#2312. CEO experience and corporate financing decisions: Evidence from a natural experiment in China

September 2026publication date
Proposal available till 30-05-2025
5 total number of authors per manuscript5020 $

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Journal’s subject area:
Finance;
Economics and Econometrics;
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Abstract:
We investigate whether CEOs experience regarding an economic boom affect corporate financing decisions. Economic booming affects individual risk preferences and decision behavior for those who grew up during the reform process. We find that Reform-and-Opening CEOs, who experience the reform and open-up era early in life, implement more aggressive capital structure policies and maintain higher leverage compared to Planned Economy CEOs. Furthermore, we determine that Reform-and-Opening CEOs tend to conduct debt issuance more frequently to cover financing needs as they can better deal with the liquidity risk of debt financing and confront the pressures arising from frequent monitoring by the debt markets.
Keywords:
Corporate financing decisions; Early growth experiences; Prosperous era; Reform and opening-up

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