CEO mobility and corporate policy risk
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A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
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Date
2021-08
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Language
en
Pages
28
Series
Journal of Corporate Finance, Volume 69
Abstract
Career concerns can limit a manager's willingness to take risks, which can lead to excessive policy conservatism. An increase in a CEO's ability and willingness to change jobs (CEO mobility) can diversify her human capital and reduce her conservatism. We derive several CEO mobility measures and relate them to a policy riskiness index that captures the overall risk embedded in a firm's corporate policies. We find a strong positive relation between CEO mobility and the riskiness of corporate policies. We also link external regulatory shocks that constrain labor mobility to significant drops in corporate risk-taking.Description
Keywords
CEO mobility, Corporate policy risk, Shareholder value
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Citation
Korkeamäki, T & Colak, G 2021, ' CEO mobility and corporate policy risk ', Journal of Corporate Finance, vol. 69, 102037 . https://doi.org/10.1016/j.jcorpfin.2021.102037