Lan Yiyang, PhD candidate of the Department of Accounting in 2018, and Professor Yu Lisheng of the Accounting Development Research Center of Xiamen Universityco-authored the paper "Fame is difficult to Live up to: Star ceos and Negative Information Hiding" in the Journal of Management Science, No. 5, 2021.

This paper takes the CEO awards published by the media from 2009 to 2016 as the proxy variable for star ceos, and the negative skewness of stock return as the proxy variable for hiding negative information, and adopts the double difference method method for analysis. The research results show that: (1) ceos are more likely to hide negative information after being listed, which leads to a significant increase in the negative skewness of stock return in subsequent years; The probability of financial restatements of star ceos increased significantly after they were listed, but the probability of hiding negative information decreased significantly after they dropped out of the list. (2) Mechanism test shows that star CEO inhibits negative information disclosure through management power; (3) Companies with lower earnings quality and more serious agency problems before the list also have a larger increase in negative skew of stock returns, potentially indicating that star ceos with "false names" are more likely to suppress negative information disclosure after becoming famous. These results show that the influence of star ceos on information disclosure supports the "reputation capture hypothesis" rather than the "feather-loving hypothesis". Compared with reputation mechanism and external supervision mechanism, the effective restraint on insiders will have a more critical impact on improving information disclosure.

Lan Yiyang is a 2018 PhD candidate in the Department of Accounting, School of Management, Xiamen University. His supervisor is Professor Yu Lisheng. His research field is Capital market finance and accounting.