Abstract

http://ssrn.com/abstract=1761523
 
 

Citations (5)



 


 



Career Concerns and the Busy Life of the Young CEO


Xiaoyang Li


Cheung Kong Graduate School of Business

Angie Low


Nanyang Technological University - Division of Banking & Finance

Anil K. Makhija


Ohio State University (OSU) - Department of Finance

March 2014

Charles A. Dice Center Working Paper No. 2011-4
Fisher College of Business Working Paper No. 2011-03-004

Abstract:     
We compare real investment decisions of younger and older Chief Executive Officers (CEOs). We find that younger CEOs undertake more active, bolder investment activities. They are more likely to enter new lines of business and exit from existing ones. They prefer growth through acquisitions, while older CEOs prefer to build new plants. This busier investment style of the younger CEOs appears not to hurt firm efficiency since younger CEOs are associated with equally high plant-level efficiency compared to older CEOs. Taken together, our results are consistent with the hypothesis that career concerns matter for CEOs’ real investment decisions.

Number of Pages in PDF File: 58

Keywords: Career Concerns, CEO Age, Real Investments, Restructing

JEL Classification: G34

working papers series


Download This Paper

Date posted: February 15, 2011 ; Last revised: April 10, 2014

Suggested Citation

Li, Xiaoyang and Low, Angie and Makhija, Anil K., Career Concerns and the Busy Life of the Young CEO (March 2014). Charles A. Dice Center Working Paper No. 2011-4; Fisher College of Business Working Paper No. 2011-03-004. Available at SSRN: http://ssrn.com/abstract=1761523 or http://dx.doi.org/10.2139/ssrn.1761523

Contact Information

Xiaoyang Li
Cheung Kong Graduate School of Business ( email )
Oriental Plaza, Tower E3
One East Chang An Avenue
Beijing, 100738
China
Angie Low
Nanyang Technological University - Division of Banking & Finance ( email )
Singapore, 639798
Singapore
Anil K. Makhija (Contact Author)
Ohio State University (OSU) - Department of Finance ( email )
2100 Neil Avenue
Columbus, OH 43210-1144
United States
614-292-1899 (Phone)

Feedback to SSRN


Paper statistics
Abstract Views: 1,434
Downloads: 287
Download Rank: 59,800
Citations:  5

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.250 seconds