论文标题：CEOs' Hometown Connections and Stock Price Crash Risk: Evidence from Emerging Market

发表时间：2022.09 ，接收待发

论文所有作者：Fu Fanjie, Yao Shujie (*), Fang Jing, Zheng Yu

期刊名及所属分类：Basal Istanbul Review

英文摘要：This paper investigates the impact of CEO (chief executive officer) hometown connection with suppliers on stock price crash risk (SPCR). Using manually collected data of CEOs’ hometown connections in China's A-share listed companies on the Shanghai and Shenzhen Stock Exchanges, it is found that CEOs’ hometown connections significantly raise SPCR. Hometown connections do not guarantee managerial ethics. On the contrary, CEOs may abuse the trust and reputation gained through hometown connection. We propose the plausible explanations for “hometown effect”: CEO personal interest and overconfidence. The "hometown effect" is more pronounced for CEOs of the state-owned firms, firms with low CEO compensation, local CEOs, low-quality auditing and in areas with low level marketization. It also reveals that CEO shareholding strengthens the role of the "hometown effect". As far as SPCR is concerned, the research findings of this paper have significant implications for investor decisions on various listed firms in terms of CEO hometown connection.

关键词: stock price crash risk; CEOs' hometown connections; outsiders' trust; information asymmetry; informal institution