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CPA-AGRC Seminar Series - Mariya Ivanova Wealthier

Yesterday is History, Tomorrow is a Mystery: Directors’ and CEOs’ Prior Bankruptcy Experiences and the Financial Risk of their Current Firms

Date & Time

March 26, 2021


Zoom - link provided in reminder email the day before the event

Mariya Ivanova, PhD.

Assistant Professor, Department of Accounting, Stockholm School of Economics; Affiliated Researcher, Mistra Center for Sustainable Markets

Using a large sample of Swedish private firms, we investigate the link between directors’ and CEOs’ prior corporate bankruptcy experiences and the financial risk of their current firms. We find that firms with such directors and CEOs have higher levels of financial risk. In particular, they exhibit more aggressive corporate financial policies, have higher corporate bankruptcy risk, and are subject to higher effective interest rates. Overall, our findings are in line with the personal risk preference explanation, showing that both corporate bankruptcy experiences and current corporate risk-taking reflect stable personal risk preferences. The presence of directors with prior bankruptcy experiences could thus be interpreted as a signal of higher financial risk for their firms. This insight is of relevance to regulators, lenders, and corporate decision makers.

About the Speaker

Mariya Ivanova joined the Department of Accounting in September 2017. She holds a PhD in Business Administration and Management (major Financial Accounting) from Bocconi University, Milan, Italy and MSc in Accounting from Northern Illinois University, IL, USA. Her research interests lie at the intersection of financial reporting, corporate governance, financial fraud, and debt contracting. Prior to joining the Department, she was a lecturer in Accounting and Financial Statement Analysis at Bocconi University and spent a term as a visiting researcher at the London School of Economics, London, UK. 

Mariya's current research projects are broadly related to two main research themes:  i) the effects of corporate governance on firm behavior and outcomes; and ii) financial reporting and governance of firms operating in the extractive industries (mining and oil and gas). Since September 2017, Mariya is a recipient of the Tore Browaldhs foundation fellowship. 

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