FIRM FAILURE AND MANAGERIAL LABOR-MARKETS - EVIDENCE FROM TEXAS BANKING

abstract

• We study the managerial labor market's ability to discriminate between good and bad managerial performance. Using a sample of failed and nonfailed Texas banks, we find that the context of job loss affects the manager's ability to regain comparable employment. Managers associated with banks that failed for reasons arguably beyond the managers' control were twice as likely to regain comparable banking posts as managers at other failed banks. We also detect a relation between the probability of post-failure reemployment and a manager's rank within the firm and to proxies for managerial self-dealing and competence. 1995.

authors

• Cannella, Albert

published proceedings

• JOURNAL OF FINANCIAL ECONOMICS

altmetric score

• 3

author list (cited authors)

• CANNELLA, A. A., FRASER, D. R., & LEE, D. S.

citation count

• 108

complete list of authors

• CANNELLA, AA||FRASER, DR||LEE, DS

publication date

• June 1995

publisher

• Elsevier  Publisher

published in

• Journal of Financial Economics  Journal

keywords

• Financial Distress
• Management Turnover
• Managerial Labor Markets
• Relative Performance Evaluation

Digital Object Identifier (DOI)

• 10.1016/0304-405X(94)00810-N

start page

• 185

end page

• 210

volume

• 38

issue

• 2

URL

• http://dx.doi.org/10.1016/0304-405x(94)00810-n