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Modelling the Causal Relationship between Seniority of the CEO in the Enterprise and the Debt in USA

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  • Chafik Kammoun

    (University of Sfax, Tunisia)

  • Younes Boujelbene

    (University of Sfax, Tunisia)

Abstract

This paper develops a model in which the interaction of Seniority of the C.E.O in the enterprise and the debt can be analyzed. Multiple securities arise as optimal in the model. This allows for a meaningful analysis of interaction effects between Seniority of the C.E.O in the enterprise and the debt for a panel of USA firms from 2000 to 2009. There is a predicted (positive) relationship between Seniority of the C.E.O in the enterprise and the debt. Finally, this paper uses the recent developments in the econometrics of non-stationary dynamic panels to reassess the relationship between Seniority of the C.E.O in the enterprise and the debt.

Suggested Citation

  • Chafik Kammoun & Younes Boujelbene, 2012. "Modelling the Causal Relationship between Seniority of the CEO in the Enterprise and the Debt in USA," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 2(2), pages 27-33, April.
    • Handle: RePEc:dug:actaec:y:2012:i:2:p:27-33
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    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/1247/1109
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    References listed on IDEAS

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