Scholarlink

<p>Building upon the theories of internal governance and strategic information transmission, the paper strives to examine the relationship between stock liquidity and the degree to which CEOs share executive power and responsibilities with their subordinates. It is found that stock liquidity increases accordingly when the&#xa0;CEO takes the total control or fully delegates to her subordinates, namely when the degree of delegation approaches the two informationally efficient regimes, delegation or centralization. In addition, the regression-based mediating analysis suggests that the liquidity effect driven by the variation of delegation structure is not actively incorporated in stock prices. Accordingly, the portfolio tests demonstrate a strong predictive power of delegation structure for abnormal stock returns. The findings of the study contribute to disentangling the Gordon knot puzzle of top management structure, stock liquidity and firm valuation.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

The nexus of top management structure, stock liquidity and valuation: a puzzle of the Gordian knot

  • 期刊论文

  • 发表日期：

    2025年7月9日

查看全文
  • Yankuo Qiao

摘要

Building upon the theories of internal governance and strategic information transmission, the paper strives to examine the relationship between stock liquidity and the degree to which CEOs share executive power and responsibilities with their subordinates. It is found that stock liquidity increases accordingly when the CEO takes the total control or fully delegates to her subordinates, namely when the degree of delegation approaches the two informationally efficient regimes, delegation or centralization. In addition, the regression-based mediating analysis suggests that the liquidity effect driven by the variation of delegation structure is not actively incorporated in stock prices. Accordingly, the portfolio tests demonstrate a strong predictive power of delegation structure for abnormal stock returns. The findings of the study contribute to disentangling the Gordon knot puzzle of top management structure, stock liquidity and firm valuation.