Powerful CEOs and Their Impact on Corporate Performance

Adams, Renee B., Almeida, Heitor and Ferreira, Daniel (2005) Powerful CEOs and Their Impact on Corporate Performance. The Review of Financial Studies, 18 4: 1403-1432. doi:10.1093/rfs/hhi030

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Author Adams, Renee B.
Almeida, Heitor
Ferreira, Daniel
Title Powerful CEOs and Their Impact on Corporate Performance
Journal name The Review of Financial Studies   Check publisher's open access policy
ISSN 0893-9454
Publication date 2005
Sub-type Article (original research)
DOI 10.1093/rfs/hhi030
Volume 18
Issue 4
Start page 1403
End page 1432
Total pages 30
Place of publication Cary, N.C
Publisher Oxford University Press for the Society for Financial Studies
Language eng
Subject 150201 Finance
Abstract Executives can only impact firm outcomes if they have influence over crucial decisions. On the basis of this idea, we develop and test the hypothesis that firms whose CEOs have more decision-making power should experience more variability in performance. Focusing primarily on the power the CEO has over the board and other top executives as a consequence of his formal position and titles, status as a founder, and status as the board’s sole insider, we find that stock returns are more variable for firms run by powerful CEOs. Our findings suggest that the interaction between executive characteristics and organizational variables has important consequences for firm performance.
Keyword CEO ownership
Executive characteristics and organizational variables
Firm Performance
Q-Index Code C1

Document type: Journal Article
Sub-type: Article (original research)
Collections: UQ Business School Publications
Excellence in Research Australia (ERA) - Collection
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Citation counts: TR Web of Science Citation Count  Cited 173 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 245 times in Scopus Article | Citations
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Created: Fri, 05 May 2006, 19:44:38 EST