Do Executives Exhibit Fixed Effects on Firm‐Level Stock Price Crash Risk? Evidence From CEOs and CFOs

This paper investigates whether individual CEOs and CFOs have fixed effects on firm‐level future stock price crash risk. We find that both CEOs and CFOs exhibit such fixed effects, and these effects remain robust across various tests. Additionally, we observe that CEOs' fixed effects are stronger than those of CFOs. And there is some marginal evidence that the executives' fixed effects are less pronounced in firms with better information environment quality. Finally, consistent with the influence of managers' fixed effects, we find that CEOs' professional qualifications (e.g., MBA, JD, and CPA) and CFOs' family status and military experience are associated with stock price crash risk.