Presenter: Fynn Sowinski, AU

Title: Financial Behavioral Consistency: Debt Preferences of Danish Executives

Abstract: This paper contributes further evidence on the consistency of financing decisions by managers across their private and corporate realm. Utilizing unique register-based data on private and public firms in Denmark, I show a persistent and robust correlation between personal and corporate leverage of CEOs in SMEs. The effect is dependent on the financial education, ownership stake, and the power of the CEO. Further evidence suggest that this consistency holds for other members of the top-management-team, specifically those in Finance-related positions. Questions remain about the economic identification of the effect, i.e., how much the effect is driven by the imprinting of personal beliefs and preferences of managers on firm policies, or manager-firm matching.

PhD presentation as part of mandatory 1st or 3rd year presentation. The time is extended to one hour; the presenter has 40 minutes for the presentation, 5-10 minutes for the discussant, and 5-10 minutes for questions.

Organizers: Stefan Hirth and Anders Merrild Posselt