Review of Financial Studies Vol. 26 No. 3 2013
Managers with and without Style: Evidence Using Exogenous Variation
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.]
- Volume
- 26
- Issue
- 3
- Pages
- 567-601
- Sources
- bibtex:phds-export.bib