Tsoulouhas, Theofanis; Knoeber, Charles R.; Agrawal, Anup - Department of Economics, Poole College of Management
Should a firm favor insiders (handicap outsiders) when selecting a CEO? One reason to do so is to take advantage of the contest to become CEO as a device for providing current incentives to employees. An important reason not to do so is that this can reduce the ability of future CEOs and, hence,...