The greed factor of executives and the risk of a company stock price crash

Ning Wang and Chunyan Zhang

Finance Research Letters, 2024, vol. 62, issue PA

Abstract: This study develops an empirical econometric model, using Chinese listed companies as the research subject, to empirically test the impact of executives’ greed factor, which is primarily defined by on-the-job consumption, on the risk of company stock price collapse. The study's results show that executive on-the-job consumption significantly exacerbates the risk of company stock price collapse, and this effect is stronger in companies with a lower proportion of institutional investors and poorer corporate Environmental, Social, and Governance (ESG) performance.

Keywords: Stock price crash risk; On-the-job consumption (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324001223

DOI: 10.1016/j.frl.2024.105092

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