Managerial Political Orientation and Stock Price Crash Risk Academic Article

abstract

• This article examines whether managers political orientation, which reflects their risk preferences, is associated with firms stock price crash risk. We find that stock price crash risk is lower when corporate managers have more conservative political ideologies, and the results are robust to controls for other determinants of crash risk. We use Heckman two-stage model and employ difference-in-differences research design around executive turnovers to show that our results are not simply driven by potential endogeneity. We also document that the relation between managerial political orientation and stock price crash risk is stronger when external monitoring is weaker. JEL Classifications: G12; G14; M41.

authors

• Jin, Hengda

published proceedings

• JOURNAL OF ACCOUNTING AUDITING AND FINANCE

altmetric score

• 1.5

author list (cited authors)

• Chen, W., Jin, H., & Luo, Y.

citation count

• 4

complete list of authors

• Chen, Wanyi||Jin, Hengda||Luo, Yan

publication date

• October 2022

publisher

• SAGE Publications  Publisher

published in

• JAAF: Journal of Accounting Auditing and Finance  Journal

keywords

• Managerial Political Orientation
• Managerial Risk Preferences
• Stock Price Crash Risk

Digital Object Identifier (DOI)

• 10.1177/0148558X20945421

start page

• 829

end page

• 847

volume

• 37

issue

• 4

URL

• http://dx.doi.org/10.1177/0148558x20945421