IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v58y2022i13p3711-3725.html
   My bibliography  Save this article

Impact of Managerial Discretion “Stranglehold” on Enterprises Investment Efficiency: Based on Heterogeneous Stochastic Frontier Model

Author

Listed:
  • Weitao Shen
  • Chen Yang
  • Binyun Huang

Abstract

This study examined how managerial discretion “stranglehold” influences enterprise investment efficiency (IE) using a heterogeneous stochastic frontier model of 2010–2019 data of listed companies in the Shanghai and Shenzhen A-share markets. CEO’s salary and stockholding can improve IE, but cannot reduce investment risk (IR). CEO duality and redundant resources neither improve IE nor reduce IR. Organizational inertia can reduce IR but not IE. Capital intensity increases IR whereas environmental richness reduces it; both cannot improve IE. Constrained managerial discretion brings investment expenditures to 15–25% below optimal. Relatively, large, non-state-owned, and manufacturing enterprises have higher IE and lower IR.

Suggested Citation

  • Weitao Shen & Chen Yang & Binyun Huang, 2022. "Impact of Managerial Discretion “Stranglehold” on Enterprises Investment Efficiency: Based on Heterogeneous Stochastic Frontier Model," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(13), pages 3711-3725, October.
    • Handle: RePEc:mes:emfitr:v:58:y:2022:i:13:p:3711-3725
    DOI: 10.1080/1540496X.2022.2068410
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2022.2068410
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2022.2068410?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:mes:emfitr:v:58:y:2022:i:13:p:3711-3725. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    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.