CEOs' early-life experiences and corporate policy: Evidence from China's great famine

Le Zhang

Pacific-Basin Finance Journal, 2017, vol. 46, issue PA, 57-77

Abstract: We examine the style of famine CEOs (CEOs who experienced China's Great Famine) in their corporate policy. By exploiting the variation in famine intensity across provinces, we find that CEOs who experienced more intense famines during their childhood are more risk averse. They use less debt, hold more cash, and perform fewer takeovers. However, their takeovers perform better, and their stock returns are less volatile. Our findings support the view that early-life experience affects CEOs' risk preference.

Keywords: Managerial style; Risk preference; Corporate policy; China's Great Famine (search for similar items in EconPapers)
JEL-codes: D03 G02 G32 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:46:y:2017:i:pa:p:57-77

DOI: 10.1016/j.pacfin.2017.08.004

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