Powerful CEOs and Their Impact on Corporate Performance
Renee B. Adams
University of New South Wales; Financial Research Network (FIRN); European Corporate Governance Institute (ECGI)
University of Illinois at Urbana-Champaign; National Bureau of Economic Research (NBER)
London School of Economics & Political Science (LSE) - Department of Finance; European Corporate Governance Institute (ECGI); Centre for Economic Policy Research (CEPR)
The Review of Financial Studies, Vol. 18, Issue 4, pp. 1403-1432, 2005
Executives can only impact firm outcomes if they have influence over crucial decisions. On the basis of this idea, we develop and test the hypothesis that firms whose CEOs have more decision-making power should experience more variability in performance. Focusing primarily on the power the CEO has over the board and other top executives as a consequence of his formal position and titles, status as a founder, and status as the board`s sole insider, we find that stock returns are more variable for firms run by powerful CEOs. Our findings suggest that the interaction between executive characteristics and organizational variables has important consequences for firm performance.
Keywords: brain metastases, HRQoL, stereotactic radiosurgeryAccepted Paper Series
Date posted: February 29, 2008
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo6 in 0.500 seconds