Financial expert CEOs: CEO׳s work experience and firm׳s financial policies

Custódio, Cláudia; Metzger, Daniel

doi:10.1016/j.jfineco.2014.06.002

Cited by 478 publications

(351 citation statements)

References 59 publications

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“…As the chair-CEO age difference may change due to chair and CEO changes, which are likely to correlate with the firm's performance and number of board meetings, these two controls are necessary to separate the (persistent) effect of the variables measuring the chair-CEO age dissimilarity from the (one-off) effects of changes at the top of the firm. Free float (of the firm's voting shares), R&D expenses as a fraction of total revenues (R&D/Sales), return on equity (ROE), Sales growth (i.e., the nominal growth rate over the past two years), Stock volatility (i.e., the standard deviation of daily stock returns over the past two years) and Total assets as used in the existing literature (e.g., Andres, 2008;Bebchuk et al, 2009;Bhagat andBolton, 2008, Custódio andMetzger, 2014).…”

Section: Methodology and Measures For The Chair-ceo Age Dissimilaritymentioning

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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Section: Methodology and Measures For The Chair-ceo Age Dissimilaritymentioning

confidence: 99%

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

2015

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“…As an example of endogenously acquired skills, Bertrand and Schoar (2003) show that managers with an MBA degree follow more aggressive management strategies such as higher leverage or more market-driven investing. Custódio and Metzger (2014) find that firms headed by CEOs with a career background in finance hold less cash and more debt and make more share repurchases. In an efficient labor market, we would expect good managers to deliberately acquire these skills, knowing that they are valued by the market.…”

Section: Where Do Managerial Styles Come From?mentioning

confidence: 93%

Does the Market Value CEO Styles?

Schoar

Zuo

2016

American Economic Review

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We study how investors perceive the skill set that different types of CEOs bring into their companies. We compare CEOs who started their careers during a recession with other CEOs. We show that the announcement return around the appointment of a recession CEO is very significant and positive, and this positive market reaction is driven by cases where a recession CEO replaces a non-recession CEO. Our results indicate that the market assigns a positive and economically meaningful value to a recession CEO, suggesting that there is a limited supply of these types of CEOs in the executive labor market.

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“…Essa pressuposição baseia-se na visão tradicional das Finanças Corporativas de que a estrutura de capital gera valor para a empresa ao longo do tempo (DURAND, 1952). Desse modo, pretende-se contribuir com a literatura teórica e empírica sobre estrutura de capital no Brasil ao incluir o estilo de gestão dos CEO's como determinante relevante para a composição do endividamento, conforme sugerem alguns trabalhos internacionais (BERTRAND; SCHOAR, 2003;FRANK;GOYAL, 2007;MALMENDIER;TATE, 2005;BEBER;FABBRI, 2012;CRONQVIST;MAKHIJA;YONKER, 2012;YIM, 2013;CUSTÓDIO;METZGER, 2014) e nacionais (BARROS; SILVEIRA, 2008).…”

Section: Nas Evidências Empíricas Sobre Estrutura De Capital As Caraunclassified

Relevância das características dos CEO’s na estrutura de capital de empresas listadas no IBrX-100 da BM&FBOVESPA

et al. 2018

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Com base no pressuposto teórico dos modelos de agência que postula sobre a relação entre estrutura de capital corporativa e estilo de gestão dos CEO's, o objetivo deste artigo é analisar quais características individuais dos CEO's quanto à idade, sexo, tempo de mandato na empresa, presença de relação familiar, tipo de remuneração e curso de graduação obtido influenciam na estrutura de capital corporativa das empresas listadas no IBrX-100 da BM&FBOVESPA no período de 2009 a 2013, mantendo fatores relacionados às características da firma constantes. A metodologia aplicada foi dados em painel dinâmico de dois estágios com estimador de GMM sistêmico. Os resultados encontrados pelo modelo de regressão sugeriram que os CEO's tendem a imprimir seu estilo de gestão, uma vez que o "curso de graduação" foi a variável mais significativa, demonstrando que CEO's com curso de graduação na área de exatas (engenharias) e na área de negócios (contabilidade, economia e administração) apresentaram maior alavancagem no longo prazo. Based on theoretical assumptions used by agency

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Financial expert CEOs: CEO׳s work experience and firm׳s financial policies

Cited by 478 publications

References 59 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

Does the Market Value CEO Styles?

Relevância das características dos CEO’s na estrutura de capital de empresas listadas no IBrX-100 da BM&FBOVESPA

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