Anil Makhija, Ohio State University
(Episode 424; 9 minutes 20) A word of warning - if your CEO is steam rolling a highly leveraged approach to business it might be as much to do with his/her personal traits as it is to do with sound business thinking.
On BTalk today I talk to Anil Makhija from the Fisher College of Business at the Ohio State University. Anil has co-authored a report “What Does CEOs’ Personal Leverage Tell Us About Corporate Leverage?”
Their conclusion is that there is a strong relationship between personal and business leverage decisions. Is this a warning to companies that their corporate governance is too weak and key decisions are being made unilaterally by the CEO.
