Internal capital markets and CEO power

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dc.contributor.author Boumosleh, Anwar en_US
dc.date.accessioned 2017-07-17T07:10:17Z en_US
dc.date.available 2017-07-17T07:10:17Z en_US
dc.date.copyright 2007 en_US
dc.date.issued 2015-09-15
dc.identifier.issn 1542-8710 en_US
dc.identifier.uri http://hdl.handle.net/10725/5920 en_US
dc.description.abstract This paper examines the relationship between the organizational hierarchy at the highest management level and the allocation of internal financial resources within a firm. A measure of CEO influence is devised that reflects the extent of CEO power over decisions in the firm. I find that diversified firms where decisions are heavily polarized towards the CEO allocate their resources less efficiently than firms where decisions are made by a coalition of top executives. This finding suggests that a diversified firm headed by one powerful CEO is subject to higher effects of rent-seeking behavior and internal power struggles from lower level management than is a coalition of executives making investment decisions. The implications of this finding are consistent with the argument that the diversification discount is a consequence of agency problems existing between layers of management within the firm. en_US
dc.language.iso en en_US
dc.title Internal capital markets and CEO power en_US
dc.type Article en_US
dc.description.version Published en_US
dc.author.school SOB en_US
dc.author.idnumber 200501018 en_US
dc.author.department Department of Finance and Accounting (FINA) en_US
dc.description.embargo N/A en_US
dc.relation.journal Journal of Academy of Business and Economics en_US
dc.journal.volume 7 en_US
dc.journal.issue 1 en_US
dc.keywords Internal Capital Market en_US
dc.keywords CEO Compensation en_US
dc.keywords Organizational Hierarchy en_US
dc.identifier.ctation Boumosleh, A. (2007). Internal capital markets and CEO power. Journal of Academy of Business and Economics, 7(1) en_US
dc.author.email anwar.boumosleh@lau.edu.lb en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url http://www.freepatentsonline.com/article/Journal-Academy-Business-Economics/172011770.html en_US
dc.author.affiliation Lebanese American University en_US

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