CEO decision horizon and firm performance: An empirical investigation |
| |
| Authors: | Murad Antia Christos Pantzalis Jung Chul Park |
| |
| Institution: | 1. Mahidol University International College (MUIC), Nakhon Pathom, Thailand;2. Pennsylvania State University, School of Graduate Professional Studies, Malvern, PA 19355, United States;3. King Abdu-Alaziz University (KAU), Jeddah, Saudi Arabia;1. National Central University, Taiwan, ROC;2. National University of Singapore, Singapore;1. College of Business Administration, University of Texas-Pan American, 1201 W. University Dr., Edinburg, TX 78539, United States;2. School of Business, University of Wisconsin-Milwaukee, 3202 N. Maryland Ave., Milwaukee, WI 53201, United States;3. Neeley School of Business, Texas Christian University, TCU Box 298530, Fort Worth, TX 76129, United States;4. Luiss Guido Carli University, Department of Business and Management, Viale Pola, 12-00198 Rome, Italy |
| |
| Abstract: | We investigate the effect of top managers' myopia on firms' market valuation. We devise a measure of expected CEO tenure as a proxy for the length of CEO decision horizon. After accounting for the endogenous nature of CEO horizon, our empirical tests show that shorter CEO horizon is associated with more agency costs, lower firm valuation and higher levels of information risk. The results are consistent with the notion that a short CEO decision horizon is indicative of preference for investments that offer relatively faster paybacks at the expense of long-term value creation. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
