Do Overseas Financial Institutions Experiences of Executives Reduce Stock Price Crash Risk?

Posted: 18 Sep 2020

See all articles by keping wu

keping wu

Chaohu University; Chaohu University

Date Written: August 5, 2020

Abstract

This study examines the effect of executives’ overseas working experiences in financial institutions on stock price crash risk in Chinese stock markets. We show that overseas experiences significantly alleviate crash risk, and the effect is more pronounced in firms with weak internal control, low accounting conservatism, high large shareholders’ holding, and weak investor protection. The effect is insignificant in stated-owned enterprises and firms with strong external monitoring. Our results are robust to alternative specifications and measures. Overall, this study highlights a new channel of international knowledge spillover and provides practical implication to regulators in emerging markets for attracting overseas talents.

Keywords: Returnee Executives, Stock Price Crash Risk, Chinese Capital Market, Corporate Governance

JEL Classification: G14, G18

Suggested Citation

wu, keping, Do Overseas Financial Institutions Experiences of Executives Reduce Stock Price Crash Risk? (August 5, 2020). Available at SSRN: https://ssrn.com/abstract=3667547

Keping Wu (Contact Author)

Chaohu University ( email )

chaohu economic development zone

Chaohu University ( email )

chaohu economic development zone

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