IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v71y2025ics1544612324014119.html
   My bibliography  Save this article

CEO financial background and corporate financialization

Author

Listed:
  • Kang, Dan
  • Xu, Jiahao
  • Tong, Qiye
  • Li, Jiayan

Abstract

Corporate financialization has become increasingly predominant; however, the impact of chief executive officers’ (CEOs’) characteristics on this trend remains underexplored. Although past studies have examined executive backgrounds, the effect of CEOs’ financial expertise on entity enterprises’ financialization levels is unclear. This study examined how CEOs’ financial backgrounds affect corporate financialization in Chinese A-share listed companies from 2008 to 2022. Using panel data and statistical techniques, we found that CEOs with financial backgrounds significantly promote corporate financialization. This effect is primarily mediated through increased managerial overconfidence and mitigated corporate financing constraints. The impact is more pronounced in non-state-owned and low-cash-flow firms. Our findings contribute to understanding how executive characteristics shape corporate financial strategies and offer insights for optimizing corporate governance and decision-making processes in an increasingly financialized business environment.

Suggested Citation

  • Kang, Dan & Xu, Jiahao & Tong, Qiye & Li, Jiayan, 2025. "CEO financial background and corporate financialization," Finance Research Letters, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:finlet:v:71:y:2025:i:c:s1544612324014119
    DOI: 10.1016/j.frl.2024.106382
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324014119
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.106382?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    CEO'S financial background; Corporate financialization; Overconfidence; Financing constraint; Chinese listed company;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:71:y:2025:i:c:s1544612324014119. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.