Stock Market Liquidity and Short-Termism Driven CEO Turnover

摘要: Does an improvement in stock market liquidity cause the board of directors to become more short-term oriented? Improved may lead enhanced efficiency with trading by informed blockholders (Maug, 1998). Hence, price would better reflect fundamental values firm (Edmans, 2009), leading worry less about performance. On other hand, give transient institutional investors (Bushee, 1998) additional flexibility unwind their position fast, which can result heavier focus on performance both CEO and investors. Using 2001 decimalization as a natural experiment, we find that turnover companies higher ownership became myopic liquidity.