Capital allocation and delegation of decision-making authority within firms

• 成果类型: Article
• 署名作者: Graham, John R.; Harvey, Campbell R.; Puri, Manju
• 署名单位: Duke University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2014.10.011
• 发表日期: 2015
• 页码: 449-470
• 关键词: CEOs; executives; capital structure; Mergers and Acquisitions; PAYOUT; Corporate investment; Gut feel

摘要

We use a unique data set that contains information on more than 1,000 Chief Executive Officers (CEOs) and Chief Financial Officers (CFOs) around the world to investigate the degree to which executives delegate financial decisions and the circumstances that drive variation in delegation. Delegation does not appear to be monolithic; instead, our results show that it varies across corporate policies and also varies with the personal characteristics of the CEO. We find that CEOs delegate financial decisions for which they need the most input, when they are overloaded, and when they are distracted by recent acquisitions. CEOs delegate less when they are knowledgeable (long-tenured or with a finance background). Capital is allocated based on gut feel and the personal reputation of the manager running a given division. Finally, corporate politics and corporate socialism affect capital allocation in European and Asian firms. (C) 2014 Elsevier B.V. All rights reserved.