This article examines how the benefits to managers of corporate control affect the relationship between the ownership and the stock returns of acquiring firms. At low levels of managerial ownership, agency costs of equity (such as perquisite consumption) reduce acquirer returns. At high levels...

I examine empirically whether the executive labor market helps to slot managers with higher education quality into jobs where they can obtain greater returns from their human capital skills. Comparing a sample of regulated gas and electric firms with manufacturing firms, I find that utilities...