Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/194760 
Year of Publication: 
2018
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 6 [Issue:] 1 [Publisher:] Taylor & Francis [Place:] Abingdon [Year:] 2018 [Pages:] 1-15
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
Using a sample of listed Indian manufacturing companies, this study examines the role of chief executive officer's (CEO's) personal characteristics like age, tenure, education, and career experience in the determination of investment decisions of the firm. The dynamic panel data model estimation, more specifically the system generalized method of moments estimation results reveal a negative relation between CEO's age and corporate investment. CEO's financial education is positively associated with investment decisions. The investment cash flow sensitiv- ity analysis posits that CEO's age and financial education reduce the sensitivity of investment with respect to cash flow. The results are robust across different periods, defined on the basis of crises. In times of financial crisis, we document that firm's liquidity and age, CEO's career experience and tenure turn out to be significant de- terminants of corporate investment. This paper provides an out-of-sample evidence of the role of CEO's personal characteristics on the determination of corporate investment, which is an unexplored issue from an emerging market perspective.
Subjects: 
CEO age
cash flow
career experience
chief executive officer
corporate investment
financial education
generalized method of moments
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size
625.06 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.