fixed and variable costs. Traditional management accounting theory suggests that a less rigid cost structure with lower … fixed costs offers companies flexibility in resource planning. However, we expect that higher-ability managers tend to adopt … a more rigid cost structure. This is because higher-ability managers are more likely to realize unusually high demand …

a financial expert. These managers are equally myopic, however financial experts are also privy to stock-market beliefs …. Financial experts invest sub-optimally due to catering incentives, while operational managers tend to engage in signaling …-driven overinvestment. We show that operational managers are preferred for low-NPV projects or when stock markets are well informed …

30% of the value mutual fund managers add can be attributed to the firm's role in efficiently allocating capital amongst … its mutual fund managers. We find no evidence of a similar effect when a firm hires managers from another firm. We …

high ability managers incorporate more forward-looking information about cash flows into current earnings through smoothing …, thereby enhancing earnings informativeness. We also find that smoothing associated with high ability managers improves stock …

30% of the value mutual fund managers add can be attributed to the firm's role in efficiently allocating capital amongst … its mutual fund managers. We find no evidence of a similar effect when a firm hires managers from another firm. We …

Career mobility theory suggests that given a certain occupation, schooling improves upward mobility in terms of … promotion and wage growth. We are the first to test the implications of this theory for over- and under-education by means of …. Altogether, these findings strongly support the career mobility theory. Furthermore, by differentiating between internal and …