Born to behave: Home CEOs and financial misconduct*

• 成果类型: Article
• 署名作者: Lei, Zicheng; Petmezas, Dimitris; Rau, P. Raghavendra; Yang, Chen
• 署名单位: University of London; King's College London; Durham University; University of Cambridge; University of Glasgow
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-025-09870-y
• 发表日期: 2025
• 页码: 1309-1354
• 关键词: earnings management; ORGANIZATIONAL CULTURE; equity incentives; ANALYST COVERAGE; Corporate fraud; reputation; QUALITY; penalties; MARKET; BOARD

摘要

We examine the association between CEO birthplace proximity and financial misconduct. We find that CEOs managing firms near their birthplaces (home CEOs) are associated with less financial misconduct compared to other CEOs. This association is not attributable to differences in corporate governance. The relationship strengthens in areas with a strong local investment presence and greater religious commitment as well as among CEOs with longer tenures in their home state. Our findings are robust to addressing potential selection and omitted variable biases as well as to conducting multiple robustness tests, including analyses of involuntary CEO changes and headquarters relocations. We also find a similar association for CFOs, with firms employing home CFOs exhibiting less financial misconduct.