Married CEOs and stock price crash risk

Jeong-Bon Kim; Shushu Liao; Yangke Liu

doi:10.1111/eufm.12343

Married CEOs and stock price crash risk

Jeong-Bon Kim, Shushu Liao, Yangke Liu

Queen's Business School (QBS)

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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
Number of pages	37
Journal	European Financial Management
Volume	28
Issue number	5
Early online date	17 Nov 2022
DOIs	https://doi.org/10.1111/eufm.12343
Publication status	Published - Nov 2022

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Married CEOs and Stock Price Crash Risk
Copyright 2021, John Wiley & Sons Ltd. This work is made available online in accordance with the publisher’s policies. Please refer to any applicable terms of use of the publisher.
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Married CEOs and stock price crash risk

Abstract

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