Raids, Rewards, and Reputations in the Market for CEO Talent

@inproceedings{Hadlock2001RaidsRA,
  title={Raids, Rewards, and Reputations in the Market for CEO Talent},
  author={Charles J. Hadlock and C. Edward Fee},
  year={2001}
}
We examine the basic hypothesis that the market for managerial talent rewards managers from firms with superior stock price performance. We identify a set of outside CEO hires in a set of large publicly traded firms and investigate the stock price performance of the prior employers of these executives. Using 5-year buy-and-hold returns as our basic performance measure, we find that the prior employers of our sample executives did, on average, exhibit superior performance compared to a variety… CONTINUE READING