Document Type

Article

Publication Date

2022

DOI

10.1561/114.00000011

Publication Title

Review of Corporate Finance

Volume

2

Issue

1

Pages

1-63

Abstract

This study examines whether chief executive officers (CEOs) are to blame for corporate failures. Using alternative CEO managerial ability measures, we document that high-ability (low-ability) CEOs are less (more) likely to be associated with bankruptcy. We also find that reorganized firms run by high-ability incumbent CEOs experience improved financial performance after filing for Chapter 11. Firms that hire high-ability CEOs with bankruptcy experience also realize improved financial performance. Our evidence indicates that the likelihood of corporate bankruptcy is unrelated to the presence of high-ability managers and that bankruptcy does not adversely affect the post-bankruptcy careers of high-ability CEOs.

Comments

© 2022 R. Chowdhury and J. A. Doukas.

Included with the kind written permission of the copyright holders.

Original Publication Citation

Chowdhury, R., & Doukas, J. A. (2022). Are CEOs to blame for corporate failure? Evidence from Chapter 11 filings. Review of Corporate Finance, 2(1), 1-63. https://doi.org/10.1561/114.00000011

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