Looking in the Rearview Mirror: The Effect of Managers' Professional Experience on Corporate Financial Policy

• 成果类型: Article
• 署名作者: Dittmar, Amy; Duchin, Ran
• 署名单位: University of Michigan System; University of Michigan; University of Washington; University of Washington Seattle
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhv051
• 发表日期: 2016
• 页码: 565
• 关键词: CEO TURNOVER; cash; overconfidence; decisions; investors; GENDER; style; FLOW

摘要

We track the employment history of over 9,000 managers to study the effects of professional experiences on corporate policies. Our identification strategy exploits exogenous CEO turnovers and employment in other firms and in non-CEO roles. Firms run by CEOs who experienced distress have less debt, save more cash, and invest less than other firms, with stronger effects in poorly governed firms. Experience has a stronger influence when it is more recent or occurs during salient periods in a manager's career. We find similar effects for CFOs. The results suggest that policies vary with managers' experiences and throughout managers' careers.