Financial experts on the top management team: Do they reduce investment inefficiency?
نویسندگان
چکیده
We examine the effect of top management team (TMT) professional finance experience on firm investment efficiency. Top managers with a career background in help reduce deviations from level warranted by fundamentals. Reductions inefficiencies are achieved financial expert using project-specific rather than company-wide, discount rates for project evaluation and facilitating debt equity issuance at lower costs. Greater efficiency due to expertise TMT improves performance. demonstrate that these improvements driven collective solely chief executive officers.
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ژورنال
عنوان ژورنال: Journal of Business Finance & Accounting
سال: 2021
ISSN: ['1468-5957', '0306-686X']
DOI: https://doi.org/10.1111/jbfa.12575