Finance Cluster Seminar: Balasingham Balachandran
We find that powerful CEOs lead to crash and takeover index, a proxy for corporate governance engendered by the legal environment, mitigates crash. This results hold controlling for opacity, tax avoidance, CFO option incentives and CEO overconfidence, which steer crash. The impact of tax avoidance, CFO option incentives and CEO overconfidence on crash is more pronounced for firms with powerful CEOs. The impact of opacity on stock price crash is more pronounced for firms with founder CEOs. The takeover index has no impact on crash for firms with founder CEOs. Our findings provide new insights to the determinants of crash.
Research interests include: Asset pricing and investment, Capital market and asset pricing, Corporate finance and governance, Financial markets microstructure and information, Quantitative finance
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