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.
| Original language | English |
|---|---|
| Article number | 102037 |
| Peer-reviewed scientific journal | Journal of Corporate Finance |
| Volume | 69 |
| Number of pages | 28 |
| ISSN | 0929-1199 |
| DOIs | |
| Publication status | Published - 08.07.2021 |
| MoE publication type | A1 Journal article - refereed |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 17 Partnerships for the Goals
Keywords
- 512 Business and Management
- CEO mobility
- corporate policy risk
- shareholder value
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