CEO generational differences, corporate leverage and political connections: evidence from Malaysia

Mei Yee Lee, Chwee Ming Tee, Mei Sen Pak, Abdul Majid

Research output: Contribution to conferenceAbstract


This paper examines the impact of generational differences between the Chief Executive Officer (CEO) with regards to corporate leverage. Further, we investigate whether this relationship is exacerbated or attenuated by political connections. Using a Malaysian dataset for the period 2005 to 2016, we find that CEO Builders (Generation X) are positively associated with corporate leverage, while no significant results are obtained for CEO Seekers (Baby Boomers). In addition, the positive association is exacerbated if the Gen X CEOs are connected to top politicians in Malaysia. Our additional analyses show that the results are largely driven by the duration of political connections and the ownership structure of the politically-connected firms. This suggests that heterogeneous political connections influence CEO Builders? decisions on corporate leverage.
Original languageEnglish
Number of pages1
Publication statusPublished - 2020
EventWorld Finance & Banking Symposium 2020 - Virtual, Riga, Latvia
Duration: 5 Dec 20206 Dec 2020


ConferenceWorld Finance & Banking Symposium 2020

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