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Title: Marriage and Managers' Attitudes to Risk

Citation Type: Miscellaneous

Publication Year: 2013

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Abstract: Marital status can both reflect and a ffect individual preferences. We explore the impact of marriage on corporate CEOs, and fi nd that firms run by single CEOs exhibit higher stock return volatility, pursue more aggressive investment policies, and do not respond to changes in idiosyncratic risk. These e ffects are weaker for older CEOs. Our fi ndings continue to hold when we use variation in divorce laws across states to instrument for CEO marital status, which supports the hypothesis that marriage itself drives choices rather than it just reflecting innate heterogeneity in preferences. We explore various potential explanations for why single CEOs may be less risk-averse.

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Authors: Roussanov, Nikolai; Savor, Pavel

Publisher: University of Pennsylavia

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Migration and Immigration

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