Upholding integrity: The influence of executives’ backgrounds on corporate information environment

Simple item page
dc.citation.volume46
dc.contributor.authorHoang Vu N
dc.contributor.authorDang HV
dc.contributor.authorNguyen HT
dc.contributor.authorPham MH
dc.date.accessioned2025-05-07T20:03:00Z
dc.date.available2025-05-07T20:03:00Z
dc.date.issued2025-06
dc.description.abstractMotivated by the roles of corporate management in shaping corporate decisions and the importance of stock liquidity in financial markets, we examine whether trust in management influences the liquidity costs of the firm that they manage. Using manually collected propriety data from several datasets, this study documents that firms led by ex-military CEOs are associated with higher stock market liquidity than firms run by non-military CEOs. Military CEOs influence stock liquidity by improving their firms’ information environment and reducing performance volatility. Firms led by military CEOs have higher social capital, higher levels of voluntary disclosure, fewer stock price delays, and lower levels of informed trading. In addition, firms run by military CEOs have lower costs of capital and default risk. Overall, consistent with behavioral consistency theory, our findings highlight the importance of executives’ early-life experience in reducing information frictions, fostering trust, and improving secondary market quality. “I think of all the time I spent in the military and in law enforcement and the many times I saw someone do the right thing because it was the right thing to do. The essence of integrity is what you do in and of yourself — you must be true to yourself.” ---Patrick O'Toole, Director & Executive Vice President, HealthMarkets Insurance Agency.
dc.description.confidentialfalse
dc.edition.editionJune 2025
dc.identifier.citationHoang Vu N, Dang HV, Nguyen HT, Pham MH. (2025). Upholding integrity: The influence of executives’ backgrounds on corporate information environment. Journal of Behavioral and Experimental Finance. 46.
dc.identifier.doi10.1016/j.jbef.2025.101050
dc.identifier.eissn2214-6369
dc.identifier.elements-typejournal-article
dc.identifier.issn2214-6350
dc.identifier.number101050
dc.identifier.piiS2214635025000310
dc.identifier.urihttps://mro.massey.ac.nz/handle/10179/72871
dc.languageEnglish
dc.publisherElsevier B V
dc.publisher.urihttps://www.sciencedirect.com/science/article/pii/S2214635025000310
dc.relation.isPartOfJournal of Behavioral and Experimental Finance
dc.rights(c) 2025 The Author/s
dc.rightsCC BY 4.0
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/
dc.subjectInformation frictions
dc.subjectMilitary CEOs
dc.subjectTrust
dc.subjectMarket liquidity
dc.subjectJEL classification
dc.subjectG15
dc.subjectG31
dc.subjectG34
dc.titleUpholding integrity: The influence of executives’ backgrounds on corporate information environment
dc.typeJournal article
pubs.elements-id500583
pubs.organisational-groupOther
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
500583 PDF.pdf
Size:
1.2 MB
Format:
Adobe Portable Document Format
Description:
Published version.pdf
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
9.22 KB
Format:
Plain Text
Description:
Download
Collections
Journal Articles