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Year of publication:	2021
Authors:	Kim, Jeong-Bon ; Liao, Shushu ; Liu, Yangke
Publisher:	Belfast : Queen's University Belfast, Queen's Management School
Subject:	Marriage \| CEO \| crash risk \| bad news hoarding \| corporate governance \| compensation

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Series:	QMS Research Paper ; 2021/09
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	10.2139/ssrn.3958224 [DOI] hdl:10419/271254 [Handle] RePEc:zbw:qmsrps:202109 [RePEc]
Classification:	G12 - Asset Pricing ; G30 - Corporate Finance and Governance. General ; M52 - Compensation and Compensation Methods and Their Effects (stock options, fringe benefits, incentives, family support programs) ; M12 - Personnel Management
Source:	EconStor

Persistent link: https://www.econbiz.de/10014284483