IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v32y2011i3p141-158.html
   My bibliography  Save this article

Transaction cost economics and corporate governance: the case of CEO age and financial stake

Author

Listed:
  • Patrick L. McClelland
  • Jonathan P. O'Brien

Abstract

Agency theory provides a valuable lens for understanding the role and importance of many varied governance mechanisms. We argue that transaction cost economics (TCE) provides a complementary theoretical lens for studying corporate governance because it illuminates the various contingencies that moderate the importance of alternative governance mechanisms. Using agency theory, we argue and find evidence that the confluence of advancing CEO age and large CEO stock holdings will cause the CEO to become overly risk-averse. Moreover, we use TCE to more fully explicate the ensuing performance consequences as well as the contextual factors that critically moderate this relationship. Copyright (C) 2010 John Wiley & Sons, Ltd.

Suggested Citation

  • Patrick L. McClelland & Jonathan P. O'Brien, 2011. "Transaction cost economics and corporate governance: the case of CEO age and financial stake," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 32(3), pages 141-158, April.
    • Handle: RePEc:wly:mgtdec:v:32:y:2011:i:3:p:141-158
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/mde.1520
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ferramosca, Silvia & Allegrini, Marco, 2018. "The complex role of family involvement in earnings management," Journal of Family Business Strategy, Elsevier, vol. 9(2), pages 128-141.
    2. Orens, Raf & Reheul, Anne-Mie, 2013. "Do CEO demographics explain cash holdings in SMEs?," European Management Journal, Elsevier, vol. 31(6), pages 549-563.
    3. Dr. Sonia MOUSSA & Dr. Houssem RACHDI & Aymen AMMERI, 2013. "Governance, Managers’ Entrenchment and Performance: Evidence in French Firms Listed in SBF 120," International Journal of Business and Social Research, LAR Center Press, vol. 3(2), pages 35-48, February.
    4. Gaurav Gupta, 2022. "CEO's age and investment‐cash flow sensitivity," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2212-2224, September.
    5. Chari, Murali D.R. & David, Parthiban & Duru, Augustine & Zhao, Yijiang, 2019. "Bowman's risk-return paradox: An agency theory perspective," Journal of Business Research, Elsevier, vol. 95(C), pages 357-375.
    6. Miller, Danny & Pastoriza, David & Plante, Jean-François, 2019. "Conditioning competitive risk: Competitors’ rank proximity and relative ability," Journal of Economic Psychology, Elsevier, vol. 73(C), pages 161-175.

    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:wly:mgtdec:v:32:y:2011:i:3:p:141-158. 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://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.