Do Directors Respond to Stock Mispricing? Evidence from CEO Turnovers

Autor:	Jim Goldman
Rok vydání:	2022
Předmět:	Economics and Econometrics Accounting Finance
Zdroj:	Journal of Financial and Quantitative Analysis. :1-20
ISSN:	1756-6916 0022-1090
DOI:	10.1017/s0022109022001193
Popis:	This article examines whether and how stock mispricing can affect the probability of CEO turnover. In a sample of 1,573 US public firms, I find that, after controlling for fundamental performance, a 1-standard-deviation negative uninformative stock price shock increases the likelihood of CEO turnover by 10%. The mispricing-turnover sensitivity is stronger at firms with an independent board, and a difference-in-difference analysis further supports that finding. Ancillary results suggest that independent directors’ career concerns may play a role in the response of independent boards to mispricing.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::62e67c8f6fe2c8150525c7476de1c925 https://doi.org/10.1017/s0022109022001193 Zobrazit plný text záznamu