Managerial expertise, corporate decisions and firm value: Evidence from corporate refocusing

Huang, Sheng

doi:10.1016/j.jfi.2014.04.003

Cited by 32 publications

(23 citation statements)

References 66 publications

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“…an important background factor and its significant impact on firms' strategy adoption has been supported by various empirical evidence. Different types of CEOs' functional experience have been examined such as engineering and scientific backgrounds (Malmendier and Tate 2005), financial expertise (Custódio and Metzger 2014), and industry-specific career experience (Huang 2014;Custódio and Metzger 2013;Orens and Reheul 2013). Notably, a recent trend in the business environment is a substantial growth in the percentage of CEOs with diverse career backgrounds and experiences (Crossland et al 2014).…”

Section: Accepted Manuscriptmentioning

confidence: 99%

“…Previous research examines various CEO characteristics such as age (Serfling 2014;Orens and Reheul 2013), education (King et al 2016), early-life experiences (Malmendier et al 2011), psychological traits (e.g., overconfidence (Huang et al 2016;Malmendier et al 2011;Tate 2008, 2005), and risk attitudes (Cain and McKeon 2016;Graham et al 2013)), specific managerial skills , and managers' fixed effects (Bertrand and Schoar 2003). In terms of CEOs' work experience, prior studies investigate functional experience (Custódio and Metzger 2014;Malmendier and Tate 2005), industry expertise (Huang 2014;Custódio and Metzger 2013;Orens and Reheul 2013), and career variety (Hu and Liu 2015;Crossland et al 2014). Those studies largely link CEOs' characteristics and experiences with corporate strategic decisions.…”

Section: Accepted Manuscriptmentioning

confidence: 99%

“…Along with cognitive abilities, personal traits, and observable demographic backgrounds, functional experience represents an important factor suggested by the upper echelons theory as having crucial implications for managerial decision-making. Prior studies document the significant impacts of different types of CEOs' past work experience on corporate strategy adoption such as engineering and scientific backgrounds (Malmendier and Tate 2005), financial expertise (Custódio and Metzger 2014), and industry-specific career experience (Huang 2014;Custódio and Metzger 2013;Orens and Reheul 2013). Rather than focusing on particular work experience, we attempt to investigate the variety in career backgrounds of CEOs.…”

Section: Ceos' Managerial Ability and Ipo Survivalmentioning

confidence: 99%

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Specialist CEOs and IPO survival

Gounopoulos

Pham

2018

Journal of Corporate Finance

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This study examines the influence of specialist CEOs on the probability of failure and survivability of initial public offering (IPO) firms. We construct a generalist skills index based on CEOs' past employment history in order to classify CEOs into specialist and generalist ones. Specialist CEOs pursue a career in particular functional roles, firms and industry sectors, as opposed to generalist CEOs who accumulate their work experience through various positions, firms and industries. We uncover strong evidence that IPO firms with a specialist CEO have a lower probability of failure and a longer time to survive in subsequent periods following the offering. The findings suggest that specialist managerial ability has significant implications for post-issue performance of newly listed firms. Additionally, specialist CEOs may have incentives that are more aligned with those of the firm and its shareholders; thus, they are more likely to enhance the viability of IPO firms for a longer period of time.

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Section: Accepted Manuscriptmentioning

confidence: 99%

Section: Accepted Manuscriptmentioning

confidence: 99%

Section: Ceos' Managerial Ability and Ipo Survivalmentioning

confidence: 99%

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Specialist CEOs and IPO survival

Gounopoulos

Pham

2018

Journal of Corporate Finance

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“…All of these areas are closed in a radically dangerous rejection of the apparatus of the exact sciences and can hardly be attributed to the field of basic or applied sciences, and clearly and steadily to a political and philosophical orientation with obvious tendencies of transformation into semi-theological teachings of a semiphilosophical or pseudo-technical and technological sense. Practical experience has shown [4], [5], that a significant proportion of managers, researchers, and students experience enormous difficulties in correctly identifying management goals and even in relation to fairly trivial management situations [6]. It is obvious that the priority of the management area in the economic sphere will not only be preserved [7] but will also drastically increase in the future.…”

Section: Literature Overviewmentioning

confidence: 99%

Economic and mathematical methods for assessing expertise of specialists of enterprises

Сухорукова¹,

Fomin²

2019

Proceedings of the 1st International Scientific Practical Conference "The Individual and Society in the Modern Geopolitical Env

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The article is devoted to the development of a mechanism for adapting specialists of industrial institutions, ensuring their competitiveness and leadership in the field of management. The scientific novelty of the research lies in the development of an adaptive system for the development of specialists to ensure the competitiveness of enterprises in order to improve the quality of the workforce for employers and to create effective intelligent management technologies. To conduct the study, a systematic approach was chosen and a comparative analysis of the directions of the research of Russian and European economists in the field of human capital was used. The economic and mathematical methods proposed by us for assessing the competitiveness of specialists at enterprises contribute to the replenishment of the labour market by professionals who possess the most up-to-date competences in their work activities and who are seeking to improve their skills.

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“…In general, a CEO passes several milestones and career steps, which is why CEOs are age, on average, 50 years or older (Chemmanur et al, 2009;Kaplan et al, 2012;Custódio and Metzger, 2014;Graham et al, 2015;Pan et al 2015;Dittmar and Duchin, 2016). Finance literature defines expert knowledge in a certain industry, when someone has gained experience in leading positions in that specific industry (Custódio & Metzger, 2013;S. Huang, 2014;Wang, Xie, & Zhu, 2015).…”

Section: Professional and Life Experiencementioning

confidence: 99%

Managerial Style – A Literature Review and Research Agenda

Lopatta¹,

Tideman²,

Böttcher³

et al. 2019

IBR

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This literature review provides an overview of existing studies in the area of managerial style and its effect on firms’ strategic decisions and performance. It highlights which managers’ characteristics have been considered as determinants for managerial style so far and provides potential avenues for future research. After analyzing the content of all articles that were published in seven top-tier journals in the area of finance and banking between 2000 and 2016, the articles on managerial style were included in this literature review and categorized according to the main manager characteristic of investigation. The paper illustrates how similar characteristics are measured differently, and how different measurements of manager’s influence the managerial style−firm strategy relationship differentially. We provide avenues for future research in the area of managerial style, that is, future research may investigate board member’s characteristics at a more aggregated level (board level). Also, future research may shed more light on the argumentation of whether managers’ individual style influences the firm’s corporate decision or whether managers endogenously choose the firm due to their individual characteristics that match with the firm’s strategy and vice versa. This study is interesting for firms that aim to find a manager or director who fits well to its own strategy. Although there is a rapidly growing literature on managerial style, there is yet no literature review that analysis research themes and strings on managerial style in finance journals.

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Managerial expertise, corporate decisions and firm value: Evidence from corporate refocusing

Cited by 32 publications

References 66 publications

Specialist CEOs and IPO survival

Specialist CEOs and IPO survival

Economic and mathematical methods for assessing expertise of specialists of enterprises

Managerial Style – A Literature Review and Research Agenda

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