科研之友
微信
新浪微博
Facebook
分享链接
摘要
Early life experience may influence an executive's psychology and behaviour, which affects the company's financial policy. Using a unique early life political event, this paper finds that the ‘Down to the Countryside’ experience of board chairs in China increases their risk aversion and reduces the firms’ innovation investments. Such an effect is robust to a series of alternative tests. Further analysis shows that this impact is not weakened by chairs’ higher education, and their increased risk aversion results in the chairs being more prudent and making more efficient investment decisions.(#br)Using a unique early life political event, we find (1) This exogenous experience increases chairmen's risk aversion and reduces their innovation investments. (2) Higher education does not weaken the effect. (3) The increased risk aversion of the chairmen also causes them to make more prudent and efficient investment decisions.s
- 单位
