Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/81056
Title: Managerial Entrenchment and Firm Value: A Dynamic Perspective
Authors: Chang, Xin
Zhang, Hong Feng
Issue Date: 2015
Source: Chang, X., & Zhang, H. F. (2015). Managerial Entrenchment and Firm Value: A Dynamic Perspective. Journal of Financial and Quantitative Analysis, 50(5).
Series/Report no.: Journal of Financial and Quantitative Analysis
Abstract: We examine the impact of managerial entrenchment on firm value using a dynamic model with firm fixed effects. To estimate the model, we employ the long-difference technique, which is shown by our simulation to deliver the least biased estimates. Based on a large sample of U.S. companies, we document a significantly negative and causal effect of managerial entrenchment on firm value after taking into account omitted variables, reverse causality, and highly persistent endogenous variables. Additional analysis suggests that the causality running from managerial entrenchment to firm value is more pronounced than that for reverse causality.
URI: https://hdl.handle.net/10356/81056
http://hdl.handle.net/10220/39088
ISSN: 0022-1090
DOI: 10.1017/S0022109015000423
Schools: Nanyang Business School 
Rights: © 2015 Michael G. Foster School of Business, University of Washington. This paper was published in Journal of Financial and Quantitative Analysis and is made available as an electronic reprint (preprint) with permission of Michael G. Foster School of Business, University of Washington. The published version is available at: [http://dx.doi.org/10.1017/S0022109015000423]. One print or electronic copy may be made for personal use only. Systematic or multiple reproduction, distribution to multiple locations via electronic or other means, duplication of any material in this paper for a fee or for commercial purposes, or modification of the content of the paper is prohibited and is subject to penalties under law.
Fulltext Permission: open
Fulltext Availability: With Fulltext
Appears in Collections:NBS Journal Articles

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