Abstract:We examine how chief executive officer (CEO) mobility affects corporate payouts. We exploit US state courts’ staggered adoption of the inevitable disclosure doctrine (IDD) to obtain exogenous variation in mobility. We report several findings. First, we find that firms in IDD‐adopting states increase dividend payouts, whereas the effect of IDD on share repurchases is insignificant relative to firms not in IDD‐adopting states. Second, the increase in dividends is concentrated on firms run by CEOs having high abi… Show more
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