Shareholder Activists and Frictions in the CEO Labor Market
| Autor: | Keusch, Thomas |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
M12
shareholder activism ComputingMilieux_THECOMPUTINGPROFESSION M51 Executive labor market corporate governance ComputingMilieux_PERSONALCOMPUTING ComputingMilieux_LEGALASPECTSOFCOMPUTING jel:G23 jel:G34 jel:M51 jel:G32 GeneralLiterature_MISCELLANEOUS ComputingMilieux_MANAGEMENTOFCOMPUTINGANDINFORMATIONSYSTEMS ddc:340 jel:M12 ddc:330 G32 G23 G34 |
| Popis: | Using hand-collected data on CEO appointments during shareholder activism campaigns, this study examines whether shareholder involvement in CEO recruiting affects frictions in CEO hiring decisions. The results indicate that appointments of CEOs who are recruited with shareholder activist influence are followed by more favorable stock market reactions and stronger profitability improvements than CEO appointments that also occur during activism campaigns but without the influence of activists. I find little evidence that shareholder activists increase hiring frictions by facilitating the recruiting of CEOs who will implement myopic corporate policies. Analyses of recruiting process characteristics reveal that activist influence is associated with more resources being dedicated to the CEO search process and with a higher propensity to recruit CEOs from outside the firm. These findings contribute to the CEO labor market literature, which tends to focus on the decision to remove incumbent CEOs but provides limited insights into CEO recruiting. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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