Abstract
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.
| Original language | English |
|---|---|
| Pages (from-to) | 1376-1412 |
| Journal | European Financial Management |
| Volume | 28 |
| Issue number | 5 |
| Online published | 9 Nov 2021 |
| DOIs | |
| Publication status | Published - Nov 2022 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 3 Good Health and Well-being
Research Keywords
- bad news hoarding
- CEO
- compensation
- corporate governance
- crash risk
- marriage
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