Chintrakarn, Pandej; Jiraporn, Pornsit; Singh, Manohar - In: Applied Economics Letters 21 (2014) 8, pp. 564-568
Motivated by agency theory, we explore how powerful CEOs view leverage. Because of the agency conflict, CEOs may adopt sub-optimal leverage levels that promote their own private benefits at the expense of shareholders. Using Bebchuk <italic>et al.</italic> (2011) CEO pay slice (CPS) to gauge CEO power, we find...