Financial experts on the top management team: Do they reduce investment inefficiency?
研究高管团队中具有金融背景的成员如何通过使用项目特定折现率和降低融资成本来减少投资偏离企业基本面的程度，进而提升企业绩效。
Abstract We examine the effect of the top management team (TMT) professional finance experience on firm investment efficiency. Top managers with a career background in finance help reduce deviations of investment from the level warranted by firm fundamentals. Reductions in investment inefficiencies are achieved by financial expert managers using project‐specific rather than company‐wide, discount rates for project evaluation and facilitating debt and equity issuance at lower costs. Greater investment efficiency due to the financial expertise of TMT improves firm performance. We demonstrate that these improvements are driven by the collective expertise of the TMT rather than solely by chief executive officers.