CEO Connectedness and Firm Transparency

Article

Luong, Hoa, Minnick, Kristina, Mia, Mia L. and Shams, Syed. 2024. "CEO Connectedness and Firm Transparency." European Financial Management. https://doi.org/10.1111/eufm.12527
Article Title

CEO Connectedness and Firm Transparency

ERA Journal ID19612
Article CategoryArticle
AuthorsLuong, Hoa, Minnick, Kristina, Mia, Mia L. and Shams, Syed
Journal TitleEuropean Financial Management
Number of Pages20
Year2024
PublisherJohn Wiley & Sons
Place of PublicationUnited Kingdom
ISSN1354-7798
1468-036X
Digital Object Identifier (DOI)https://doi.org/10.1111/eufm.12527
Web Address (URL)https://onlinelibrary.wiley.com/doi/10.1111/eufm.12527
Abstract

Our research reveals that CEO connections with Audit Committee directors, established through past employment, education, or social organization memberships, significantly impact firm transparency. These connections increase the likelihood of firms issuing less transparent and readable financial reports. Furthermore, these connections are linked to decreased long-term firm value and increased crash risk. Our findings underscore the crucial role of CEO connectedness in corporate disclosure transparency and firm value. We employed multiple methodologies to address endogeneity concerns. Our results remain robust.

Keywordsmanagerialobfuscation theory ; social network theory; board connection; Chief Executive Officers (CEOs); corporate disclosure readability ; firm transparency ; independent directors
Contains Sensitive ContentDoes not contain sensitive content
ANZSRC Field of Research 2020359999. Other commerce, management, tourism and services not elsewhere classified
Public Notes

The accessible file is the accepted version of the paper. Please refer to the URL for the published version.

Byline AffiliationsUniversity of Otago, New Zealand
Bentley University, United States
Xavier University, United States
School of Commerce
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