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The impact of CEO legal responsibility on financialization of entity enterprises

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  • Zhang, Zihao
  • Song, Jiangtao

Abstract

Based on the data of Shanghai and Shenzhen listed enterprises from 2008 to 2022, we empirically test the impact of CEO legal responsibility on the financialization of entity enterprises. We find that CEO legal responsibility has a significant inhibitory effect on the financialization of entity enterprise. This impact will exhibit heterogeneity based on the different characteristics of the enterprise. Corporate social responsibility can play a moderating role between the two. The findings of this paper provide a useful reference for optimizing the internal governance of enterprises and promoting the healthy development of the real economy.

Suggested Citation

  • Zhang, Zihao & Song, Jiangtao, 2025. "The impact of CEO legal responsibility on financialization of entity enterprises," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006221
    DOI: 10.1016/j.frl.2025.107361
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    References listed on IDEAS

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    1. Sun, Tongtong & Xie, Ziliang & Song, Yunxing & Lu, Maopeng, 2025. "Executives' financial background, corporate financialization and corporate innovation," International Review of Financial Analysis, Elsevier, vol. 106(C).
    2. Luo, Ruixin & Fu, Rong, 2025. "CEO legal liability, financing cost, and Firms’ S&T innovation efficiency," Finance Research Letters, Elsevier, vol. 86(PA).

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