IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v58y2022i4p1089-1102.html
   My bibliography  Save this article

CEO Military Background and Investment Efficiency

Author

Listed:
  • Irfan Ullah
  • Hong-Xing Fang
  • Mohib Ur Rahman
  • Amjad Iqbal

Abstract

We identify an unexplored attribute of the CEO associated with corporate investment efficiency – military experience. We hypothesize that military experienced CEOs tend to reduce agency conflicts, are less likely to be self-interested, and have a higher tendency to take value-enhancing projects which lead to higher investment efficiency. We test our core hypotheses using a sample of Pakistani firms from 2009 to 2017 and find that CEOs’ with military experience have a positive influence on investment efficiency. This positive effect is more pronounced in reducing underinvestment problems, in the presence of strong competition, and when CEO has higher incentives, but weaker for state-owned firms. These conclusions remain valid to alternative measures, after addressing endogeneity issues, and additional analyses. Overall, our research advances the literature by providing new evidence that CEO military experience can have a significant influence on corporate decisions.

Suggested Citation

  • Irfan Ullah & Hong-Xing Fang & Mohib Ur Rahman & Amjad Iqbal, 2022. "CEO Military Background and Investment Efficiency," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(4), pages 1089-1102, March.
    • Handle: RePEc:mes:emfitr:v:58:y:2022:i:4:p:1089-1102
    DOI: 10.1080/1540496X.2021.1937115
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2021.1937115
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2021.1937115?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:mes:emfitr:v:58:y:2022:i:4:p:1089-1102. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    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.