The Impact of CEO’s Career Concerns on a Firm’s Investment Efficiency: Experiment Research in Vietnam

Abstract

This chapter investigates the impact of CEO’s career concerns on a firm’s investment efficiency. The research data include 78 companies listed on HNX and HOSE as well as 13 state-owned enterprises and 65 private enterprises from 2010 to 2017. Using the FGLS regression method, the study finds that older CEOs are prone to invest more efficiently and more cautiously. In addition, most newly appointed CEOs often invest below the optimal level, as they are more concerned with their reputation than a firm’s growth opportunities.