基地研究员何恭政副教授与合作者（Can Huang, School of Management, Guangdong University of Technology）的论文“Does the presence of executives with a legal background affect stock price crash risk?” 在重要学术期刊Corporate Governance在线发表。

Abstract:

Research Question/Issue: Executives with a legal background have superior knowledge of the law compared with executives who do not have such a background. This study investigates how executives who are well informed of the law can reduce stock price crash risk and how this is significant from a corporate governance perspective.

Research Findings/Insights: We collected and evaluated 23,031 firm-year observations from 2008 to 2018, which resulted in the following findings: (1) Executives with a legal background can effectively reduce stock price crash risk. (2) When the comp[1]any's external or internal supervision is weak, the effect of executives with a legal background in reducing stock price crash risk is particularly prominent. (3) The executives' ability to reduce stock price crash risk is particularly conspicuous when the company's intention to hide bad news is low or when there is a high risk of the bad news being leaked.

Theoretical/Academic Implications: Stock price crash risk is a critical problem to address in the Chinese capital market. The prevailing explanation for crash risk emphasizes executives' concealment of bad news as a primary factor. Since the sup[1]pression of bad news by company executives is the main reason for stock price crash risk, observing the influence of executives on this risk is a viable direct approach. Executives with a legal background, in particular, have a critical influence on companies. They possess a superior understanding of the law compared with those who do not have such a background and are more willing to respect and abide by the law. As a result, they have a lower tolerance for inappropriate acts by the executive team, namely, concealing bad news, which reduces the risk of stock price crash.

Practitioner/Policy Implications: In China, the world's largest transitional economy, investor protection and information environments are still developing. Countries with less developed regulations can adopt substitutive mechanisms, such as making the employment of executives with a legal background mandatory, to facilitate the healthy development of their capitalist markets. Given the capacity of these executives to reduce stock price crash risk, thereby supporting continuous and stable development of the capital market, regulatory authorities should encourage listed companies to hire executives with a legal background. Furthermore, they should also start in-depth promotion of and education on the rule of law among employees to improve their legal competence.

Keywords: corporate governance, stock price crash risk, executive characteristics, executives with a legal background

链接: https://doi.org/10.1111/corg.12435

教师简介

何恭政，男，台湾元智大学博士，金融学硕士生导师，金融工程学硕士生导师。主要研究方向为公司金融、信用风险管理、企业社会责任、信息不对称风险与跨交叉学科研究，在Asia-Pacific Journal of Accounting & Economics, Corporate   Governance: An International Review, Emerging Markets Review, Energy   Economics, International Review of Economics & Finance, International   Review of Financial Analysis, Journal of Accounting, Auditing and Finance,   Journal of Business Research, Journal of Corporate Finance, Journal of   Forecasting, Pacific-Baisn Finance Journal, Review of Quantitative Finance   and Accounting等国际SSCI期刊发表40多篇，其中包含ABS商学院4星级期刊1篇，三星级期刊12篇，SSCI一区期刊17篇。此外，在国内外数十场重要学术会议进行论文宣讲，包含中国金融年会、中国金融工程年会、中国管理学年会、CICF, American Accounting Association, Asian Finance Association,   European Finance Association, Europe Financial Management Association,   Financial Management Association, Taiwan Management Institute, Western   Economic Association International等。此外，为国内外二十多家期刊进行审稿，包含Asia Pacific Journal of Management, Corporate Governance: An   International Review, Economic Modelling, Emerging Markets Finance and Trade,   Financial Innovation, Investment Analysts Journal, International Journal of   Emerging Markets, International Review of Economics and Finance, Managerial   and Decision Economics等。