Business, Management and Accounting
4 years ago

Highly educated CEOs drive firms to use more leverage, study finds.

Journal of Critical Reviews
DOES CEO EDUCATION INFLUENCE THE TARGET LEVERAGE AND SPEED OF ADJUSTMENT?

Paper Summary

CEO education influences a company's debt levels and how quickly they adjust towards their target debt. Highly educated CEOs tend to use less total and long-term debt but more short-term debt. They also adjust faster towards their target short-term debt when financial costs are high. This shows that CEO education plays a significant role in shaping a company's financial decisions.

Related papers

Economics, Econometrics and Finance
8 years ago

Monetary policy tightening reduces investment for highly leveraged firms in India.

Infrastructure Impact
Islamic Banking
1 view
Business, Management and Accounting
8 years ago

Monetary policy hits hard on highly leveraged firms' investments.

Corporate Governance
Tax Avoidance
Banking Finance
Business, Management and Accounting
2 years ago

Social connections with major customers increase supplier leverage in relationships.

Corporate Governance
Economic Behavior
Tax Evasion