Evidence on managerial entrenchment effects on firm value

Bernard Ben Sita, Abdallah Dah and Waddah Hallak

International Journal of Financial Services Management, 2013, vol. 6, issue 2, 93-104

Abstract: We investigate managerial entrenchment effects on firm value. Conditioning investment and Research and Development (R%D) spending on a managerial entrenchment indicator, we find that under managerial entrenchment investment and spending tend to be higher. Under some simplifying assumptions, we find that overinvestment is greater under capital investment than under R%D spending.

Keywords: managerial entrenchment; overinvestment; Tobin's q; R%D spending; financial services management; research and development; capital investment. (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijfsmg:v:6:y:2013:i:2:p:93-104

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