Business, Management and Accounting
3 years ago

Large shareholders influence CEOs to adjust leverage, impacting Asian economies.

Relationship between CEO characteristics, ownership concentration and speed of adjustment on leverage in selected Asian countries
Mei Shan Chua

Paper Summary

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The article explores how CEO characteristics and ownership concentration affect how quickly companies adjust their debt levels in Asian countries. The researchers found that CEOs' education level can speed up the adjustment process, while their age and experience can slow it down. Large shareholders play a role in influencing CEOs to adjust debt levels more quickly, especially in Malaysia and Singapore. The study also revealed differences in adjustment speeds across different countries in Asia. Overall, the findings suggest that financial markets can offer more financing options to help Asian countries improve their debt management practices.