Star CEOs and investment efficiency: Evidence from China

被引：1
|
作者：
Zhang, Lida [1 ]
Cai, Wenwu [2 ,3 ]
机构：
[1] Xian Univ Finance & Econ, Business Sch, Xian, Peoples R China
[2] Nanjing Univ Aeronaut & Astronaut, Coll Econ & Management, Nanjing, Peoples R China
[3] Nanjing Univ Aeronaut & Astronaut, Jiangjunlu Campus,29,Jiangjun Rd, Nanjing, Jiangsu, Peoples R China
来源：
PACIFIC-BASIN FINANCE JOURNAL | 2023年 / 82卷
基金：
中国国家自然科学基金;
关键词：
Star CEOs; Overinvestment; Investment inefficiency; Media coverage; CORPORATE GOVERNANCE; ANALYST COVERAGE; OVERCONFIDENCE; REPUTATION; INFORMATION; CELEBRITY; QUALITY; BURDEN; MEDIA; FIRM;
D O I：
10.1016/j.pacfin.2023.102145
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This study investigates whether star chief executive officers (CEOs) make more efficient investment decisions after winning a prestigious media award. Using data from Chinese A-share listed firms, we find that CEO awards significantly reduce the probability of corporate overinvestment and mitigate the magnitude of investment inefficiency; this effect is more pronounced for CEOs with high monetary compensation and in firms with weak internal governance and loose external monitoring. Additional evidence shows that star CEOs attract more media coverage than matched CEOs after winning awards, and CEO awards improve investment efficiency by reducing information asymmetry and enhancing reputation incentives. Collectively, our findings suggest that media-granted CEO awards encourage winning CEOs to boost their investment efficiency by reducing overinvestment.
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收藏
页数：18
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