Nonlinear relationship between CEO power and capital structure: Evidence from China's listed SMEs

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• 作者：Tongxia Li ; ^{toli2400@uni.sydney.edu.au} ; Qaiser Munir ^{qaiser@ums.edu.my} ; Mohd Rahimie Abd Karim ^{rahimie@ums.edu.my}
• 关键词：CEO power ; Capital structure ; Leverage ; Agency theory ; SMEs
• 刊名：International Review of Economics & Finance
• 出版年：2017
• 出版时间：January 2017
• 年：2017
• 卷：47
• 期：Complete
• 页码：1-21
• 全文大小：505 K
• 卷排序：47

文摘

This paper investigates the impact of CEO power on corporate capital structure for a sample of Chinese SMEs. The empirical results show a non-monotonic relationship between CEO power and firm leverage. Firms with less powerful CEOs tend to use high leverage. As CEOs having more power that beyond a certain threshold, firms adopt leverage below optimal.