IDEAS home Printed from https://ideas.repec.org/a/bla/jbfnac/v53y2026i1p578-608.html

Corporate General Counsels and Investment Efficiency: Novel Evidence

Author

Listed:
  • Nader Atawnah
  • Michael Michael
  • Arman Eshraghi
  • Rashid Zaman
  • Muhammad J. Ali

Abstract

We examine whether the presence of corporate general counsels (GCs) is associated with investment efficiency using both conditional and unconditional regressions. Utilizing a large sample of publicly listed US firms, we find that GCs are associated with higher investment in environments prone to underinvestment and lower investment in environments where overinvestment is likely. Firms with GCs also display less deviation from predicted investment levels, supporting the GC gatekeeper role. We further demonstrate that GCs reduce information asymmetry, which in turn improves access to capital and ultimately enhances investment efficiency. Additional tests reveal that certain GC characteristics, including age, tenure, and executive rank, enhance investment efficiency. Moreover, we find that CEO expertise complements the influence of GCs, as skilled CEOs and GCs work synergistically to improve decision‐making and address investment inefficiencies. Finally, the impact of GCs is particularly significant in the post‐SOX period, underscoring the importance of regulatory oversight.

Suggested Citation

  • Nader Atawnah & Michael Michael & Arman Eshraghi & Rashid Zaman & Muhammad J. Ali, 2026. "Corporate General Counsels and Investment Efficiency: Novel Evidence," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 53(1), pages 578-608, February.
    • Handle: RePEc:bla:jbfnac:v:53:y:2026:i:1:p:578-608
    DOI: 10.1111/jbfa.70031
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jbfa.70031
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jbfa.70031?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jbfnac:v:53:y:2026:i:1:p:578-608. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0306-686X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.