Article2013

Managers with and without Style: Evidence Using Exogenous Variation

C. Edward Fee · Charles J. Hadlock · Joshua R. Pierce

422 citations0/0 files storedReview of Financial Studies

No readable copy stored yet — this record is metadata only.

Corporate Finance and Governance Financial Markets and Investment Strategies Organizational Management and Leadership

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.

Citations in this library

Stored only when both papers are in the corpus — 422 citations exist upstream.

References

2001Econometric Analysis of Cross Section and Panel Data 2008Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches 1988Outside directors and CEO turnover 2003Managing with Style: The Effect of Managers on Firm Policies 1986The Hubris Hypothesis of Corporate Takeovers 2005CEO Overconfidence and Corporate Investment 2008Who makes acquisitions? CEO overconfidence and the market's reaction☆1989Management entrenchment

Cited by

2016Pilot CEOs and corporate innovation 2017Shaped by their daughters: Executives, female socialization, and corporate social responsibility 2017Do General Managerial Skills Spur Innovation?2016Shaped by Booms and Busts: How the Economy Impacts CEO Careers and Management Styles 2017A Review of the Archival Literature on Audit Partners 2016Military experience and corporate tax avoidance 2016What's in an education? Implications of CEO education for bank performance

Imported from OpenAlex (CC0) — nothing here is generated.