Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 29, 2022 erstellt
Description:
This paper examines the impact of CEO-chairman titles separation on shareholder value, exploiting a unique regulation enacted by the Brazilian Stock Exchange that demanded mandatory change in CEO duality. Exploring compelling exogenous variation in the roll-out of duality rupture and building on recent methodological developments in difference-in-differences designs, we estimate long-lasting positive effects on shareholder value. Difference-in-discontinuity analysis near the date of disclosure of the regulation indicates that the most suggestive mechanism is shareholders’ sentiment of managerial agency risk inherent in the unified leadership. Our findings oppose prior related studies and support that a well-targeted coercive regulation can be value-enhancing