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 |