CEO mobility and corporate policy risk

Timo Korkeamäki; Gonul Colak

doi:10.1016/j.jcorpfin.2021.102037

CEO mobility and corporate policy risk

Timo Korkeamäki, Gonul Colak

School of Business

Hanken School of Economics

Tutkimustuotos: Lehtiartikkeli › Article › Scientific › vertaisarvioitu

23 Sitaatiot (Scopus)

191 Lataukset (Pure)

Abstrakti

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.

Alkuperäiskieli	Englanti
Artikkeli	102037
Sivumäärä	28
Julkaisu	Journal of Corporate Finance
Vuosikerta	69
Varhainen verkossa julkaisun päivämäärä	8 heinäk. 2021
DOI - pysyväislinkit	https://doi.org/10.1016/j.jcorpfin.2021.102037
Tila	Julkaistu - elok. 2021
OKM-julkaisutyyppi	A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

Pääsy asiakirjaan

10.1016/j.jcorpfin.2021.102037

1-s2.0-S0929119921001590-mainFinal published version, 899 KBLisenssi: CC BY

Siteeraa tätä

@article{7b3101fe965c4173b89403096700d126,

title = "CEO mobility and corporate policy risk",

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.",

keywords = "CEO mobility, Corporate policy risk, Shareholder value",

author = "Timo Korkeam{\"a}ki and Gonul Colak",

year = "2021",

month = aug,

doi = "10.1016/j.jcorpfin.2021.102037",

language = "English",

volume = "69",

journal = "Journal of Corporate Finance",

issn = "0929-1199",

publisher = "Elsevier",

}

TY - JOUR

T1 - CEO mobility and corporate policy risk

AU - Korkeamäki, Timo

AU - Colak, Gonul

PY - 2021/8

Y1 - 2021/8

N2 - 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.

AB - 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.

KW - CEO mobility

KW - Corporate policy risk

KW - Shareholder value

U2 - 10.1016/j.jcorpfin.2021.102037

DO - 10.1016/j.jcorpfin.2021.102037

M3 - Article

SN - 0929-1199

VL - 69

JO - Journal of Corporate Finance

JF - Journal of Corporate Finance

M1 - 102037

ER -

CEO mobility and corporate policy risk

Abstrakti

Pääsy asiakirjaan

Sormenjälki

Siteeraa tätä