CEO social capital and litigation risk

Lu Zhang; Fei Peng; Yuan George Shan; Yiping Chen

doi:10.1016/j.frl.2022.103405

CEO social capital and litigation risk

Lu Zhang, Fei Peng, Yuan George Shan, Yiping Chen

School of Statistics

Research output: Contribution to journal › Article › peer-review

32 Scopus citations

Abstract

We examine the association between chief executive officer (CEO) social capital and firm litigation risk. Employing a sample of Chinese listed firms from 2008 to 2017, we find that firms with high CEO social capital relate to lower litigation risk. Further analyses show that the negative correlation only exists for firms that are non-state-owned enterprises, are located in low-marketized regions, face periods of economic downturns, have high managerial ownership, and retain well-connected independent directors on boards. Our results hold after a battery of robustness checks. Together, these findings provide unique evidence to support the beneficial role of CEO social capital in risk reduction.

Original language	English
Article number	103405
Journal	Finance Research Letters
Volume	51
DOIs	https://doi.org/10.1016/j.frl.2022.103405
State	Published - Jan 2023

Keywords

CEO social capital
Litigation risk
Network centrality

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10.1016/j.frl.2022.103405

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title = "CEO social capital and litigation risk",

abstract = "We examine the association between chief executive officer (CEO) social capital and firm litigation risk. Employing a sample of Chinese listed firms from 2008 to 2017, we find that firms with high CEO social capital relate to lower litigation risk. Further analyses show that the negative correlation only exists for firms that are non-state-owned enterprises, are located in low-marketized regions, face periods of economic downturns, have high managerial ownership, and retain well-connected independent directors on boards. Our results hold after a battery of robustness checks. Together, these findings provide unique evidence to support the beneficial role of CEO social capital in risk reduction.",

keywords = "CEO social capital, Litigation risk, Network centrality",

author = "Lu Zhang and Fei Peng and Shan, \{Yuan George\} and Yiping Chen",

note = "Publisher Copyright: {\textcopyright} 2022 Elsevier Inc.",

year = "2023",

month = jan,

doi = "10.1016/j.frl.2022.103405",

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AU - Zhang, Lu

AU - Peng, Fei

AU - Shan, Yuan George

AU - Chen, Yiping

PY - 2023/1

Y1 - 2023/1

N2 - We examine the association between chief executive officer (CEO) social capital and firm litigation risk. Employing a sample of Chinese listed firms from 2008 to 2017, we find that firms with high CEO social capital relate to lower litigation risk. Further analyses show that the negative correlation only exists for firms that are non-state-owned enterprises, are located in low-marketized regions, face periods of economic downturns, have high managerial ownership, and retain well-connected independent directors on boards. Our results hold after a battery of robustness checks. Together, these findings provide unique evidence to support the beneficial role of CEO social capital in risk reduction.

AB - We examine the association between chief executive officer (CEO) social capital and firm litigation risk. Employing a sample of Chinese listed firms from 2008 to 2017, we find that firms with high CEO social capital relate to lower litigation risk. Further analyses show that the negative correlation only exists for firms that are non-state-owned enterprises, are located in low-marketized regions, face periods of economic downturns, have high managerial ownership, and retain well-connected independent directors on boards. Our results hold after a battery of robustness checks. Together, these findings provide unique evidence to support the beneficial role of CEO social capital in risk reduction.

KW - CEO social capital

KW - Litigation risk

KW - Network centrality

UR - https://www.scopus.com/pages/publications/85143777593

U2 - 10.1016/j.frl.2022.103405

DO - 10.1016/j.frl.2022.103405

M3 - 文章

AN - SCOPUS:85143777593

SN - 1544-6123

VL - 51

JO - Finance Research Letters

JF - Finance Research Letters

M1 - 103405

ER -

CEO social capital and litigation risk

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Keywords

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