The Impact of CEO IT Ability on Bank Loan Terms

Autor:	Tracie S. Frost, Zhijian He, Jiwon Nam, Robert Pinsker
Rok vydání:	2023
Předmět:	Human-Computer Interaction Information Systems and Management Management of Technology and Innovation Accounting Software Information Systems Management Information Systems
Zdroj:	Journal of Information Systems. 37:7-37
ISSN:	1558-7959 0888-7985
Popis:	Although the role that information technology (IT) executives’ expertise has in firm outcomes is well documented, little empirical work investigates the effect of the IT ability of non-IT executives on firm outcomes. We apply upper echelons theory and create a unique measure of chief executive officer (CEO) IT ability to empirically investigate its impact on bank loan pricing and nonpricing terms. Examining a sample of firms between 2002 and 2017, we find that CEO IT ability is associated with lower cost of debt, less collateral, fewer loan covenants, and fewer credit rating downgrades. Further, we show that our results are not due to high tech firms and are incremental to firm-level IT capability. Our results extend upper echelons theory and suggest that IT ability is an important CEO characteristic that can be influential in improving lending outcomes.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::12132aa375551adbd82b9e389730b294 https://doi.org/10.2308/isys-2021-020 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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