Pilot CEOs and Corporate Cash Holdings

dc.contributor.author Chen, Lili
dc.contributor.author Li, Lingwei
dc.contributor.author Wee, Marvin
dc.date.accessioned 2018-11-27T19:11:01Z
dc.date.available 2018-11-27T19:11:01Z
dc.date.issued 2018-08-29
dc.description.abstract We examine the effect of situation awareness developed from aviation training and experiences on corporate cash policies. We find that firms led by pilot CEOs are more likely to have higher cash holdings and higher market value of cash holdings. The findings suggest that pilot CEOs have greater situation awareness, and that these CEOs are more likely to plan ahead to cope with future liquidity needs. In addition, we find that the level of pilot certification is associated with corporate cash holdings and the value of cash holdings. These findings provide further evidence that situation awareness can be developed through training and aviation experience. We also find that the effect of pilot CEOs on corporate cash holdings is more pronounced for firms with high growth opportunities and firms with financial constraints. These results indicate that pilot CEOs tend to hold more cash when they are aware of future opportunities and risks.
dc.identifier.uri http://hdl.handle.net/10125/59291
dc.subject CEOs
dc.subject Situation awareness
dc.subject Cash holdings
dc.subject Corporate policies
dc.subject Past experiences
dc.subject Managerial styles
dc.title Pilot CEOs and Corporate Cash Holdings
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