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We investigate the financial result of boards' choices to promote a new CEO from within the firm or hire externally, at large U.S. public firms between 1986 and 2005. This choice theoretically maximizes profits. Additionally, choosing a new CEO from outside the firm influences labor market...
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We explore the effectiveness of the clawback provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act as a deterrent to earnings manipulations. Using a sample of firms that issued “high concern” earnings restatements, we estimate the career and monetary benefits the CEO...
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