Earticle

초록

영어

Educational background in Korea can represent personal traits, since academic tracks in the Korean educational system are determined earlier in the individual’s lifetime than in other countries. This study investigates whether CEO educational background affects the firm’s external financing choices. We find that firms with CEOs who majored in science or engineering are less likely to issue equity, and the investment of firms with such CEOs is more responsive to cash flow. We also find that equity issue announcements by firms with such CEOs exhibit more negative market reaction, suggesting that those have bad signals, for instance, poor conditions to issue debt even though they prefer debt to equity. Overall, our study suggests that Korean CEOs’ educational background, particularly science or engineering, is related to managerial confidence, which is the belief that the market undervalues their firms. However, we cannot completely rule out the endogeneity concern arising from CEO-firm matching.

목차

Abstract
Ⅰ. Introduction
Ⅱ. Literature review and Hypothesis development
Ⅲ. Data and Sample selection
Ⅳ. Empirical results
1. CEO educational background and external financing choices
2. Additional tests
3. CEO educational background and post-external financing investment and capital structure
4. CEO educational background and Investment–Cash flow sensitivity
Ⅴ. Conclusion
References

키워드

저자

• Seongjae Mun [ Assistant Professor, Soonchunhyang University ]
• Hyeong Joon Kim [ Ph.D. candidate, KAIST ] Corresponding Author

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  재무연구 [Asian Review of Financial Research]

• 간기

  계간

• pISSN

  1229-0351

• eISSN

  2713-6531

• 수록기간

  1988~2026

• 등재여부

  KCI 등재,SCOPUS

• 십진분류

  KDC 325 DDC 330