TY - JOUR
T1 - War-experienced CEOs and corporate policies
T2 - Evidence from the Korean war
AU - Choi, Sanghak
AU - Jung, Hail
AU - Kim, Daejin
N1 - Publisher Copyright:
© 2020 Elsevier B.V.
PY - 2021/6
Y1 - 2021/6
N2 - We investigate the relationship between traumatic war experiences of chief executive officers (CEOs) and their corporate decisions. Using the Korean war event, we find that CEOs exposed to the war in their earlier lives tend to be conservative in corporate policies. Among the war-experienced CEOs, we also find that those who have witnessed large-scale massacres exhibit more conservative behavior. Moreover, war-experienced CEOs make more conservative decisions during a period of financial crisis or when they have ownership. In summary, our results show that early-life exposure to traumatic experiences significantly induces CEOs to be risk-averse.
AB - We investigate the relationship between traumatic war experiences of chief executive officers (CEOs) and their corporate decisions. Using the Korean war event, we find that CEOs exposed to the war in their earlier lives tend to be conservative in corporate policies. Among the war-experienced CEOs, we also find that those who have witnessed large-scale massacres exhibit more conservative behavior. Moreover, war-experienced CEOs make more conservative decisions during a period of financial crisis or when they have ownership. In summary, our results show that early-life exposure to traumatic experiences significantly induces CEOs to be risk-averse.
KW - CEO characteristics
KW - Corporate behavior
KW - Corporate policies
UR - https://www.scopus.com/pages/publications/85099515057
U2 - 10.1016/j.ememar.2020.100790
DO - 10.1016/j.ememar.2020.100790
M3 - Article
AN - SCOPUS:85099515057
SN - 1566-0141
VL - 47
JO - Emerging Markets Review
JF - Emerging Markets Review
M1 - 100790
ER -
