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CEO political ideology and risk factor disclosure

Author

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  • Jiwoo Seo
  • Adam Esplin
  • Yun Ke

Abstract

We examine whether and how CEO political ideology affects risk factor disclosure. Using CEO political contributions to proxy for ideology, we find that firms with Republican‐leaning CEOs provide less risk factor information than those with non‐Republican‐leaning CEOs. Our findings are robust using a propensity score‐matched sample, entropy balancing, and a two‐stage residual inclusion approach. The impact of political ideology on risk factor disclosure is stronger when the CEO has more power over corporate decision‐making and is mitigated by higher litigation risk. Our results suggest that politically conservative CEOs prioritise certainty and security, leading them to safeguard confidential information or avoid negative publicity by being transparent about company risks.

Suggested Citation

  • Jiwoo Seo & Adam Esplin & Yun Ke, 2025. "CEO political ideology and risk factor disclosure," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 65(2), pages 1468-1496, June.
    • Handle: RePEc:bla:acctfi:v:65:y:2025:i:2:p:1468-1496
    DOI: 10.1111/acfi.13374
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    References listed on IDEAS

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