By collecting the hometown information of financial officials, and the data of provincial governors and secretaries of the provincial Communist Party of China (CPC) in China from 2001 to 2017, we have proved the causality relationship among financial officials' hometown identity, financial development and the promotion of local officials. Empirical results show that financial officials' hometown identity significantly increases the promotion probability of provincial governors and secretaries of the provincial CPC committee. We also confirmed the positive relationship between financial officials' hometown identity and financial development. This may be because financial officials prefer their hometown when allocating financial resources. It is further found that financial development plays an intermediary role between the financial officials' hometown identity and local officials' promotion.
We analyzed the impact of the supervisory capability of the supervisory board and the incentive to the supervisory board on stock price crash risk. We found that the exercise quality of the members of the supervisory board will affect stock price crash risk. The improvement of their education degree can inhibit the risk of the stock price crash, and there is a negative correlation between the average age of the members and stock price crash risk. In terms of supervision incentives, the higher the shareholding ratio of the supervisory board and the higher the proportion of unpaid supervisors, the lower the stock price crash risk.
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