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CEO's prison experience and corporate risk-taking

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Listed:
  • Huang, Shuang
  • Zhang, Zheng
  • Nahm, Abraham Y.
  • Song, Zengji

Abstract

This paper studies the impact of a CEO's prison experience on corporate risk-taking. Using a sample of Chinese private sector manufacturing firms listed on the A-shares in Shanghai and Shenzhen from 2000 to 2021, the results show that firms led by CEOs with prison experience have higher levels of risk-taking. Further analysis suggests that the marketization process moderates the positive effect of the CEO's prison experience on corporate risk-taking. Similarly, the effect is less pronounced according to the CEO's education level and political identity. This paper also finds that the effect of the CEO's prison experience on corporate risk-taking is amplified during the period of COVID-19.

Suggested Citation

  • Huang, Shuang & Zhang, Zheng & Nahm, Abraham Y. & Song, Zengji, 2024. "CEO's prison experience and corporate risk-taking," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    • Handle: RePEc:eee:finana:v:95:y:2024:i:pb:s105752192400320x
    DOI: 10.1016/j.irfa.2024.103388
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    References listed on IDEAS

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