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Executive misconduct and corporate operational risk

Author

Listed:
  • Zhu, Chenyu
  • Liu, Liwen
  • Zhou, Shoujie
  • Han, Lifeng

Abstract

This study examines the moderating roles of digital transformation and organizational resilience and investigates the impact of executive misconduct on corporate operational risk. Based on 19,346 observations spanning 2010–2022, the findings confirm that misconduct increases risk. Digital transformation improves governance by monitoring, while resilience fosters adaptability. Heterogeneity analysis reveals that state-owned enterprises have higher risk effects, whereas stricter regulations mitigate this effect in heavy-polluting industries. Grounded in agency theory and a resource-based perspective, this study underscores the integration of governance reforms and technological advancements to reduce risks, providing policymakers and enterprises with insights into maintaining corporate stability and performance.

Suggested Citation

  • Zhu, Chenyu & Liu, Liwen & Zhou, Shoujie & Han, Lifeng, 2025. "Executive misconduct and corporate operational risk," Finance Research Letters, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:finlet:v:84:y:2025:i:c:s1544612325010712
    DOI: 10.1016/j.frl.2025.107813
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    References listed on IDEAS

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