Article ID Journal Published Year Pages File Type
5102274 Pacific-Basin Finance Journal 2017 21 Pages PDF
Abstract
We examine the style of famine CEOs (CEOs who experienced China's Great Famine) in their corporate policy. By exploiting the variation in famine intensity across provinces, we find that CEOs who experienced more intense famines during their childhood are more risk averse. They use less debt, hold more cash, and perform fewer takeovers. However, their takeovers perform better, and their stock returns are less volatile. Our findings support the view that early-life experience affects CEOs' risk preference.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
,