Topic: Economic Outcomes

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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Political Speech and Economic Outcomes: Running the Numbers

Professors Art Durnev, Larry Fauver and Nandini Gupta present a summary of the findings of their textual analysis of gubernatorial speeches in the United States and find a positive association between the level of optimism expressed in the speech and abnormal returns of firms headquartered in that state. They also find that a more optimistic gubernatorial speech is associated with …

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