Party school CEO and credit ratings: evidence from Chinese state-owned-enterprises

Xudong He; Yusheng Yang; Servanna Mianjun Fu; Cheng Xu

doi:10.1080/13504851.2024.2425398

Party school CEO and credit ratings: evidence from Chinese state-owned-enterprises

Xudong He, Yusheng Yang, Servanna Mianjun Fu, Cheng Xu

Norwich Business School

Research output: Contribution to journal › Article › peer-review

Abstract

This paper examines whether credit rating agencies consider CEOs with Party school education as a risk factor in credit assessments using Chinese SOEs data from 2006 to 2020. Our findings suggest Party school CEOs are associated with higher credit ratings and exhibit lower risk-taking, resulting in less volatile performance. This research offers initial evidence on the benefits and costs of hiring politically connected CEOs, specifically Party school-educated ones.

Original language	English
Journal	Applied Economics Letters
DOIs	https://doi.org/10.1080/13504851.2024.2425398
Publication status	E-pub ahead of print - 7 Nov 2024

Keywords

CEO characteristics
credit rating
Party school
political connection
risk-taking

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10.1080/13504851.2024.2425398

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abstract = "This paper examines whether credit rating agencies consider CEOs with Party school education as a risk factor in credit assessments using Chinese SOEs data from 2006 to 2020. Our findings suggest Party school CEOs are associated with higher credit ratings and exhibit lower risk-taking, resulting in less volatile performance. This research offers initial evidence on the benefits and costs of hiring politically connected CEOs, specifically Party school-educated ones.",

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Party school CEO and credit ratings: evidence from Chinese state-owned-enterprises

Abstract

Keywords

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