Article ID Journal Published Year Pages File Type
5089122 Journal of Banking & Finance 2013 14 Pages PDF
Abstract
► We examine the quality of the firm's investment decisions. ► The similarity between compensation and firm leverage ratios is a key factor. ► A larger leverage gap leads to more investment distortions. ► Managers distort investment decisions to increase the value of their portfolio.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Capital structure, executive compensation, and investment efficiency
Authors
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