CEO power and corporate risk: The impact of market competition and corporate governanceCorporate Governance: An International Review (2019)
While there is no unified theory that can explain the relationship between CEO power and corporate risk, the empirical evidence generally finds a positive association. This study argues that market competition and corporate governance play critical roles in influencing this relationship. Using a large panel of non‐financial US corporations for the period 1992–2015, I find that CEO power is positively associated with total and idiosyncratic measures of risk. However, this positive association remains significant only when market competition is high or corporate governance is strong.
- corporate governance
Citation InformationShahbaz A Sheikh. "CEO power and corporate risk: The impact of market competition and corporate governance" Corporate Governance: An International Review Vol. 27 Iss. 5 (2019) p. 358 - 377
Available at: http://works.bepress.com/shahbaz_sheikh/24/