Source:
Proceedings of the 41st Atlantic Schools of Business conference, University of Prince Edward Island, 2011, pp 446-459
Abstract:
Longitudinal data from the US cellular telecoms industry between 1991 and 2009 suggest that high prestige CEOs take higher risks in capital expenditures, and less risk with R&D expenditures. No relationship was found with M&A expenditures. This suggests that CEOs only use their prestige to affect operational or internal investments.