CEO power and matching leverage preferences

Timo Korkeamäki; Eva Liljeblom; Daniel Pasternack

doi:10.1016/j.jcorpfin.2017.04.007

CEO power and matching leverage preferences

Timo Korkeamäki, Eva Liljeblom, Daniel Pasternack

Finansiell ekonomi, Helsingfors

Lund University

Forskningsoutput: Tidskriftsbidrag › Artikel › Vetenskaplig › Peer review

33 Citeringar (Scopus)

Sammanfattning

We study the effect of managerial power on CEOs’ tendency to imprint their personal leverage preferences upon the firms they manage. Using a unique data source that allows us to measure personal wealth and indebtness in great detail, we find a connection between CEOs’ personal leverage and that of their firms. The connection is driven by the CEOs with a longer tenure and the CEOs who serve in a dual role. The connection is significantly weaker for those CEOs who have a proportion of their personal wealth tied to the firm. Presence of block holders also weakens the connection.

Originalspråk	Engelska
Referentgranskad vetenskaplig tidskrift	Journal of Corporate Finance
Volym	45
Nummer	August
Sidor (från-till)	19-30
Antal sidor	12
ISSN	0929-1199
DOI	https://doi.org/10.1016/j.jcorpfin.2017.04.007
Status	Publicerad - 12.04.2017
MoE-publikationstyp	A1 Originalartikel i en vetenskaplig tidskrift

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512 Företagsekonomi

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10.1016/j.jcorpfin.2017.04.007

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CEO power and matching leverage preferences

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