CEO with a business educational background and corporate resilience

In times of unprecedented global disruption, such as the COVID-19 pandemic, the survival and recovery of firms depend not only on resources but also on leadership characteristics. This study explores whether CEOs’ business education is associated with firms’ ability to navigate severe economic shocks and demonstrate corporate resilience. Using event-based analysis on 2,314 Chinese firms that faced sharp stock price declines, the research finds that firms led by CEOs with formal business education tend to experience smaller financial losses and faster recovery. These outcomes appear linked to financial management practices, such as higher cash holdings and more timely disposal of financial assets to manage liquidity pressures. Robustness checks confirm the consistency of the results, while additional analysis highlights that the association is stronger for CEOs with higher level of education. The study offers insights into how business-educated leadership relates to firms’ adaptive capacity, providing useful implications for corporate governance, strategic decision-making, and post-pandemic recovery.