Fu, Xi and Zhang, Zhifang (2019) CFO cultural background and stock price crash risk. Journal of International Financial Markets, Institutions and Money . doi:10.1016/j.intfin.2019.05.001 (In Press)

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Abstract

We investigate the relation between the cultural background of chief financial officers (CFOs) and stock price crash risk. Using a novel single-country setting in the U.K. market, we find robust evidence that CFOs from cultural backgrounds that emphasise uncertainty avoidance are negatively associated with firms’ stock price crash risk. Our evidence further shows that the effect of CFO uncertainty avoidance is more pronounced for firms with higher information asymmetry and riskiness, and when CFOs have a greater ability to influence firm decisions. Overall, the results shed light on the important role of CFO cultural background for firm policies and outcomes.

Item Type:	Journal Article
Divisions:	Faculty of Social Sciences > Warwick Business School > Accounting Faculty of Social Sciences > Warwick Business School
Journal or Publication Title:	Journal of International Financial Markets, Institutions and Money
Publisher:	Elsevier BV
ISSN:	1042-4431
Official Date:	21 May 2019
Dates:	Date Event 21 May 2019 Available 18 May 2019 Accepted
Date of first compliant deposit:	23 July 2019
DOI:	10.1016/j.intfin.2019.05.001
Status:	Peer Reviewed
Publication Status:	In Press
Access rights to Published version:	Restricted or Subscription Access
Related URLs:	Other Repository

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