Married CEOs and Stock Price Crash Risk

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: QMS Research Paper ; No. 2021/09

Classification and Topics

• Classification: Wirtschaft ; Asset Pricing; Trading Volume; Bond Interest Rates ; Corporate Finance and Governance: General ; Personnel Economics: Compensation and Compensation Methods and Their Effects ; Personnel Management; Executives; Executive Compensation
• Subject: Marriage ; CEO ; crash risk ; bad news hoarding ; corporate governance ; compensation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kim, Jeong-Bon ; Liao, Shushu ; Liu, Yangke
• Event: Veröffentlichung
• (who): Queen's University Belfast, Queen's Management School
• (where): Belfast
• (when): 2021

Further information

• DOI: doi:10.2139/ssrn.3958224
• Handle: http://hdl.handle.net/10419/271254
• Last update: 10.03.2025, 11:42 AM CET