Level leverage decisions and manager characteristics

Detalhes bibliográficos
Autor(a) principal: Carvalho, Margarita
Data de Publicação: 2019
Outros Autores: Cerejeira, João
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/1822/61679
http://hdl.handle.net/11328/3478
Resumo: This study assess how manager’s characteristics may influence leverage decisions. Using data from European banks, the results show that younger managers are risk-prone and less conservative in leverage decisions. Moreover, it is observed that for higher levels of leverage more experienced managers tend to increase leverage. This is also true for managers with a longer tenure as they may bring their personal preferences towards risk and in this sense they will be more able to increase leverage. However, this effect differs according to the level of leverage at the manager’s appointment date. The inclusion of the decision horizon seems to validate the idea that a short-term managerial horizon enhances the self-interested behaviour of the manager and this may be reflected on capital structure decisions.
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spelling Level leverage decisions and manager characteristicsQuantile regressionBanksCapital structureManager’s characteristicsThis study assess how manager’s characteristics may influence leverage decisions. Using data from European banks, the results show that younger managers are risk-prone and less conservative in leverage decisions. Moreover, it is observed that for higher levels of leverage more experienced managers tend to increase leverage. This is also true for managers with a longer tenure as they may bring their personal preferences towards risk and in this sense they will be more able to increase leverage. However, this effect differs according to the level of leverage at the manager’s appointment date. The inclusion of the decision horizon seems to validate the idea that a short-term managerial horizon enhances the self-interested behaviour of the manager and this may be reflected on capital structure decisions.Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)2021-04-27T15:57:27Z2019-01-01T00:00:00Z2019info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/1822/61679http://hdl.handle.net/11328/3478engCarvalho, MargaritaCerejeira, Joãoinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-06-15T02:11:58ZPortal AgregadorONG
dc.title.none.fl_str_mv Level leverage decisions and manager characteristics
title Level leverage decisions and manager characteristics
spellingShingle Level leverage decisions and manager characteristics
Carvalho, Margarita
Quantile regression
Banks
Capital structure
Manager’s characteristics
title_short Level leverage decisions and manager characteristics
title_full Level leverage decisions and manager characteristics
title_fullStr Level leverage decisions and manager characteristics
title_full_unstemmed Level leverage decisions and manager characteristics
title_sort Level leverage decisions and manager characteristics
author Carvalho, Margarita
author_facet Carvalho, Margarita
Cerejeira, João
author_role author
author2 Cerejeira, João
author2_role author
dc.contributor.author.fl_str_mv Carvalho, Margarita
Cerejeira, João
dc.subject.por.fl_str_mv Quantile regression
Banks
Capital structure
Manager’s characteristics
topic Quantile regression
Banks
Capital structure
Manager’s characteristics
description This study assess how manager’s characteristics may influence leverage decisions. Using data from European banks, the results show that younger managers are risk-prone and less conservative in leverage decisions. Moreover, it is observed that for higher levels of leverage more experienced managers tend to increase leverage. This is also true for managers with a longer tenure as they may bring their personal preferences towards risk and in this sense they will be more able to increase leverage. However, this effect differs according to the level of leverage at the manager’s appointment date. The inclusion of the decision horizon seems to validate the idea that a short-term managerial horizon enhances the self-interested behaviour of the manager and this may be reflected on capital structure decisions.
publishDate 2019
dc.date.none.fl_str_mv 2019-01-01T00:00:00Z
2019
2021-04-27T15:57:27Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
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dc.identifier.uri.fl_str_mv http://hdl.handle.net/1822/61679
http://hdl.handle.net/11328/3478
url http://hdl.handle.net/1822/61679
http://hdl.handle.net/11328/3478
dc.language.iso.fl_str_mv eng
language eng
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
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dc.publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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