•  1
    Locality Stereotype, CEO Trustworthiness and Stock Price Crash Risk: Evidence from China
    with Leilei Gu and Yuchao Peng
    Journal of Business Ethics 1-25. forthcoming.
    Exploring the locality stereotype with respect to CEO’s trustworthiness, we find that firms whose CEOs are from more reputable hometowns have a higher likelihood of stock price crashes, indicating the presence of a CEO “Trust Exploitation” effect, i.e. a high-trust identity does not guarantee managerial ethics; to the contrary, it could tempt CEOs to abuse outsiders’ trust, camouflage their misconducts and conceal adverse information more severely. The effect of CEO’s perceived trustworthiness o…Read more