Short selling and SME irregular CEO succession: Witnessing the moderating role of earnings management

Yezhou Sha, Syed Ghulam Meran Shah and Muddassar Sarfraz

International Review of Economics & Finance, 2023, vol. 85, issue C, 163-173

Abstract: The objective of the study is to contemplate the impact of irregular CEO succession on small-medium enterprises' short selling. Using the sample containing 933 Chinese listed SMEs in 2015–2019, we have formulated irregular CEO succession. Further, irregular CEO succession has been categorized into three types while contemplating the SMEs' profile. Conclusively, the empirical underpinnings substantiate the absolute effectiveness of irregular CEO successor on short selling. Similarly, the three categorizations of irregular CEO succession have augmented the short-selling targeting on SMEs. Explicitly, earning management's moderating role has been demonstrated to be a blessing in disguise for deterring the short sale. Additionally, CEO attributes such as age and education have negatively correlated with short selling. Our findings contribute to deepen the understanding of psychological aspects of the top management team of Chinese SMEs.

Keywords: Corporate governance; Irregular CEO succession; SMEs; Earning management; Decision making (search for similar items in EconPapers)
JEL-codes: G30 G34 M10 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:85:y:2023:i:c:p:163-173

DOI: 10.1016/j.iref.2023.01.017

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