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Hauptverfasser: Hongrui Feng, Yanhuang Huang, Betty Simkins, Jian Wang
Format: Artículo Open Access
Veröffentlicht: Wiley 2024
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Online-Zugang:https://onlinelibrary.wiley.com/doi/10.1111/fire.12413
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author Hongrui Feng
Yanhuang Huang
Betty Simkins
Jian Wang
author_facet Hongrui Feng
Yanhuang Huang
Betty Simkins
Jian Wang
Hongrui Feng
Yanhuang Huang
Betty Simkins
Jian Wang
collection Wiley Open Access
contents Manager political preferences and company investor bases Hongrui Feng Yanhuang Huang Betty Simkins Jian Wang Financial Review AbstractWe investigate how the personal political preferences of top managers shape the investor base of firms. Based on the risk‐aversion attitude of firm decisions that rely on conservative political ideologies, we find that Republican managers tend to maintain a lower leverage level; invest less in tangible assets and R&D to pursue near‐term profitability; and maintain a high quality of information disclosure to increase stock liquidity. We demonstrate that firms led by Republican managers can attract more transient institutions. This relationship becomes stronger during financially stressful periods and is robust after considering the moderating role of managerial discretion and potential endogeneity. 10.1111/fire.12413 http://onlinelibrary.wiley.com/termsAndConditions#vor
doi_str_mv 10.1111/fire.12413
format Artículo Open Access
id wiley_oa_10_1111_fire_12413
institution Wiley Open Access
license_str_mv http://onlinelibrary.wiley.com/termsAndConditions#vor
publishDate 2024
publisher Wiley
record_format wiley_oa
spellingShingle Manager political preferences and company investor bases
Hongrui Feng
Yanhuang Huang
Betty Simkins
Jian Wang
Financial Review
Manager political preferences and company investor bases Hongrui Feng Yanhuang Huang Betty Simkins Jian Wang Financial Review AbstractWe investigate how the personal political preferences of top managers shape the investor base of firms. Based on the risk‐aversion attitude of firm decisions that rely on conservative political ideologies, we find that Republican managers tend to maintain a lower leverage level; invest less in tangible assets and R&D to pursue near‐term profitability; and maintain a high quality of information disclosure to increase stock liquidity. We demonstrate that firms led by Republican managers can attract more transient institutions. This relationship becomes stronger during financially stressful periods and is robust after considering the moderating role of managerial discretion and potential endogeneity. 10.1111/fire.12413 http://onlinelibrary.wiley.com/termsAndConditions#vor
title Manager political preferences and company investor bases
topic Financial Review
url https://onlinelibrary.wiley.com/doi/10.1111/fire.12413