RESEARCH ARTICLE
CEO political ideology and risk factor disclosure
Jiwoo Seo,
Adam Esplin,
Yun Ke,
Corresponding Author
Jiwoo Seo
Dr. Sam Pack College of Business, Tarleton State University, Stephenville, Texas, USA
Correspondence
Jiwoo Seo, Dr. Sam Pack College of Business, Tarleton State University, Stephenville, TX, USA.
Email: [email protected]
Search for more papers by this authorAdam Esplin
Woody L. Hunt College of Business, The University of Texas at El Paso, El Paso, Texas, USA
Search for more papers by this authorYun Ke
Woody L. Hunt College of Business, The University of Texas at El Paso, El Paso, Texas, USA
Search for more papers by this authorJiwoo Seo,
Adam Esplin,
Yun Ke,
Corresponding Author
Jiwoo Seo
Dr. Sam Pack College of Business, Tarleton State University, Stephenville, Texas, USA
Correspondence
Jiwoo Seo, Dr. Sam Pack College of Business, Tarleton State University, Stephenville, TX, USA.
Email: [email protected]
Search for more papers by this authorAdam Esplin
Woody L. Hunt College of Business, The University of Texas at El Paso, El Paso, Texas, USA
Search for more papers by this authorYun Ke
Woody L. Hunt College of Business, The University of Texas at El Paso, El Paso, Texas, USA
Search for more papers by this authorFirst published: 18 November 2024
Abstract
We examine whether and how CEO political ideology affects risk factor disclosure. Using CEO political contributions to proxy for ideology, we find that firms with Republican-leaning CEOs provide less risk factor information than those with non-Republican-leaning CEOs. Our findings are robust using a propensity score-matched sample, entropy balancing, and a two-stage residual inclusion approach. The impact of political ideology on risk factor disclosure is stronger when the CEO has more power over corporate decision-making and is mitigated by higher litigation risk. Our results suggest that politically conservative CEOs prioritise certainty and security, leading them to safeguard confidential information or avoid negative publicity by being transparent about company risks.
Open Research
DATA AVAILABILITY STATEMENT
Data available from public sources identified in the text.
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