CEO Characteristics, Corporate Decisions and Firm Value: Evidence from Corporate Refocusing

• Main Author: HUANG, Sheng
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: CEO characteristics; managerial expertise; refocus; diversification; divestiture; Business Administration, Management, and Operations; Organizational Behavior and Theory
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3054; https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1537458
• Institution: Singapore Management University

This paper investigates how managerial expertise, specifically, industry expertise, affects firm value through divestiture. Using CEOs’ industry experience along their career path as a measure of their industry expertise, I find that CEOs in diversified conglomerates are more likely to divest divisi...