Rich Dad Poor Dad ? CEO Private School Background and Firm Risk
Year: 2026
Type: article
Abstract: ABSTRACT We examine the effect of CEO childhood socioeconomic status (SES) on firm risk. Using hand‐collected data on US CEOs' private high‐school attendance as proxy for high‐SES, we find that firms led by high‐SES CEOs exhibit 5.35% lower firm risk. This effect diminishes with CEO tenure, analyst coverage, and institutional ownership, consistent with the market expectations hypothesis. High‐SES CEOs do not differ in corporate risk‐taking, incentives, ability, performance, or crisis management. Our findings support the SES theory, which suggests that socioeconomic background acts as a signal that shapes investor expectations, rather than reflecting differences in CEO behaviour or competence.
Source: European Financial Management
DOI: 10.1111/eufm.70043
Authors: Yifei Bi, Christos Mavrovitis, Chen Yang
Institutions: Henan University, University of Surrey, University College Dublin
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,350
OpenAlex ID: W7134165496