Corpus ID: 14168618

Looking in the Rear View Mirror : The Effect of Managers ’ Professional Experience on Corporate Cash Holdings *

@inproceedings{Dittmar2013LookingIT,
  title={Looking in the Rear View Mirror : The Effect of Managers ’ Professional Experience on Corporate Cash Holdings *},
  author={A. Dittmar and R. Duchin},
  year={2013}
}

A. Dittmar, R. Duchin

Published 2013

This paper examines how CEOs’ prior work experiences affect firms’ financial policies. Using employment data on more than 8,500 CEOs, we study the effect of being previously employed at a firm that faced financial difficulties on the decision to hold more cash. Our identification strategy exploits exogenous CEO turnovers and past employment in other firms and in roles other than the CEO. We find that firms run by CEOs who experienced financial difficulties are more conservative and hold… CONTINUE READING

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