TY - JOUR
T1 - Party school CEO and credit ratings
T2 - evidence from Chinese state-owned-enterprises
AU - He, Xudong
AU - Yang, Yusheng
AU - Fu, Servanna Mianjun
AU - Xu, Cheng
N1 - Publisher Copyright:
© 2024 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2024
Y1 - 2024
N2 - This paper examines whether credit rating agencies consider CEOs with Party school education as a risk factor in credit assessments using Chinese SOEs data from 2006 to 2020. Our findings suggest Party school CEOs are associated with higher credit ratings and exhibit lower risk-taking, resulting in less volatile performance. This research offers initial evidence on the benefits and costs of hiring politically connected CEOs, specifically Party school-educated ones.
AB - This paper examines whether credit rating agencies consider CEOs with Party school education as a risk factor in credit assessments using Chinese SOEs data from 2006 to 2020. Our findings suggest Party school CEOs are associated with higher credit ratings and exhibit lower risk-taking, resulting in less volatile performance. This research offers initial evidence on the benefits and costs of hiring politically connected CEOs, specifically Party school-educated ones.
KW - CEO characteristics
KW - credit rating
KW - Party school
KW - political connection
KW - risk-taking
UR - http://www.scopus.com/inward/record.url?scp=85209595684&partnerID=8YFLogxK
U2 - 10.1080/13504851.2024.2425398
DO - 10.1080/13504851.2024.2425398
M3 - Article
AN - SCOPUS:85209595684
SN - 1350-4851
JO - Applied Economics Letters
JF - Applied Economics Letters
ER -