We investigate whether the concentration of power in the hands of individuals characterized as business leaders influences the variability of corporate performance. We do so by proposing an original method to estimate the concentration of power that takes into account both the individual...

This paper offers solutions to mitigate the problems associated with the endogeneity issues of explanatory variables faced by corporate finance researchers who analyze observational data via regression methods. Such problems may bias the causality inferences between variables, a fundamental goal...