Journal
JOURNAL OF CORPORATE FINANCE
Volume 47, Issue -, Pages 88-109Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.jcorpfin.2017.09.006
Keywords
Career concerns; CEO age; Real investments; Restructuring; Census data
Categories
Funding
- ICPSR
- NSF [ITR-0427889]
Ask authors/readers for more resources
We examine how real investment decisions of firms are affected by their CEOs' career concerns. Relative to their older counterparts, younger CEOs are more likely to enter new lines of businesses and exit from existing ones. Younger CEOs undertake bolder expansions and divestments, which lead to significant increases and decreases in firm size, respectively. Younger CEOs also prefer to grow through acquisitions than de novo investments. However, such busier investment style of the younger CEOs appears not to hurt firm efficiency. Additional results also shed light on how CEO favoritism distorts capital allocation within firms. (C) 2017 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available