News sentiment and CEO retirement: The impact on firm performance and risk

Ziqing Gao, Min Hua, Heng Liu and Chao Yan

Research in International Business and Finance, 2023, vol. 66, issue C

Abstract: A growing number of empirical studies on news sentiment offer important insights into corporate behavior. Based on signaling and information content theory, we examine whether news articles are an information source that can reveal or predict firm performance. Furthermore, previous studies suggest that CEOs’ heterogeneous individual-specific characteristics have a significant impact on firms’ performance and decisions. Here, we expand the literature by exploring the impact of near-retirement CEO characteristics on firm performance and risk outcomes. Our paper indicates that near-retirement CEOs are associated with better firm performance but less risk-taking behavior, which is consistent with the view of myopic loss aversion and “legacy conservation” concerns.

Keywords: News sentiment; CEO retirement; Firm performance; Risk-taking (search for similar items in EconPapers)
JEL-codes: G14 G30 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:66:y:2023:i:c:s0275531923001575

DOI: 10.1016/j.ribaf.2023.102031

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