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When there is uncertainty about a CEO's quality, news about the firm causes rational investors to update their expectation of the firm's value for two reasons: Updates occur because of the direct effect of the news, and also because news leads investors to update their assessment of the CEO's...
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's prospects. Overall, uncertainty about management quality appears to be an important source of stock return volatility …
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's prospects. Overall, uncertainty about management quality appears to be an important source of stock return volatility …
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