We investigate whether the financial market's reaction to managerial departure announcements reflects managerial reputation and whether this reaction is related to the manager's subsequent labor market progress and firm performance. We show that abnormal stock returns around the announcement of...

We investigate whether the financial market's reaction to managerial departure announcements reflects managerial reputation and whether this reaction is related to the manager's subsequent labor market progress and firm performance. We show that abnormal stock returns around the announcement of...

Do CEOs really matter? Do cross-sectional differences in firm performance and CEO pay reflect differences in CEO ability? Examining CEO departures over 1992-2002, we first find that the stock price reaction upon departure is negatively related to the firm's prior performance and to the CEO's...