“CEO duality, agency costs, and internal capital allocation efficiency”, with N. Aktas, I. Karasamani and D. Philip, British Journal of Management, pp. 1467-8551, November 2016.
38 Pages · Posted: 7 Nov 2016 · Last revised: 28 Nov 2017 | This study examines the impact of CEO duality on firms’ internal capital allocation efficiency. We observe that when the CEO is also chair of the board, diversified firms make inefficient investments, as they allocate more capital to business segments with relatively low growth opportunities over segments with high growth opportunities.