Topic: Big Bath

Why Stock Prices Tumble after Bank CEO Turnover

Change in top leadership, specifically in banks, is marked by a shift in strategy and an immediate decline in stock prices. Research into bank CEO turnover provides insights on how career concerns and management incentives lead to distortionary practices. On behalf of ISBInsight, Ujval Nanavati spoke with two authors of the paper ‘Effects of CEO Turnover in Banks’, Krishnamurthy Subramanian …

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