The impact of CEO power on corporate capital structure: New evidence from dynamic panel threshold analysis

被引：28
作者：
Chao, Chi Chur [1 ]
Hu, May [1 ]
Munir, Qaiser [2 ]
Li, Tongxia [1 ]
机构：
[1] Deakin Univ, Geelong, Vic, Australia
[2] Univ Malaysia Sabah, Kota Kinabalu, Saga, Malaysia
来源：
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE | 2017年 / 51卷
关键词：
Capital structure; CEO power; Nonlinear relationship; Dynamic panel threshold; INSTRUMENTAL VARIABLE ESTIMATION; AGENCY COSTS; DETERMINANTS; FINANCE; FIRM; OWNERSHIP; PERFORMANCE; GOVERNANCE; DECISIONS; TURNOVER;
D O I：
10.1016/j.iref.2017.05.010
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This study examines the non-linearity between CEO power and corporate capital structure. Previous studies show that firm leverage responds differently to CEO power changes. In order to capture this non-linear relationship, we employ an innovative dynamic panel threshold model, this novel method allows the estimation of threshold effects with panel data even in case of endogenous regressors. Using a panel-dataset of Chinese SMEs from 2009 to 2013, we find that a CEO power threshold exists in the CEO power-firm leverage association. CEO power has a strong positive and statistically significant determinant of firm leverage, in the "low-CEO power" firms. However, at "high-CEO" regime, the impact is negative but insignificant determinant of leverage. The results are robust to alternative measures of leverage and CEO power, as well as additional explanatory variables.
引用
收藏
页码：107 / 120
页数：14
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