CEO mobility and corporate policy risk

Gonul Colak*, Timo Korkeamäki

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

1 Citation (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 languageEnglish
Article number102037
Peer-reviewed scientific journalJournal of Corporate Finance
Volume69
Number of pages28
ISSN0929-1199
DOIs
Publication statusPublished - 08.07.2021
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • CEO mobility
  • corporate policy risk
  • shareholder value

Sustainable Development Goals

  • GOAL 17: Partnerships to achieve the Goal

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

  • AoS: Financial management, accounting, and governance

Fingerprint

Dive into the research topics of 'CEO mobility and corporate policy risk'. Together they form a unique fingerprint.

Cite this