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The diversification-performance relationship in Spanish firms : does the CEO´S behaviour style matter?

Year: 2008

Type: article

Abstract: The agency-stewardship theoretical framework posits that CEOs may choose to act as agents or as stewards. CEOs as agents are economically rational individuals driven by self-interest, whereas CEOs as stewards are self-actualizing individuals that behave pro-organizationally. Our study extends this framework to analyze whether the CEO/s behavior style affects the diversification-performance relationship. After applying Heckman/s method on a sample of Spanish firms, our results verify that diversification affects positively on firm performance and such effect is significantly strong when this strategy is managed and implemented by a CEO inclined to behave as steward.

Source: RePEc: Research Papers in Economics

Authors: Almudena Martínez Campillo, Roberto Fernández Gago

Language: English

Topic: Corporate Finance and Governance

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2853218

FWCI:

Cites: 21

Cited by: 6

Related to: 10