Cronqvist, Henrik; Makhija, Anil K.; Yonker, Scott E. - Institute for Financial Research (SIFR) - 2009
We find that firms behave remarkably similarly to how their CEOs behave personally when it comes to leverage choices. We start our analysis by compiling a comprehensive sample of home purchases and financings among S&P 1,500 CEOs. Debt financing in a CEO’s most recent home purchase is used as...