Revisiting CEO power and firm value

被引：7
|
作者：
Lee, J. [1 ]
Park, J. [1 ]
Park, S. [2 ]
机构：
[1] Korea Adv Inst Sci & Technol, Coll Business, Seoul 130722, South Korea
[2] Georgia Regents Univ, Knox Sch Accountancy, Hull Coll Business, Augusta, GA 30904 USA
来源：
APPLIED ECONOMICS LETTERS | 2015年 / 22卷 / 08期
关键词：
G34; G30; firm value; CEO Pay Slice (CPS); Tobin's q; CEO power; PAY SLICE; DIRECTORS;
D O I：
10.1080/13504851.2014.962216
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
Prior literature associates CEO power with agency problems and documents the negative relationship between CEO power and firm value (e.g., Bebchuk et al., 2011). However, the 'optimal' level of CEO power may differ for every firm and for individual CEO depending on firm and CEO characteristics. In this study, we estimate the normal ('optimal') level of CEO power and show that the association between CEO power and firm value is nonmonotonic. Our results reveal that the normal level of CEO power is positively associated with firm value while excess and deficient CEO power is negatively associated with firm value. Using the residuals from our estimation model of CEO power, we illustrate that our measure of residual CEO power has an inverse U-shaped relationship with firm value.
引用
收藏
页码：597 / 602
页数：6
相关论文
共 50 条
  • [1] CEO power, product market competition and firm value
    Sheikh, Shahbaz
    [J]. RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE, 2018, 46 : 373 - 386
  • [2] CEO Activism and Firm Value
    Mkrtchyan, Anahit
    Sandvik, Jason
    Zhu, Vivi Z.
    [J]. MANAGEMENT SCIENCE, 2023,
  • [3] CEO Tenure and Firm Value
    Brochet, Francois
    Limbach, Peter
    Schmid, Markus
    Scholz-Daneshgari, Meik
    [J]. ACCOUNTING REVIEW, 2021, 96 (06): : 47 - 71
  • [4] Knowledge capital, CEO power, and firm value: Evidence from the IT industry
    Chiu, Junmao
    Chen, Chin-Ho
    Cheng, Chung-Chieh
    Hung, Shih-Chang
    [J]. NORTH AMERICAN JOURNAL OF ECONOMICS AND FINANCE, 2021, 55
  • [5] CEO power and firm opacity
    Koo, KwangJoo
    Kim, Jonghwan
    [J]. APPLIED ECONOMICS LETTERS, 2019, 26 (10) : 791 - 794
  • [6] CEO share ownership and firm value
    Tan R.S.K.
    Chng P.L.
    Tan T.W.
    [J]. Asia Pacific Journal of Management, 2001, 18 (3) : 355 - 371
  • [7] CDS, CEO compensation, and firm value
    Amin, Abu
    Jain, Pawan
    Upadhyay, Arun
    [J]. FINANCE RESEARCH LETTERS, 2022, 46
  • [8] CEO power, corporate social responsibility, and firm value: a test of agency theory
    Li, Frank
    Li, Tao
    Minor, Dylan
    [J]. INTERNATIONAL JOURNAL OF MANAGERIAL FINANCE, 2016, 12 (05) : 611 - 628
  • [9] The impact of environmental, social, and governance disclosure on firm value: The role of CEO power
    Li, Yiwei
    Gong, Mengfeng
    Zhang, Xiu-Ye
    Koh, Lenny
    [J]. BRITISH ACCOUNTING REVIEW, 2018, 50 (01): : 60 - 75
  • [10] Female executives and firm value: the moderating effect of co-CEO power gaps
    Hong, Jiyeun
    Kim, Su-In
    [J]. GENDER IN MANAGEMENT, 2022, 37 (07): : 933 - 949
12345