Journal ArticleDOI
Managers with and without Style: Evidence Using Exogenous Variation
Reads0
Chats0
TLDR
In a large panel of Compustat firms, the authors found that firm policy changes after exogenous CEO departures do not display abnormally high levels of variability, casting doubt on the presence of idiosyncratic-style effects in policy choices.Abstract:
In a large panel of Compustat firms, we find that firm policy changes after exogenous CEO departures do not display abnormally high levels of variability, casting doubt on the presence of idiosyncratic-style effects in policy choices. After endogenous CEO departures, we do detect abnormally large policy changes. These changes are larger when the firm is likely to draw from a deeper pool of replacement CEO candidates, suggesting the presence of causal-style effects that are anticipated by the board. Our evidence suggests that managerial styles are not transferred across employers and that standard F-tests are inappropriate for identifying style effects. The Author 2013. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved. For Permissions, please e-mail: journals.permissions@oup.com., Oxford University Press.read more
Citations
More filters
Journal ArticleDOI
CEO Connectedness and Corporate Fraud
TL;DR: In this paper, the authors find that connections CEOs develop with top executives and directors through their appointment decisions increase the risk of corporate fraud and increase the likelihood of committing fraud and decrease the likelihood for detection.
Journal ArticleDOI
Financial Expert CEOs: CEO’s Work Experience and Firm’s Financial Policies
Claudia Custodio,Daniel Metzger +1 more
TL;DR: In this paper, the role of CEOs with a career background in finance is studied and it is shown that firms that appoint financial expert CEOs hold less cash and more debt, and engage in more share repurchases.
Posted Content
Shaped by Booms and Busts: How the Economy Impacts CEO Careers and Management Styles
Antoinette Schoar,Luo Zuo +1 more
TL;DR: The authors show that economic conditions when managers enter the labor market have long-run effects on their career paths and managerial styles, and that managers who began their careers during recessions become CEOs more quickly, but at smaller firms.
Journal ArticleDOI
Financial expert CEOs: CEO's work experience and firm's financial policies $
Claudia Custodio,Daniel Metzger +1 more
TL;DR: The authors study CEOs with a career background in finance and find that financial expert CEOs are more financially sophisticated: they are less likely to use one companywide discount rate instead of a project-specific one, they manage financial policies more actively, and their firm investments are less sensitive to cash flows.
Journal ArticleDOI
Pilot CEOs and Corporate Innovation
TL;DR: In this paper, the authors find evidence that CEOs' hobby of flying airplanes is systematically related to innovation success in the firms they manage, and conclude that CEO piloting status captures the personality trait of sensation seeking.
References
More filters
Book
Econometric Analysis of Cross Section and Panel Data
TL;DR: This is the essential companion to Jeffrey Wooldridge's widely-used graduate text Econometric Analysis of Cross Section and Panel Data (MIT Press, 2001).
Journal ArticleDOI
How Much Should We Trust Differences-In-Differences Estimates?
TL;DR: In this article, the authors randomly generate placebo laws in state-level data on female wages from the Current Population Survey and use OLS to compute the DD estimate of its "effect" as well as the standard error of this estimate.
Journal ArticleDOI
Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches
TL;DR: In this article, the authors examine the different methods used in the literature and explain when the different approaches yield the same (and correct) standard errors and when they diverge, and give researchers guidance for their use.
Journal ArticleDOI
Outside directors and CEO turnover
TL;DR: This article examined the relation between the monitoring of CEOs by inside and outside directors and CEO resignations using stock returns and earnings changes as measures of prior performance, and found that there is a stronger association between prior performance and the probability of a resignation.
Journal ArticleDOI
The Hubris Hypothesis of Corporate Takeovers
TL;DR: The hubris hypothesis is advanced as an explanation of corporate takeovers by Jensen and Ruback as mentioned in this paper, who argued that the evidence supports the hubris hypotheses as much as it supports other explanations such as taxes, synergy, and inefficient target management.