Cai, X., Gao, Y., Wu, Z. et al. (1 more author) (2024) Chief executive officer marital status and corporate credit ratings. International Review of Financial Analysis, 95 (Part A). 103385. ISSN 1057-5219
Abstract
In this study, we investigate the effects of CEO marital status on credit risk assessments. We find that firms with married CEOs receive more favorable credit ratings. We also find that firms with married CEOs have a lower bankruptcy risk, less exposure to business uncertainty shocks, and better institutional corporate social responsibility (CSR) performance, giving richer insights into potential mechanisms through which married CEOs improve credit ratings. Furthermore, we find that the positive effects of married CEOs on credit ratings are more pronounced for firms with stronger CEO risk-taking incentives provided by option compensation and firms with greater tournament incentives measured as the pay gap between the CEO and the next layer of senior executives. Overall, this study emphasizes the implications of CEO marital status for debtholder wealth.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2024 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/bync-nd/4.0/). |
Keywords: | CEO marital status; Corporate credit ratings; Bankruptcy risk; Corporate social responsibility (CSR); Business uncertainty shocks |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 07 Jun 2024 15:11 |
Last Modified: | 07 Aug 2024 14:58 |
Published Version: | https://www.sciencedirect.com/science/article/pii/... |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.irfa.2024.103385 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:213191 |
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