CEO mobility and corporate policy risk

Gonul Colak; Timo Korkeamäki

doi:10.1016/j.jcorpfin.2021.102037

CEO mobility and corporate policy risk

Gonul Colak^*, Timo Korkeamäki

^*Corresponding author for this work

Finance, Helsinki

Aalto University

Research output: Contribution to journal › Article › Scientific › peer-review

13 Citations (Scopus)

Abstract

Career concerns can limit a manager's willingness to take risks, which can lead to excessive policy conservatism. An increase in a CEO's ability and willingness to change jobs (CEO mobility) can diversify her human capital and reduce her conservatism. We derive several CEO mobility measures and relate them to a policy riskiness index that captures the overall risk embedded in a firm's corporate policies. We find a strong positive relation between CEO mobility and the riskiness of corporate policies. We also link external regulatory shocks that constrain labor mobility to significant drops in corporate risk-taking.

Original language	English
Article number	102037
Peer-reviewed scientific journal	Journal of Corporate Finance
Volume	69
Number of pages	28
ISSN	0929-1199
DOIs	https://doi.org/10.1016/j.jcorpfin.2021.102037
Publication status	Published - 08.07.2021
MoE publication type	A1 Journal article - refereed

Keywords

512 Business and Management
CEO mobility
corporate policy risk
shareholder value

Areas of Strength and Areas of High Potential (AoS and AoHP)

AoS: Financial management, accounting, and governance

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.jcorpfin.2021.102037Licence: CC BY

1-s2.0-S0929119921001590-mainFinal published version, 899 KBLicence: CC BY

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CEO mobility and corporate policy risk

Abstract

Keywords

Areas of Strength and Areas of High Potential (AoS and AoHP)

UN SDGs

Access to Document

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