Asymmetric information is a fundamental friction that results in mismatches and efficiency losses in the labor market. In this paper, we posit that more disaggregated financial disclosure from a CEO candidate's prior employer can help the hiring firm better assess the possible fit between its...

I study disclosure choices in job postings and the trade-off between two channels: detailed postings inform and attract optimal job applicants (i.e., a labor market channel) but could also inform competitors in labor and product markets (i.e., a proprietary costs channel). First, I provide...

The persistently low pay‐performance sensitivity between executive compensation and firm performance has puzzled both practitioners and academics. We propose a hybrid model that incorporates both moral hazard and adverse selection problems to explain this puzzle. We argue that the managerial...

Research Question/Issue: This study examines the extent to which newly-hired migrating executives affect shareholder reaction at their arriving firms. We draw upon the information economics and upper echelons literatures to explain how (1) deviant behavior and ability information cues from an...

We exploit the staggered introduction of CPA Mobility provisions in the United States to study the effects of spatial licensing requirements on the labor market for accounting professionals. Specifically, we examine whether the removal of licensing‐induced geographic barriers affects CPA wages...

Treating receipt of a national-level CFO award as a shock to job-market status, I use a regression discontinuity design (RDD) to investigate the role of the CFO labor market in enhancing financial reporting quality. Compared to nominees who came close to winning the award, awardee CFOs have a...

This paper investigates the role of outside options in the executive labor market on earnings management decisions. To proxy for executives’ outside options, we use the number of times other firms cite the executive’s firm as a compensation peer. We find that executives with more citations...

We exploit the staggered introduction of CPA Mobility provisions in the United States to study the effects of spatial licensing requirements on the labor market for accounting professionals. Specifically, we examine whether the removal of licensing-induced geographic barriers affects CPA wages...

We study whether accounting information quality (AIQ) is priced in the executive labor market. Focusing on externally hired CEO compensation at their initial appointment, we find a 7.38% pay premium for a one-standard deviation decline in AIQ measured in the years preceding the appointment. This...

This paper examines how employee numbers change with changes in sales activity. The arguments that, when sales decline, managers retain employees with higher levels of human capital or who have closer relations with managers are important to the literature on cost stickiness. However, there is...