Married CEOs and Stock Price Crash Risk

Jeong-Bon Kim, Shushu Liao and Yangke Liu

No 2021/09, QBS Working Paper Series from Queen's University Belfast, Queen's Business School

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.

Keywords: Marriage; CEO; crash risk; bad news hoarding; corporate governance; compensation (search for similar items in EconPapers)
JEL-codes: G12 G30 M12 M52 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:qmsrps:202109

DOI: 10.2139/ssrn.3958224

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