@article{ba88fe02a2314571b1776f4902f8d5b1,
title = "Firm failure and managerial labor markets evidence from Texas banking",
abstract = "We study the managerial labor market's ability to discriminate between good and bad managerial performance. Using a sample of failed and nonfailed Texas banks, we find that the context of job loss affects the manager's ability to regain comparable employment. Managers associated with banks that failed for reasons arguably beyond the managers' control were twice as likely to regain comparable banking posts as managers at other failed banks. We also detect a relation between the probability of post-failure reemployment and a manager's rank within the firm and to proxies for managerial self-dealing and competence.",
keywords = "Financial distress, Management turnover, Managerial labor markets, Relative-performance evaluation",
author = "Cannella, {Albert A.} and Fraser, {Donald R.} and Lee, {D. Scott}",
note = "Funding Information: Key words: Managerial labor markets; Management turnover; Financial distress; Relative-performancee valuation JEL classification: G21; G33; G34; 544 *Corresponding author. Our special thanks to John Byrd, Dave Blackwell, and Mike Weisbach (the referee) whose comments greatly improved the focus and clarity of the paper and to Jim Calvin for his statistical insight. We have also benefited from the comments of Mike Alderson, Len Bierman, Dave Denis, Diane Denis, Dave Dubofsky, Paul Horvitz, Joel Houston, Dave Ikenberry, Ed Kane, Robert Kieschnick, John O{\textquoteright}Keefe, Bob Parrino, Rick Ruback (the editor), Dennis Sheehan, David Turpin, Ken Wiles, and the participants at a Texas A&M University workshop. Alan Montgomery, Yolanda Yeung, Tom Williams, and Merrill Heddy provided excellent research assistance. Lee gratefully acknowledges the financial support of the Private Enterprise Research Center at Texas A&M University.",
year = "1995",
month = jun,
doi = "10.1016/0304-405X(94)00810-N",
language = "English (US)",
volume = "38",
pages = "185--210",
journal = "Journal of Financial Economics",
issn = "0304-405X",
publisher = "Elsevier",
number = "2",
}