Credit risk assessment and executives’ legal expertise
نویسندگان
چکیده
Abstract We study whether firms that are led by chief executive officers (CEOs) with law degrees (lawyer CEOs) have different credit ratings and costs of debt from other firms. Our sample consists Standard & Poor’s 1500 1992 to 2020, 9.2% which lawyer CEOs. find these better ratings, compared On average, their cost is 10% lower than CEOs without legal backgrounds. results robust specifications, sampling methods, controls, such as firm CEO characteristics. identify two ways expertise translates into higher ratings: associated a future volatility stock returns reduction in information risk. The decreased business risk financial reporting 5% auditing fees for
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ژورنال
عنوان ژورنال: Review of Accounting Studies
سال: 2022
ISSN: ['1380-6653', '1573-7136']
DOI: https://doi.org/10.1007/s11142-022-09699-9