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Firm Competition and CEO Turnover: Evidence from US Railroad Deregulation

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  • Felipe Aldunate

Abstract

In this article, I examine how changes in the competitive environment of firms affect matches between chief executive officers (CEOs) and firms. I exploit the 1980 Staggers Rail Act, which drastically deregulated the freight railroad industry, as a source of arguably exogenous variation in the operating environment. Using hand†collected data, I obtain three main findings: first, CEO turnover rates increase; second, relative to utility firms, railroad CEOs have more business education and show broader work experience after deregulation; and third, firm performance leads to CEO turnover only during the regulated period.

Suggested Citation

  • Felipe Aldunate, 2018. "Firm Competition and CEO Turnover: Evidence from US Railroad Deregulation," Financial Management, Financial Management Association International, vol. 47(2), pages 451-476, June.
    • Handle: RePEc:bla:finmgt:v:47:y:2018:i:2:p:451-476
    DOI: 10.1111/fima.12201
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    References listed on IDEAS

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