How do financial expert CEOs adjust capital structure?

Chang Gong ()
Additional contact information
Chang Gong: ESCP Europe - Ecole Supérieure de Commerce de Paris

Post-Print from HAL

Abstract: This paper studies the effect of CEOs with financial work experience on the firm's dynamic capital structure adjustments. The paper finds that financial expert CEOs adjust leverage faster towards their targets. This positive effect is more pronounced when those CEOs are more powerful and when the firm faces high information asymmetry. Further evidence supports the existence of two possible channels through which the financial expert CEOs' affects leverage adjustments: knowledge and ability. Overall, the results enhance our understanding of the managerial effects on corporate decisions and the dynamic trade-off theory of capital structure.

Date: 2021-06-15
References: Add references at CitEc
Citations:

Published in FMA 2021: 24th Financial Management Association European Conference, Jun 2021, Online, Cyprus

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03844101

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().