Birds of a feather: Value implications of political alignment between top management and directors

Lee, Jong-Sub; Lee, Kwang J.; Nagarajan, Nandu J.

doi:10.1016/j.jfineco.2014.02.004

Cited by 125 publications

(79 citation statements)

References 36 publications

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“…In support of this argument, Fracassi and Tate (2012), Hwang and Kim (2009), and Lee et al (2014) find that U.S. boards where the CEO has social ties with the other directors in the form of shared networks, similar regional or educational background or similar political orientationare associated with weaker corporate governance and reduced firm value. Ngyuen (2012) finds comparable results for large French firms.…”

Section: Similarities Among Directors and Corporate Governancementioning

confidence: 97%

“…We also contribute to the emerging literature on the effects of (dis)similarities between the CEO and the board of directors. For the U.S., Fracassi and Tate (2012), Hwang and Kim (2009), and Lee et al (2014) provide evidence that social ties between the CEO and the other directors reduce firm value as they weaken the intensity of monitoring by the board. Ngyuen (2012) finds similar results for large French firms.…”

mentioning

confidence: 99%

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Mind the gap: The age dissimilarity between the chair and the CEO

Goergen

Limbach

Scholz

2015

Journal of Corporate Finance

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Section: Similarities Among Directors and Corporate Governancementioning

confidence: 97%

mentioning

confidence: 99%

Mind the gap: The age dissimilarity between the chair and the CEO

Goergen

Limbach

Scholz

2015

Journal of Corporate Finance

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“…In support of this argument, Fracassi and Tate (2012), Hwang and Kim (2009), and Lee et al (2014) and Zajac (1995a) find that CEOs who are able to influence the nomination process tend to appoint directors with similar demographic characteristics. 5 They find that demographic similarity is associated with increased CEO compensation.…”

Section: Similarities Among Directors and Corporate Governancementioning

confidence: 98%

“…For the U.S., Fracassi and Tate (2012), Hwang and Kim (2009), and Lee et al (2014) provide evidence that social ties between the CEO and the other directors reduce firm value as they weaken the intensity of monitoring by the board.…”

mentioning

confidence: 99%

Mind the Gap: The Age Dissimilarity between the Chair and the CEO

2015

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A B S T R A C TWe study the relation between the chair of the board of directors and the CEO. We argue that substantial age dissimilarity between the two  giving rise to cognitive conflict  increases board monitoring and firm value for firms with greater monitoring needs. We find evidence for our hypothesis using data on German two-tier boards. German law mitigates endogeneity concerns as it prevents CEO duality and also restricts CEO power in other ways. Additional identification attempts include CEO-firm and chair-firm fixed effects, random effects, dynamic panel data estimations, and the use of the 2007 financial crisis as an exogenous shock to monitoring needs. We find that during the crisis, when fast decision making and managerial discretion were needed, the link between age dissimilarity and firm value changed.

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“…When political convictions have been examined, most studies define the tendency to a political direction based on charity for a certain party (Di Giuli & Kostovetsky, 2014;Hutton et al, 2014;Lee, Lee, & Nagarajan, 2014). On the one hand, firms with Republican CEOs exhibit lower debt−equity ratios and lower investments in Property Plant and Equipment (hereafter: PPE) as well as in Research and Development (hereafter: R&D) compared to firms with Democrats as CEOs (Hutton et al 2014).…”

Section: Private Behavior and Political Convictionmentioning

confidence: 99%

Managerial Style – A Literature Review and Research Agenda

Lopatta¹,

Tideman²,

Böttcher³

et al. 2019

IBR

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This literature review provides an overview of existing studies in the area of managerial style and its effect on firms’ strategic decisions and performance. It highlights which managers’ characteristics have been considered as determinants for managerial style so far and provides potential avenues for future research. After analyzing the content of all articles that were published in seven top-tier journals in the area of finance and banking between 2000 and 2016, the articles on managerial style were included in this literature review and categorized according to the main manager characteristic of investigation. The paper illustrates how similar characteristics are measured differently, and how different measurements of manager’s influence the managerial style−firm strategy relationship differentially. We provide avenues for future research in the area of managerial style, that is, future research may investigate board member’s characteristics at a more aggregated level (board level). Also, future research may shed more light on the argumentation of whether managers’ individual style influences the firm’s corporate decision or whether managers endogenously choose the firm due to their individual characteristics that match with the firm’s strategy and vice versa. This study is interesting for firms that aim to find a manager or director who fits well to its own strategy. Although there is a rapidly growing literature on managerial style, there is yet no literature review that analysis research themes and strings on managerial style in finance journals.

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Birds of a feather: Value implications of political alignment between top management and directors

Cited by 125 publications

References 36 publications

Mind the gap: The age dissimilarity between the chair and the CEO

Mind the gap: The age dissimilarity between the chair and the CEO

Mind the Gap: The Age Dissimilarity between the Chair and the CEO

Managerial Style – A Literature Review and Research Agenda

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