Evidence on managerial entrenchment effects on firm value

Ben Sita, Bernard; Dah, Abdallah M.; Hallak, Waddah

Evidence on managerial entrenchment effects on firm value

Ben Sita, Bernard; Dah, Abdallah M.; Hallak, Waddah

URI: http://hdl.handle.net/10725/3839

URL: http://www.inderscienceonline.com/doi/pdf/10.1504/IJFSM.2013.056313

DOI: http://dx.doi.org/10.1504/IJFSM.2013.056313

Date: 2016-05-19

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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.

Citation:

Ben Sita, B., Dah, A. M., & Hallak, W. (2013). Evidence on managerial entrenchment effects on firm value. International Journal of Financial Services Management, 6(2), 93-104.