This study examines whether chief executive officers’ (CEOs’) external labour market competitions affect their firms’ stock price crash risks. Using CEOs’ exposure to the prestigious media-award-winning events of competitor CEOs, we document a significant increase in stock crash risk for firms with award-exposed CEOs, compared with firms without such CEOs, and this treatment effect is attenuated by strong external monitoring and a high-quality information environment, yet exacerbated by CEOs’ similarity with award winners and likelihood of winning the award. We further find that withholding bad news, risk taking and financial misreporting are the possible channels through which competitor CEOs’ award events affect stock price crash risk. Our study sheds new light on the formerly under-researched adverse effects of CEO awards by suggesting that external labour market competition associated with CEO awards plays an important role in influencing extreme downside risk in the equity market.

中文翻译：

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外部劳动力市场竞争和股价崩盘风险：来自竞争对手 CEO 获奖事件的证据

本研究考察了首席执行官 (CEO) 的外部劳动力市场竞争是否会影响其公司的股价崩盘风险。利用 CEO 对竞争对手 CEO 的著名媒体获奖事件的曝光率，我们记录了与没有此类 CEO 的公司相比，拥有获奖 CEO 的公司的股票崩盘风险显着增加，并且这种处理效应因强大的外部环境而减弱监督和高质量的信息环境，但由于 CEO 与获奖者的相似性和获奖的可能性而加剧。我们进一步发现，隐瞒坏消息、承担风险和财务误报是竞争对手 CEO 奖励事件影响股价崩盘风险的可能渠道。