We examine the effects of CEO turnover in banks. Incoming bank CEOs face problems from information asymmetry because … banks' operations are opaque and bank risk can change dramatically in a short time. Incoming bank CEOs may therefore change … bank policies to manage their personal risks. Since CEO turnover is usually endogenous, we utilize a setting where CEO …

We examine the effect of CEO turnover on earnings management in banks. Since banking is intrinsically an opaque … activity, we hypothesize that an incoming CEO of a bank is more likely to manage earnings than a counterpart in a non financial … firm. To identify the hypothesized effects, we exploit exogenous variation generated by age-based CEO retirement policies …

CEO succession at many companies occurs in a black box. Shareholders are not privy to boardroom discussions prior to … the announcement of a CEO departure, and press releases announcing the change contain boilerplate language that does not … make it clear whether the CEO stepped down voluntary or was forced to resign. In this Closer Look, we examine a model …

This study investigates the development of income-decreasing discretionary expenses surrounding CEO turnovers at banks …. We expect incoming CEOs to take an earnings bath during the initial stage of their tenure. For a sample of German banks … accounting, during their first (partial) year in charge, (2) incoming CEOs from outside the bank take a larger earnings bath than …