We study the managerial labor market's ability to discriminate between good and bad managerial performance. Using a sample of failed and non-failed Texas banks (matched by geographic location and size), we find that the context of job loss affects the manager's ability to regain comparable...

We examine the labor market consequences borne by executives who remain at financially distressed firms relative to those who flee to another employer to avoid the stigma of failure. Our study makes two contributions. First, we document an ex ante dimension of executive labor markets unaccounted...