(presidential) party to proxy for local firms' proximity to political power. Firms whose headquarters are located in high PAI states … 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 … performance as the boards' assessment of their ability is higher. In evaluating the CEO's quality, economic theory predicts that …, that are outside the CEO's control. Contrary to the prediction, we find that CEOs are rewarded with power for luck. In the …

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 …