Evidence on managerial entrenchment effects on firm value

We investigate managerial entrenchment effects on firm value. Conditioning investment and Research and Development (R&D) spending on a managerial entrenchment indicator, we find that under managerial entrenchment investment and spending tend to be higher. Under some simplifying assumptions, we f...

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Bibliographic Details
Main Author: Ben Sita, Bernard (author)
Other Authors: Dah, Abdallah M. (author), Hallak, Waddah (author)
Format: article
Published: 2016
Online Access:http://hdl.handle.net/10725/3839
http://dx.doi.org/10.1504/IJFSM.2013.056313
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
http://www.inderscienceonline.com/doi/pdf/10.1504/IJFSM.2013.056313
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Summary:We investigate managerial entrenchment effects on firm value. Conditioning investment and Research and Development (R&D) spending on a managerial entrenchment indicator, we find that under managerial entrenchment investment and spending tend to be higher. Under some simplifying assumptions, we find that overinvestment is greater under capital investment than under R&D spending.