firm value to capital expenditure under various levels of CEO power. The paper uses two measures of CEO power and finds … that the greater the power of the CEO the less the increase in market value for a given increase in capital spending. The …

(presidential) party to proxy for local firms' proximity to political power. Firms whose headquarters are located in high PAI states … cannot rule out indirect political connectedness advantages as an explanation of the PAI effect, our results are consistent … with the notion that proximity to political power has stock return implications because it reflects firms' exposure to …

The optimal view of managerial power theory suggests that corporate boards reward CEOs with power for good firm …, that are outside the CEO's control. Contrary to the prediction, we find that CEOs are rewarded with power for luck. In the … baseline specification, a one standard deviation increase in firm performance due to luck leads to a 3% increase in CEO power …