Document Type
Report
Key Takeaways
Firm-level decisions about real options, investments that open or preserve future opportunities that may or may not materialize, can sometimes be influenced by a CEOs personal interests. • CEOs who are younger and newer to their firm invest more heavily in the long-term strategy of investing in the flexibility of real options. • Long-term incentives and institutional ownership help align the interests of investors and the CEO, reducing the effects of CEO characteristics on real options investments.
Publication Date
2020
Source
Lee, J. M., Park, J. C., & Folta, T. B. (2018). CEO career horizon, corporate governance, and real options: The role of economic short-termism. Strategic Management Journal, 39, 2703-2725. doi: 10.1002/smj.2929
Disciplines
Business
Copyright
© 2020, University of South Carolina
Publication Info
Lee, J. M., Park, J. C., & Folta, T. B. (2018). CEO career horizon, corporate governance, and real options: The role of economic short-termism. Strategic Management Journal, 39, 2703-2725. doi: 10.1002/smj.2929, 2020.