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Executive human capital premium and corporate stock price volatility

Author

Listed:
  • Cheng, Ying
  • Chen, Weichen
  • Liu, Shaoqing
  • Li, Zhouzhou

Abstract

This research explores the implications of executive human capital premiums for firm stock market performance. Taking advantage of a large panel dataset comprising all publicly listed Chinese enterprises spanning from 2013 to 2024, this paper offers strong evidence that executive human capital premium exacerbates corporate stock price volatility. This effect is more salient when there is a lack of effective corporate governance. The conclusion remains sound after coping with possible endogeneity and sensitivity. In sum, by shedding light on the relation between concepts of two different research domains, this study contributes to both human resources and finance literature.

Suggested Citation

  • Cheng, Ying & Chen, Weichen & Liu, Shaoqing & Li, Zhouzhou, 2025. "Executive human capital premium and corporate stock price volatility," Finance Research Letters, Elsevier, vol. 86(PB).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pb:s1544612325015326
    DOI: 10.1016/j.frl.2025.108278
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    References listed on IDEAS

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