This paper analyzes the market reaction to CEO turnover announcements in the presence of information frictions. We find that the market reaction to forced CEO turnover announcements is negatively related to the level of asymmetric information between a firm and its investors. No such relation...

This paper examines the governance role of hedge fund activists by analyzing the impact of these activists on CEO turnover, CEO pay, and CEO pay-performance link in targeted companies. Using the difference-in-difference approach, we first find significantly higher CEO turnover following hedge...

Regulators, credit rating agencies, and securities analysts consider poor succession planning a significant business risk. However, there is surprisingly little academic research about how succession planning affects CEO turnover decisions. Using comprehensive data for U.S. public firms, we...

Following CEO turnovers, US firms adjust real business activities to manage earnings downward (REM bath). This effect is most pronounced in firms with low levels of institutional ownership. REM baths early in CEOs' tenure can be confounded with legitimate adjustments to business activities....

We study changes in independent director behavior and labor market outcomes after experiencing a forced CEO turnover. We find they are more willing to fire CEOs of underperforming firms, hire outside CEOs after a firing and encourage better board meeting attendance by fellow directors. We also...

We examine the response of prosocial employees and boards of directors to corporate misconduct. We develop several proxies for the presence of prosocial employees and directors, based on the density of social networks and social capital in the county of the firms' headquarters and companies'...

We examine the roles board of directors can play in CEO succession planning, by asking the questions, whom should the firm choose as replacement CEOs in unexpected CEO turnover, and what is the impact of this decision on shareholder wealth? More specifically, we build on the director expertise...